The macroeconomic determinants of house price index in Malaysia / Nursyamimi Syamilah Othman

The objectives of this study are to identify the macroeconomic determinants of house price index in Malaysia and to study the relationships between gross domestic product, money supply, interest rate and consumer price index towards house price index. This study uses time series data which is collected on quarterly basis from year 2011 until 2019. All the data were obtained from the Department of Statistics Malaysia, National Property Information Centre (NAPIC) and International Monetary Fund. Ordinary Least Squares (OLS) estimated was applied to analyse the model. The findings showed that the gross domestic product is significant with house price index. The result also showed that consumer price index, money supply and interest rates are statistically insignificant with housing price in Malaysia. In order to get better result, future researcher is encouraged to take longer period of time to carry out the study as well as includes other choice of independent variable data that required studying the changing of housing prices because it can influence the result of the study. The study also suggests the government to implement monetary policy to stimulate house demand and monitor the investment among foreign investors.