What drives the property prices ? the Malaysian case

Mohamad, Shaifulfazlee and Masih, Mansur (2017): What drives the property prices ? the Malaysian case.

Abstract

The aim of this paper is to investigate the drivers of the property prices. In particular, the paper seeks to identify the lead-lag relationship between the property prices and macroeconomic variables. Malaysia is taken as a case study. The standard time series techniques are employed for the analysis. The findings tend to indicate that inflation rate followed by exchange rate are the drivers of the property prices in Malaysia but not the interest rate or GDP. This is an important finding since the results would help the policy makers take steps to stabilize the property prices at least in the Malaysian context.

• Item Type: MPRA Paper
• Language: English
• Keywords: property prices, macrovariables, lead-lag, Malaysia
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C58 - Financial Econometrics; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy

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