The Location Of Kuala Lumpur

Published Date: 02 Nov 2017

.CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

In this chapter, researcher explained about preparation of processing methodology procedure in this research. This research, researcher decides to use quantitative and qualitative research. Quantitative methods commonly use survey research because it is the most widely adopted in research method. The survey of the factors of valuer’s challenging to the inaccuracy of valuation uses questionnaire method to obtain response of valuer from private valuation firm. The questionnaire is one of the most widely use in data collection method. Another method is personal interview. The interview conducted to get the detail explanation of the research study.

3.2 Study Area

The studies were conducted to three main geographical states in Malaysia such as Kuala Lumpur, Johor and Pulau Pinang.

3.2.1 Kuala Lumpur

Kuala Lumpur is a federal capital and most populated city in Malaysia. The land area of Kuala Lumpur is 243 square kilometre. The density of population is the highest which 6,891 persons per square metre and the total population are 1,674,621 people (Population Distribution and Basic Demographic Characteristic, 2010). Population and economy in Kuala Lumpur made the city as the fastest growing metropolitan city and known as Greater Kuala Lumpur. The city is a centre for finance, insurance, real estate, media and the arts of Malaysia. The Gross Domestic Product (GDP) per capita for year 2005-2010 is RM 55,951 (Malaysia Economics Statistics- Time Series, 2011). Kuala Lumpur is located on the west coast of Peninsular Malaysia and the faster development occurs because the land is strategic which is wider and flat.

Kuala Lumpur is served by a railway and roads linking it to all neighbouring surrounding. It has a railway station for example LRT, Rapid KL and Monorail as well as a bus interchange. The accessibility to Kuala Lumpur is easily by Lebuhraya Shah Alam, North South Central Link, Lebuhraya Sg. Besi, Lebuhraya Baru Pantai, Lebuhraya Ampang-KL, Lebuhraya Cheras Kajang , Federal highway and others link connect to the city. Kuala Lumpur is served by a general hospital, police station and fire station. It has numerous primary schools, several secondary schools and a public library and others public amenities.

3.2.2 Johor Darul Takzim

Johor is located at south of Peninsular Malaysia. The land area of Johor is 19,210 square kilometre and the density of population is 174 persons per square matre. The total of population is 3,348,283 people (Population Distribution and Basic Demographic Characteristic, 2010).

Johor had established Iskandar Johor (Iskandar Development Region and South Johor Economic Region) to enhance the economy of state. It covers the area of Johor Bahru, Johor Bahru Tengah, Kulaijaya, Pasir Gudang and Nusajaya. These developments provide living, entertainment and business to local people and attract foreign investor. The location is strategic and nearby to the Singapore country make the world attract to invest in this country. Besides that, there are three major ports such as Pasir Gudang Port, Tanjung Pelepas Port and Tanjng Langsat Port in Johor and as the part of main port in Asian. The state is also easily accessible by air, land, railway and sea (Investing in Iskandar Malaysia, 2007-2013). Then, the GDP per capita for year 2005-2010 is RM 20,911 (Malaysia Economics Statistics- Time Series, 2011).

3.2.3 Pulau Pinang

The state is located on North of Peninsular Malaysia. The land area of state is 1,048 square kilometre and the density of population is 1,490 person per square kilometre. Meanwhile, the total of population is 1,561,383 people. According to the department of statistics Malaysia (2010), Pulau Pinang is the second highest density of population in Malaysia. The main link to connect mainland and island is Penang Bridge. The bridge starts at Gelugor on the island and ends in Perai. Seberang Perai and other small islands nearby also include as Pulau Pinang state. The state can be access by the road, air, train and sea. The highway connect to Pulau Pinang are North-South Highway. Besides that, the state also fulfil by the public amenities such as hospital, police station, fire station, entertainment and else. The public transportation also provided for example bus, train, trishaw and ferries.

The economy of Pulau Pinang is from manufacture and tourism sector. The GDP per capita for 2005-2010 is RM 33,456 (Malaysia Economics Statistics- Time Series, 2011). Pulau Pinang also gazetted as UNESCO Heritage Site in year 2008. The tourism burst the economy of state after been certified by World Heritage Site.

Figure 1: Maps of Peninsular Malaysia shows the location of Kuala Lumpur, Johor and Pulau Pinang. Capture2.PNG

Source: Department of Statistics Malaysia.

3.3 Method of study

3.3.1 Sampling design

The study population comprises taken is from private firms registered with BOVAEA. To ensure a consistency of approach and get the correct information, a highly structured survey instrument was developed. The respondent is focusing to the "Valuers" like Registered valuer, valuer executive and assistant valuer who are graduates of estate management from university or valuation institutional. The sample was drawn from three main geographical areas in Malaysia which is Kuala Lumpur, Johor and Pulau Pinang. The registered valuation firm according to BOVAEA contains a total of 134 registered private firms out which 73 (54.48%) in Kuala Lumpur, Johor have 36 (26.87%) and Pulau Pinang have 25 (18.66%).

The valuation include in this study is all categories of residential properties sold within last two years. The choice of three clusters is to satisfy need for wide geographical spread in Malaysia. The firms in these three clusters are behalf the overall of valuers in Malaysia. The main reasons for this three clusters taken is from the highest population and density of population in Malaysia where the concentration of residential properties also high.

Area or cluster sampling technique was used to decide the of firm selected in each cluster in proportion to the number of registered firms in each of the three clusters while the sample subjects (the firms and the valuers) were selected by random sampling.

3.4 Source of Data

Information of this study includes the primary and secondary data.

3.4.1 Primary Data

Primary data are obtained using questionnaire in face to face interview. It was new data specifically collected in research project – the researcher is the primary user of such data. Primary data was data that we got from the respondents. Primary data was collected through interview or questionnaires. The primary data were consist quantitative research and qualitative research.

3.4.1a Quantitative research

Quantitative research gains the data in the form of numerical data. The numerical data is come from the respondents. This research needs the primer data by questionnaires ways. The respondents consist of valuers executive, assistant of valuer executive and registered valuers in Kuala Lumpur, Johor and Pulau Pinang that will answer the questionnaire. The designs of this questionnaire are consist five main parts which is demographic question, degree of valuation accuracy, factors related to the inaccuracy of the valuation, reasons for valuation variance and possible solution to valuation inaccuracy. By questionnaires, the researcher can give the questionnaires direct to respondent who read the instruction and question and then record their answer.

3.4.1b Qualitative research

The qualitative research was conduct through interview. All the information was get from the respondents that were interview directly by the researcher. In this study, the Valuer becomes a respondent and will be interviewed to get such needed information.

3.4.2 Secondary data

Secondary data plays a variety of roles in a research project. It includes the both of raw material and published summaries. Secondary data was already exist and were a collected for the some other (primary) purposes which mainly be used in previous chapter. In this research, the secondary data that the researcher used such as literature review and internet are being used as the information that will be provided in the questionnaire.

Literature was collection of printed materials such as text books and journals related to this dissertation topic in order to gather the relevant information needed. All the information that we get from the literature was related with our research. Besides that, some information and data related for this dissertation topic are taken from the internet web page. The literature, journal and others information was taken from the internet.

3.7 Data Collection

Data Collection is an important aspect in this research. Inaccurate data collection can affect the results of study and ultimately lead to invalid results. In this research, the primary and secondary data collected to produce the data analysis. The primary data collection is collects through interviews and questionnaire. The information were be analyzed systematically and interpreted correctly to reach the findings and conclusions.

The actual survey was done and takes time within two weeks. The survey was taken in Kuala Lumpur, Johor and Pulau Pinang areas where about 100 sets of questionnaire are being distributed among the assistant valuer executive, valuer executive and Registered valuer in the firm.

3.7.2 Online survey

Follow the current technology, the online survey was used. The use of internet for example, e-mail were approved as not limited and give many benefits to the research despite save the cost, quick and easy data collection and also friendly (Piaw, 2012).

This method had been use in this study by sending email to the respondent. The email address is taken from the BOVAEA which the registered valuation firm in Kuala Lumpur, Johor and Pulau Pinang. The instrument use for online survey is Google Drive. The Google Drive is an instrument was established by the Google and easier for the researcher distributes the questionnaire over the three states. The distance of the state is far and need the high cost to distribute by hand to the respondent. The time to respond for the online survey is two week. The instrument is already summarizing the total response of the respondent and easy for the researcher to key in data.

3.8 Questionnaire Design

The questionnaires form will be consist of the questions for the Valuers, as respondents that need to answer it. The questionnaire will divide into five major parts. There are part one for demographic question, part two is Degree of valuation inaccuracy, part three is factors related to the inaccuracy of the valuation, part four, reasons for valuation variance and part five is possible solution to valuation inaccuracy.

The first section of questionnaire is consisting of demographic question. This section is intended to gather information such as gender, age, race, education level, position, working experiences, age of firm, average number of valuation carried out in month and the method used for valuation residential properties. The position question is the most important which will determine the parties that answered that questionnaire.

The second section is degree of valuation accuracy. Respondent were asked to tick an appropriate choice of value of agreement that reflect to their opinion. The choice used in this section is 0-10 percent, 11-15 percent and more than 16 percent. The respondent will tick the one answer in the box.

The third section was designed to identify the factors relate to the inaccuracy of the valuation. There are nine items listed. The respondents were asked to tick an appropriate level to be the best reflects of their opinion for each item. The scale used in this section is (1) strongly disagree, (2) disagree, (3) moderate, (4) agree and (5) strongly agree.

The forth section which is designed to identify the reasons for valuation variance among the valuers. There are seven items to be selected. This section is aim to find the relationship between the inaccuracy and variance in valuation. the scale of the answer is same as the previous section.

The fifth section and last, to investigate the possible solution to valuation inaccuracy. Nine items are listed to choice by the respondent. This is to see how the valuer opinion on their possible solution to handling this issue. The scale of answer is same as the previous section.

3.9 Pilots Testing

After designing the questionnaires, pilot testing was applied. The pilot testing is very significance parts in this research to identify either the questions that have been created is valid or not. By the testing on the question, researcher also can ensure the validity question are easy to understand and either it reliability or not. To conduct this testing, 10 set from the identical characteristics will be used to do a pilot testing (Piaw, 2012). In this study, the pilot testing was running after the questionnaire set was completed. After survey, they are several problem were detected. For example, the font’s size, arrangement of question and typing error. Some questions also cannot understand by the respondents. So, the pilot testing was a way to improve the setting and questions itself.

To refine the questionnaire, researcher needs to conduct a pilot survey. This is a small-scale trial prior to the main survey that tests all our question planning. Amendments to questions can be made. After making some amendments, the new version would be re-tested. If this re-test produces more changes, another pilot would be undertaken and so on.

It is usual to pilot the questionnaires personally so that the respondent can be observed and questioned if necessary. By timing each question, researcher also can identify any questions that appear too difficult, and researcher can obtain a reliable estimate of the anticipated completion time for inclusion in the covering letter. The result can also be used to test the coding and analytical procedures to be performed later.

4.0 Data Analysis

The data or all information that have been collected should be analyzed. By using the SPSS system (Statistical Package for the social science), researcher will be analyzing the data. This is because, by this system the information and data will be express can be analyzing and this software also ideally suited to dealing with numerical data and handles of non-numerical data. The data result will be express by using pie chart, graphs, and also matrix. The data of this research was collected through questionnaire.

In this study, the data were analysed by means of simple frequency counts and descriptive statistics like weighted average, arithmetic mean, mode, median, and percentages.

4.1 Conclusions

Generally, research method is the way in which researcher collect the data to answer research question and achieve research objectives. Methodology is an important and critical stage in any research. Researcher should aware in choosing research approach organize framework, and step to ensure the target objective is achieve.