The government faces great pressure to provide housing especially affordable housing for the lower income groups. Under its various development plans, the government has strongly embarked on numerous housing programs both in the rural and urban areas with the aim of making Malaysia a home-owning society. Based on the current theoretical framework with respect to housing studies, debates on housing in Malaysia should ideally be concerned with the three main issues of consumption, exchange, and production in the owner-occupation sector of the low-cost housing sub-markets. But the literature indicates that generally the difficulties in the consumption sphere have been regarded as the main housing problem (Morshidi Sirat, 1999). One important aspect of housing consumption is housing affordability. In Malaysia, housing finance policies have been introduced and implemented in order to tackle problems relating to housing affordability. But unfortunately little has been done with respect to house price stabilization measures (UNCHS, 1996)