The factors influencing house prices in Malaysia / Fariss Indera Din

This study investigates the factors influencing the house prices in Malaysia. Several issues are highlighted in thus study where there is the interest rate in Malaysia is continuing to growth, many people need more houses to live in but the production of housing is slow due to the many laws, regulations and procedures related to building of houses. The purpose of this study is to have a clear view on the relationship between dependent variable housing price in Malaysia and independent variable which are inflation, gross domestic product and interest rate. In Malaysia, lack of affordable options to own property forces many Malaysians into the rental market and informal settlements, which is drastically increasing due to interest rate. The lack of adequate number of affordable housing projects in Malaysia also has been an acute problem for a long time. The lack of adequate number of affordable housing projects in Malaysia also has been an acute problem for a very long time. It is a positive notion that new projects on developing affordable houses are being undertaken in the recent times, but the number of affordable houses is still way low compared to the massive public demand. Property prices are now sky-high and the middle-income wage workers are compelled to go for rental homes. The government also tried to helps the lower to middle income class people buy a home by introducing the My First Home loan. All data collected quarterly start from year 2010 until 2017. The data has been analysis by using E-view 9 to make the unit root test, multiple regression analysis, correlation analysis and test on assumption.