Open AccessDeterminants of Housing Prices
Publication year - 2022
Publication title -
asian journal of research in education and social sciences
Language(s) - English
Resource type - Journals
ISSN - 2682-8502
DOI - 10.55057/ajress.2022.3.4.9
Subject(s) - economics , multicollinearity , gross domestic product , inflation (cosmology) , interest rate , unemployment , price index , inflation rate , chow test , macroeconomics , monetary economics , real gross domestic product , consumer price index (south africa) , federal funds , econometrics , monetary policy , regression analysis , physics , machine learning , theoretical physics , computer science
The purpose of this research is to study the determinants of housing prices in Malaysia and Singapore. The research analyses the relationship between the housing price index with four other macroeconomic variables which are gross domestic product, interest rate, inflation rate and unemployment rate. The methodology that is used in this research is the multiple linear regression analysis. This research also performs diagnostic checking through normality test and multicollinearity test. The data is collected from the World Bank and the Bank for International Settlements covering the period of 1979 to 2019. The results revealed that for both Malaysia and Singapore, gross domestic product is significantly related to housing price. Apart from the relationship between inflation rate to housing price, Malaysia and Singapore’s macroeconomic variables (GDP, interest rate, and unemployment rate) are similarly related to housing price. Policymakers in charge of macroeconomic policies should take heed that these macroeconomic indicators have an impact on housing price, as shelter is one of the basic needs of citizens.