Macroeconomics determinant of rental for purpose-built office building / Nur Ain Ahmad Termizi

The purpose of this research is to study regarding the Macroeconomics determinants of rental for purpose built office in Golden Triangle area in Kuala Lumpur. The dependent and independent variable is study in order to get the relationship of macroeconomics and rental of the purpose built office. The rental from the Property Market Report has defined clearly year by year from 1980-2009. The main aim of this research is to identify the macroeconomics factors that contribute to the increase and decrease of office rental in locality. Author was choosing Kuala Lumpur Golden Triangle was choose as a case study because it is comprises the Class A and B office space along Jalan Ampang, Jalan Raja Chulan, Bukit Bintang, Jalan Sultan Ismail and within KLCC area This research was answered the objective of the study in order to investigate the significance of macroeconomics determinant with the rental in property market. The variables were tested by using the Pearson Correlation and Multiple Regression Analysis. Analysis on the secondary data is done through the extracted of economic indicator and rental detail in Property Market. The findings of this study showed several macroeconomics variables is significant with the rental of purpose-built office. The finding is divided according the classes of office. From the correlation the determinant factor is similarly significance with the office rental. The determinants are changes in supply and demand, Base Lending Rate, population loan, changes in sevice sector and occupancy rate. While Multiple Regression Analysis reveals the significance variables to class A office is occupancy, demand and loan while class B office is significance with the demand, occupancy rate and GDP.