Determinants of the housing price in Malaysia

The purpose of the study is to determine the significant the relevance between Inflation Rate, Interest Rate and Gross Domestic Product with Malaysian Housing Price Index during the period from Quarter 1 in year 2010 until Quarter 2 in year 2017. The analysis are conducted using Multiple Linear Regression to get the result. Unit root test and diagnostic test were being used to test whether it is stationary or non-stationary. The multiple linear regression result shows that any of the independent variables were significant relationship towards dependent relationship since the F-value and P-value were 9.040133 and 0.000286 respectively. Therefore, the result is reject the null hypothesis because F-statistic is statistically significant at 1% of significant level. Based on the result, Inflation Rate is not significant and have negative correlated with Malaysian Housing Price Index. Interest Rate and Gross Domestic Product have significant relationship towards Malaysian Housing Price Index.