A study on the relationship between interest rate (BLR), inflation rate and gross domestic product (GDP) with the price of houses in Malaysia / Nik Noor Azleen Ramly

The focus of this study is to see the relationship between interest rates (BLR), inflation rates and gross domestic product (GDP) on the price of houses in Malaysia within 10 years starting from 1996 to 2005. This study only focuses on terrace house. This study wants to know what will happen to house price when facing with fluctuation of interest rates (BLR), movement of inflation rates and GDP over the years. Other objectives of this study are to analyze which one of these three independent variables (BLR, Inflation and GDP) has the most significant relationship and the least significant relationship with the house price. Research Methodology that has been used in this study to analyze the hypothesis is Multiple Linear Regression Model. The result shows that GDP and BLR have positive relationships with the House Price Index whereas inflation rate shows there is no significant relationship with House Price Index.