Relationship between economic growth, consumer price index and housing loan rate on housing price in Malaysia

Over the past few years, Malaysia has experienced foremost changes of house price. The significant changes will distress the people among the current lenders. The objective of this study is to investigate the relationship between Economic Growth, Consumer Price Index and Housing Loan Rate on Housing Price in Malaysia. The design of this study consists of 30 observations secondary data of each variable from 1986 until 2015 which are on a yearly basis. There are few types of analysis tested by using EViews Version 9 and by applying structural time-series methodology. Those data were analysed using the Single Linear Regression and Multiple Linear Regression model meanwhile the variables analysed using the t-test, f-test and others to ensure the relationship between all the variables. The result indicates that not all of predictors are significantly related to house price, only Consumer Price Index and Housing Loan Rate are positive relationship with the movement of house price index while the Economic Growth is negative relationship with the Housing Price. The study intends to contribute and enhance the execution on scenario planning that related to unpredictable house price rising. This study will help investors and government excellently and to facilitate buyers to assess the timing from macroeconomic factor.