THE NEXUS BETWEEN HOUSING GLUT, ECONOMIC GROWTH, HOUSING AFFORDABILITY AND HOUSE PRICE IN MALAYSIA

Authors

  • Yip Chee Yin Faculty of Business and Finance UNIVERSITI TUNKU ABDUL RAHMAN
  • Au Yong Hui Nee Faculty of Business and Finance UNIVERSITI TUNKU ABDUL RAHMAN
  • Abdelhak Senadjki Faculty of Business and Finance UNIVERSITI TUNKU ABDUL RAHMAN

DOI:

https://doi.org/10.21837/pm.v17i9.604

Keywords:

Housing glut, affordability, imbalance in supply and demand

Abstract

This paper analyses [1] the relative impact of housing affordability, housing prices and gross domestic product on housing glut, [2] the effects of housing glut on the health of housing market and then [3] suggestion of solutions to mitigate the risks of housing bubble bursting. Results show that housing affordability and housing price exert very mild effect on housing glut contrary to the common belief that these two factors have significant effect on housing glut. In terms of number, our results show that economic growth contributes about 0.15 negative impact on housing glut for every unit increase in economic growth while each unit increase in housing price can increase housing glut as much as 0.0054 unit.

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Published

2019-05-06

How to Cite

Chee Yin, Y., Yong Hui Nee, A., & Senadjki, A. (2019). THE NEXUS BETWEEN HOUSING GLUT, ECONOMIC GROWTH, HOUSING AFFORDABILITY AND HOUSE PRICE IN MALAYSIA. PLANNING MALAYSIA, 17(9). https://doi.org/10.21837/pm.v17i9.604