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A Study on Housing Price in Klang Valley, Malaysia

Author

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  • Paul Anthony Mariadas
  • Mahiswaran Selvanathan
  • Tan Kok Hong

Abstract

The main aim of this study is to measure the factors influencing housing price in Klang Valley, Malaysia. This paper examines empirically whether the increasing trend in the Malaysian housing price is associated to changes in the population, construction cost, housing speculation, and inflation rate. The paper is exploratory in nature. The data is collected via questionnaire survey form distributed to youngest respondents in the sample area which is Klang Valley region. Each single elements are calculated its average index respect to few level of influence under respondents opinion. The index will then treated as influencing level of the factors. The paper delivers empirical outcomes that the population, construction cost and housing speculation are the main factors of housing prices. However, fluctuations in housing prices could not necessarily be influenced by the inflation rate. The overall result of this paper strongly recommends that housing price in the Malaysian residential property market is increasing continuously. Therefore, efforts to control the hike in housing price is needed by government and policy controllers in order to maintain the affordable to own a house in Malaysia.

Suggested Citation

  • Paul Anthony Mariadas & Mahiswaran Selvanathan & Tan Kok Hong, 2016. "A Study on Housing Price in Klang Valley, Malaysia," International Business Research, Canadian Center of Science and Education, vol. 9(12), pages 103-109, December.
    • Handle: RePEc:ibn:ibrjnl:v:9:y:2016:i:12:p:103-109
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    References listed on IDEAS

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    1. Eric J. Levin & Robert E. Wright, 1997. "Speculation in the Housing Market?," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1419-1437, August.
    2. Wa'el Alaghbari & Azizah Salim & Kamariah Dola & Abang Abdullah Abang Ali, 2012. "Identification of significant factors influencing housing cost in Yemen," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 5(1), pages 41-52, March.
    3. Ali Anari & James Kolari, 2002. "House Prices and Inflation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 30(1), pages 67-84.
    4. Barakova, Irina & Bostic, Raphael W. & Calem, Paul S. & Wachter, Susan M., 2003. "Does credit quality matter for homeownership?," Journal of Housing Economics, Elsevier, vol. 12(4), pages 318-336, December.
    5. Levin, Eric J. & Wright, Robert E., 1997. "The impact of speculation on house prices in the United Kingdom," Economic Modelling, Elsevier, vol. 14(4), pages 567-585, October.
    6. Clara Mulder, 2006. "Population and housing," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 15(13), pages 401-412.
    7. Yongzhou Hou, 2010. "Housing price bubbles in Beijing and Shanghai?," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 3(1), pages 17-37, March.
    8. James E. Larsen, 2010. "The impact of buyer‐type on house price," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 3(1), pages 60-68, March.
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    Cited by:

    1. Sisman, S. & Aydinoglu, A.C., 2022. "A modelling approach with geographically weighted regression methods for determining geographic variation and influencing factors in housing price: A case in Istanbul," Land Use Policy, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    housing price-population; housing price-construction cost; housing price-housing speculation and Price inflation;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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