The determinants of housing price in Malaysia / Ungku Muzirah Ungku Mustaffa

In recent years, rapid economic development has resulted in an increasing demand for residential housing among urban areas in Malaysia. Reviewing the housing prices in Malaysia, the prices have appreciated dramatically whether in major cities or even in smaller towns. Over the past ten years, the residential property market in Malaysia has experienced a significant price expansion. Most people are wondering such a high annual increases in house prices is totally not align with annual increment for the general household.
In fact, most of the people are afraid that they are unable to cope with such a high property prices. House and land prices are rise and even the middle class Malaysian are facing difficulties to own a home. Based on the economic theory, house price movements are coming from the factors of demographics and economics, such as population, gross domestic product (GDP), labor force, lending interest rate and inflation rate. Thus, in this study the researcher would like to determine the significant of these factors that influence the changes in housing price.