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Prospecting Housing Bubbles in Malaysia

Author

Listed:
  • Hamid Norfiqiri

    (Faculty of Built Environment and Surveying Universiti Teknologi Malaysia)

  • Razali Muhammad Najib

    (Faculty of Built Environment and Surveying Universiti Teknologi Malaysia)

  • Azmi Fatin Afiqah

    (Faculty of Built Environment and Surveying Universiti Teknologi Malaysia)

  • Daud Siti Zaleha

    (Faculty of Built Environment and Surveying Universiti Teknologi Malaysia)

  • Yunus Nurhidayah Md.

    (Faculty of Built Environment and Surveying Universiti Teknologi Malaysia)

Abstract

There have been extensive studies pertaining on bubble detection in literature, though very few investigate the Malaysian residential property market. The inflated housing market, however, has sparked widespread public anxiety and there has been a proliferation of comments and forecasts about the presence of housing bubbles in Malaysia throughout the last decade. The purpose of this paper is to assess the housing bubbles in Malaysia by using empirical models in detecting Malaysian residential property bubbles. This research employed the Markov Switching (MS) model to investigate the housing bubbles for the Malaysian residential property market. The findings revealed Malaysian housing prices to be relatively stable over the period 2010 to 2019, with states of upheaval occurring only during short-lived periods. Overall, Malaysian housing prices were generally steady between 2010 and 2019, albeit this has shifted slowly in recent years as economic turmoil faded. This study provides empirical results to explain the situation of Malaysian house prices in the recent years.

Suggested Citation

  • Hamid Norfiqiri & Razali Muhammad Najib & Azmi Fatin Afiqah & Daud Siti Zaleha & Yunus Nurhidayah Md., 2022. "Prospecting Housing Bubbles in Malaysia," Real Estate Management and Valuation, Sciendo, vol. 30(4), pages 74-88, December.
    • Handle: RePEc:vrs:remava:v:30:y:2022:i:4:p:74-88:n:5
    DOI: 10.2478/remav-2022-0030
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    More about this item

    Keywords

    bubbles; house price; Malaysia; prospecting; Markov switching;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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