Overview of property price and its influencing factors in Malaysia

Property price hike creates headaches to several parties most significantly home buyers, policy makers and the government itself. Not confined to only the developing economies, the developed nations also face similar problem. As a result, extensive investigations and discussions have been carried ou...

Full description

Bibliographic Details
Main Authors:	Haron, Razali, Ibrahim, Khairunisah
Format:	Conference or Workshop Item
Language:	English English
Published:	2016
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/52000/ http://irep.iium.edu.my/52000/1/Article%20Abandoned%20Housing%20Conf%20-%20Dr%20Razali%20Haron.pdf http://irep.iium.edu.my/52000/2/Abandoned%20Housing%20Projects%20Conference.pdf

id	iium-52000
recordtype	eprints
spelling	iium-520002016-09-23T02:01:12Z http://irep.iium.edu.my/52000/ Overview of property price and its influencing factors in Malaysia Haron, Razali Ibrahim, Khairunisah HG4001 Financial management. Business finance. Corporation finance. Property price hike creates headaches to several parties most significantly home buyers, policy makers and the government itself. Not confined to only the developing economies, the developed nations also face similar problem. As a result, extensive investigations and discussions have been carried out to identify significant determining factors of property price hike in the attempt to understand the property market price behaviour better. By using quarterly data of house price index (HPI), macroeconomic data and financial market data, this study is to examine the behaviour of property price in Malaysia and its influencing factors from the years 2000 to 2015. A bound testing approach to cointegration and error correction models, developed within an Autoregressive Distributed Lag (ARDL) framework ARDL is employed to determine whether property price in Malaysia is explained by fundamental factors or other unexplained factors such as speculation. The findings from this study show that, based on the different segments of house prices, none of the variables is consistently having significant relationship with house price. Inconclusive results are recorded throughout the variables, indicating that those common factors are not able to explain, comprehensively the behaviour of property price in Malaysia during the period understudy. This is interpreted as the existence of speculative activities in local property market thus influences the behaviour of the prices. This study contributes to the literature by identifying the existence of speculation activities in local property market and has policy implication. Policy makers should work in hand with other responsible parties to investigate further the influence of speculation on property price aiming at addressing the price hike phenomenon. 2016-09 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/52000/1/Article%20Abandoned%20Housing%20Conf%20-%20Dr%20Razali%20Haron.pdf application/pdf en http://irep.iium.edu.my/52000/2/Abandoned%20Housing%20Projects%20Conference.pdf Haron, Razali and Ibrahim, Khairunisah (2016) Overview of property price and its influencing factors in Malaysia. In: National Seminar on Abandoned Housing Projects: Causes & Solutions, 7th September - 8th September 2016, Kuala Lumpur, Malaysia. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Haron, Razali Ibrahim, Khairunisah Overview of property price and its influencing factors in Malaysia
description	Property price hike creates headaches to several parties most significantly home buyers, policy makers and the government itself. Not confined to only the developing economies, the developed nations also face similar problem. As a result, extensive investigations and discussions have been carried out to identify significant determining factors of property price hike in the attempt to understand the property market price behaviour better. By using quarterly data of house price index (HPI), macroeconomic data and financial market data, this study is to examine the behaviour of property price in Malaysia and its influencing factors from the years 2000 to 2015. A bound testing approach to cointegration and error correction models, developed within an Autoregressive Distributed Lag (ARDL) framework ARDL is employed to determine whether property price in Malaysia is explained by fundamental factors or other unexplained factors such as speculation. The findings from this study show that, based on the different segments of house prices, none of the variables is consistently having significant relationship with house price. Inconclusive results are recorded throughout the variables, indicating that those common factors are not able to explain, comprehensively the behaviour of property price in Malaysia during the period understudy. This is interpreted as the existence of speculative activities in local property market thus influences the behaviour of the prices. This study contributes to the literature by identifying the existence of speculation activities in local property market and has policy implication. Policy makers should work in hand with other responsible parties to investigate further the influence of speculation on property price aiming at addressing the price hike phenomenon.
format	Conference or Workshop Item
author	Haron, Razali Ibrahim, Khairunisah
author_facet	Haron, Razali Ibrahim, Khairunisah
author_sort	Haron, Razali
title	Overview of property price and its influencing factors in Malaysia
title_short	Overview of property price and its influencing factors in Malaysia
title_full	Overview of property price and its influencing factors in Malaysia
title_fullStr	Overview of property price and its influencing factors in Malaysia
title_full_unstemmed	Overview of property price and its influencing factors in Malaysia
title_sort	overview of property price and its influencing factors in malaysia
publishDate	2016
url	http://irep.iium.edu.my/52000/ http://irep.iium.edu.my/52000/1/Article%20Abandoned%20Housing%20Conf%20-%20Dr%20Razali%20Haron.pdf http://irep.iium.edu.my/52000/2/Abandoned%20Housing%20Projects%20Conference.pdf
first_indexed	2023-09-18T21:13:44Z
last_indexed	2023-09-18T21:13:44Z
_version_	1777411423619514368

Overview of property price and its influencing factors in Malaysia

Similar Items