Factors that affect real estate price in Malaysia / Nur Aisyah Sharol Anuar

In the recent years, Malaysia has experience unsold property due to appreciation in housing price. It led to distress among Malaysian and developer. The increasing in housing price give a great impact to young generation as the housing price is beyond, their ability to acquire. The objective of this study is to examine the relationship between macroeconomics variables with Housing Price Index in Malaysia. There are four macroeconomic variables which are Gross Domestic Product (GDP), Interest Rate (IR), Inflation Rate (INF) and Unemployment Rate (UR) was taken into study, together with Malaysia Housing Price Index (HPI). The data ranges from 1987 to 2017 on yearly basis which is comprises of 30 observations. This study aims to contribute and enhance the execution on scenario planning that related to unpredictable rise of house price in Malaysia as well as assist government and relevant parties in their decision-making process in conjunction of the continuous increasing of housing price is now a major concern. Ordinary Least Square (OLS) method was chosen in this study in order to determine the significant effect between dependent variable and independent variable. Out of independent variables mentioned above, only three variables were found to be positively significant with dependent variables which are interest rate (IR), inflation rate (INF) and unemployment ate (UR) while gross domestic product (GDP) found to be negatively significant with dependent variables.