A study on the relationship between inflation rates, interest rate and gross domestic product towards property index / Mohd Hazimin Ab. Rahman

The purpose of this paper is to provide an analysis of the relationship between interest rate, inflation rate and gross domestic product towards Property Index in Malaysia. The study use Single Linear Regression and Multiple Linear Regression analysis to consider the effect of macroeconomic factors on Malaysia Property Index over the period 1995 to 2005 .Based on the analysis, it shows that there is significant relationship between interest rate (BLR) and Gross Domestic Product (GDP) towards Property Index (PI).However, there is no significant relationship between inflation rate and Property Index. Property Index reacts negatively with the changes in interest rates and GDP while Property Index not reacts with the changes in inflation rate.