RESIDENTIAL PROPERTY PRICE HIKE AND SPECULATION
DOI:
https://doi.org/10.21837/pm.v17i9.609Keywords:
price hike, residential, property, speculationAbstract
This study analyzes the behaviour of property price in Malaysia by examining factors influencing the residential property prices. It aims to determine whether property prices hike in Malaysia can be explained by the fundamental factors or it is due to other unexplained factors, such as speculation. Findings from the study reveal that most of the factors did have significant influence on property price. In addition, the cointegration analysis indicates that the property price and its factors are cointegrated for all property market segments across states. This implies the presence of a long run relationship between the property price and its determining factors, despite slow adjustment of property price towards equilibrium in the long run. This study concludes that the residential property price hike in Malaysia is impacted by fundamental factors and is not speculative in nature.Downloads
References
Ciarlone, A.A. (2015). Property cycles in emerging economies. Studies in Economics and Finance, 32(1), 17 - 52.
Glindro, E.T., Subhanij, T., Szeto, J., & Zhud, H. (2011). Determinants of property price in nine Asia-Pacific economies. International Journal of Central Banking, 7(3), 163-204.
Ibrahim, M.H., & Law, S.H. (2014). Property price and bank credits in Malaysia: An aggregate and disaggregate analysis. Habitat International, 42, 111-120.
Jud, G.D., & Daniel, T.W. (2009). The dynamics of metropolitan housing prices. Journal of Real Estate Research, 23(1), 29-45.
Kamal, E. M., Hassan, H., Osmadi, A., & Fatah, H.A. (2015). Housing price control: is it a way forward? Sustainable Development, 2, 1225-1235.
Kamal, E. M., Hassan, H., & Osmadi, A. (2016). Factors influencing the housing price: developers’ perspective. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 10(5), 1603-1609.
Koivu, T. (2012). Monetary policy, asset prices and consumption in China. Economic Systems, 36, 307-325.
Lean, H.H., & Smyth, R. (2014). Dynamic interaction between property price and stock prices in Malaysia. International Journal of Strategic Property Management, 18(2), 163-177.National Property Information Centre (NAPIC). (2015). The Malaysian House Price Index by House Type. Retrieved from http://napic.jpph.gov.my/portal
Ong, T.S. (2013). Factors affecting the price of housing in Malaysia. Journal of Emerging Issues in Economics, Finance and Banking (JEIEFB), 1(5), 414-429.
Osmadi, A., Kamal, E.M., Hassan, H. & Fattah, H.A. (2015). Exploring the elements of housing price in Malaysia. Asian Social Science, 11(24), 26-38.
Pillaiyan, S. (2015). Macroeconomic drivers of property price in Malaysia. Canadian Social Science, 11(9), 119-130.
Ramazan, S., Bradley, T. E., & Bahadir, A. (2007). Macroeconomic variables and the housing market in Turkey. Emerging Markets Finance and Trade, 43(5), 5-19.
Tang, T.C., & Tan, P.P. (2015). Real interest rate and property price in Malaysia: an empirical study. Economics Bulletin, 35(1), 270-275.
Topalov, C. (2018). Prices, profits and rents in residential development: France 1960-80. In B. Michael, E. Michael, B. Vincenzo & F. Marino (Eds.), Land rent, housing and urban planning: A European perspective (1-21). London : Routledge.
Tsatsaronis, K., & Zhu, H. (2004). What drives housing price dynamics: cross-country evidence. BIS Quarterly Review, March, 65-78.
Zandi, G., Supramaniam, M., Aslam, A., & Theng, L.K. (2015). The economic factors affecting residential property price: the case of Penang Island. International Journal of Economics and Finance, 7(12), 200-210.
Downloads
Published
How to Cite
Issue
Section
License
Copyright & Creative Commons Licence
eISSN: 0128-0945 © Year. The Authors. Published for Malaysia Institute of Planners. This is an open-access article under the CC BY-NC-ND license.
The authors hold the copyright without restrictions and also retain publishing rights without restrictions.