The determinants of housing price in Malaysia

The purpose of this study is to examine the relationship between macroeconomic variable with housing price in Malaysia. This study is to examine whether the increasing trend in Malaysia housing price is related to the changes in Gross Domestic Product, Inflation Rate, Interest Rate, Population Growth and Household Income. Over the past few years, the Malaysia housing price has experienced significant price expansion. This study explores the relationship between housing prices towards independent variable for 30 observations on yearly basis from year 1988 until 2017 using secondary data for each variable. In the process of findings in this study there are a few types of analysis were tested using E-Views Version 9.0 such as Multiple Linear Regression analysis. This study is useful for buyer, house developer, investor, bank and others to know which factors to account for in housing investment decision. This study can also serve as a guide for the government and economic policy maker in stabilizing the residential housing price in Malaysia.