Abstract
Background of the Research: This study examines the factors influencing housing prices in Malaysia. The study explores qualitatively whether there is housing bubble in Malaysia, and whether the housing prices are associated with changes in construction cost, land cost, compliance cost, housing speculation, and mortgage rate. Methodology: The paper is exploratory in nature. The data were collected via focus group discussions among nine property industry players in Malaysia and were analysed using qualitative research methodology. Main Findings: The study reaches the qualitative outcomes that rising housing prices are mainly due to cost factors and housing speculation but may not necessarily be influenced by mortgage rate. The findings suggest that the residential property market is currently not facing housing bubble issue. However the problem is partly due to PTPTN blacklisted borrowers. Conclusion: It is imperative for the Malaysian government to put in further efforts to control housing prices in order to maintain affordability of homeownership.
Highlights
Bank Negara Malaysia [1] announced that Malaysia’s household debt-to-gross domestic product ratio increased to 89.1% as of 2015, one of the highest household debts in the region
The study analyses the important factors that influence housing prices from information obtained from the participants of the focus group discussions (FGDs) which focus on the following topics
3.1.1 What is your opinion on the Malaysian economic conditions?
Summary
Bank Negara Malaysia [1] announced that Malaysia’s household debt-to-gross domestic product ratio increased to 89.1% as of 2015, one of the highest household debts in the region. The downtrend (volume transaction) in major states namely Kuala Lumpur (20.2%), Selangor (-14.1%), Johor (-10.9%) and Pulau Pinang (-13.5%) led to the overall drop in the subsector. Combined, these states formed 49.7% of the total national residential volume [5]. This study examines the factors influencing housing prices in Malaysia. The study explores qualitatively whether there is housing bubble in Malaysia, and whether the housing prices are associated with changes in construction cost, land cost, compliance cost, housing speculation, and mortgage rate. Main Findings: The study reaches the qualitative outcomes that rising housing prices are mainly due to cost factors and housing speculation but may not necessarily be influenced by mortgage rate. Conclusion: It is imperative for the Malaysian government to put in further efforts to control housing prices in order to maintain affordability of homeownership
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
