The determinants of housing prices in Malaysia

• Main Author: Nurul Izzati, Rusnan
• Format: Final Year Project Report
• Language: English
• Published: Universiti Malaysia Sarawak, (UNIMAS) 2016
• Subjects: H Social Sciences (General)
• Online Access: http://ir.unimas.my/id/eprint/36525/2/NURUL%20IZZATI%20%28fulltext%29.pdf; http://ir.unimas.my/id/eprint/36525/
• Institution: Universiti Malaysia Sarawak

The purpose of this study is to determine the relationship between the determinants of housing prices in Malaysia by using the stationary test, cointegration test, VECM Granger Causality test, diagnostic tests and dynamic analysis. The variables being used are house price index, interest rate, population, employment, gross domestic product and material prices which has been analyzed in quarterly data from the year 2001 until 2014. The empirical result indicates there is short run and long run relationship between the house price index and employment. Other variables have no significant relationship with the house price. However, there are short run relationship between other variables may indirectly affected the house price in Malaysia. These findings are important to policy makers to adopt appropriate scheme or plan to control the hike of housing prices in Malaysia.