A study on housing loan demand in Malaysia / Nor Hasliani Othman

To most individuals house represents the largest single investment item of a lifetime. This is especially true as family incomes increase and housing viewed less as a basic consumption and more as a key to ® secure future. Th® objectives of this research are to identify th® relationship between independent variable (interest rate, land market value, and real income) and dependent variable (housing loan demand) and to measure the impact of change in interest rate, land market value, and real income towards housing loan demand performance. The researcher test th® data by using STATA which is include five test descriptive statistic, stationary test, tong run relationship, short run relationship and stability test. In short run its shows that loan are granger cause land and income. No causality relationship between total interest rat® and housing loan in Malaysian short run relationship. In long run relationship, interest rate and real income have positive relationship with housing loan demand while the researcher found negative relationship occurs between land market value and housing loan in Malaysia. Further research on the topics of this study is recommended. This is important especially as Malaysia as developing country to become a developed nation. Home ownership issue in Malaysia can solve when mor® research is conducted in this topic.