The determinants of housing price index / Erna Idna Suali

Developments in the housing market can have an important impact on macroeconomic, as well as financial. As with most economies, the housing market is an important component of domestic economy. For Malaysian, the country has experiencing a rising of urban growth since 1950’s due to the increased in population and other economic movement. The factors that contribute to the high rate of urban growth such as migration, the population size and income level have significantly influenced the housing market. Besides, the increasing on demand of house and fluctuation of price has led to the changes in housing market. In most of the countries around the world, the affordability level is one of the keys driven for an individual to buy a real property such as house. Thus, affordability level is one of the important factors for an individual to buy and own a residential property.