Factors that affecting housing price index in Malaysia / Muhammad Haziq Zaid

The study is conducted to evaluate the effects of macroeconomic variables in the house price index in Malaysia from the period 2000 until 2020 by annually. The dependent variable used in this study is housing price index while the independent variables used are the gross domestic product, consumer price index, base lending rate, and money supply. The data was collected and computed based on their historical accounting from World Bank Information while dependent variable (HPI) is obtain from NAPIC and is analyzed based on time-series data. Based on the finding, gross domestic product and base lending rate is significant and positively influenced house price index in Malaysia. Meanwhile, in a long run Consumer price index and money supply have a negative impact on house price index. This means that economic indicators are essential aspects that will influence how house values change and function in the future. Further studies indicate that in order to achieve a better outcome, study should be conducted over a longer period of time, as this may affect the accuracy of the study's results. Furthermore, additional housing price research is needed to analyze how house prices change year to year based on various independent variables.