The determinants of the residential property price in Malaysia / Fatin Najihah Rusydina Ahmad Daud

Purchasing a dream house is one of the life goals. The developers' unwillingness to meet the rising household income and population growth has caused an excess supply of houses. The rise in the cost of living in Malaysia has affected the country's economy as well as its housing affordability. Despite the high supply, Malaysians cannot afford to buy houses due to current economic conditions. This research is attempted to identify the determinants of the residential property prices in Malaysia. The independent variables involved are unemployment rate (UR), lending interest rate (LR), gross domestic product (GDP), exchange rate (ER), and inflation rate (INF). The dependent variable involved is residential property prices in Malaysia. The design of this study will comprise time series data of each variable in quarterly basis from the QI 201 1 until Q4 2020. The test for data analysis used in this research are descriptive analysis, normality test, heteroskedasticity test, multicollinearity test, correlation analysis and regression analysis. The result of the study is unemployment rate (UR), gross domestic products (GDP), exchange rate (ER) and inflation rate (INF) are found to be significant while lending interest rate (LR) is found to be insignificant toward the residential property price in Malaysia.