Analysing macroeconomics factors of housing price in Malaysia
List of Authors
  • Mohamad Nur Azim Ariffin , Nur Hanis Mohd Mokhlis

Keyword
  • Malaysian housing price index, GDP, ER, LR, RGPT, UR, OLS

Abstract
  • An increment in the pattern of housing prices in Malaysia cause worries to the people as the trend moves closer to be unaffordable. This research allows policymakers and governments to control and take advantage of the element that strongly impacts price fluctuations on the real estate market. In this research, samples of data which the information ranges are taken in quarterly basis from 2010 Q1 to 2019 Q4 and retrieved from National Property Information Centre (NAPIC) and Department of Statistic Malaysia (DOSM). All variables collected were obtained through the secondary sources. Firstly, the main focus of this study is to identify the pattern and connection of macroeconomic determinants towards housing price index in Malaysia. Next, this study examines whether the changes in Gross Domestic Product (GDP), Exchange Rate (ER), Lending Rate (LR), Real Property Gain Tax (RPGT) and Unemployment Rate (UR) is related to trend of housing price index in Malaysia. Ordinary Least Square (OLS) and T-test statistics techniques were conducted with the purpose of capturing the effect of independent variables. Diagnostic checking techniques were also applied in this research. It is found that the growth rate of Gross Domestic Product (GDP) and Unemployment Rate (UR) are the only factors that insignificant.

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