Analysing of macro-economic factors on Malaysian house price index (MHPI)

The increasing of housing price in Malaysia has become prominent issue from time to time in recent days. This research paper analyzed the factors that contribute to the changes of Malaysian Housing Price Index (MHPI) from 2009 to 2019. The research study applies the Multiple Regression Analysis (MRA) on an economic model comprising MHPI as the dependent variable and five independent variables consisting of the macro-economic factors such as population growth, gross domestic product from construction, inflation rate, unemployment rate and overnight policy rate. The findings are benefited to various parties such as households, policy maker, investor, and also for a future researcher. In line with the government aspiration to provide an affordable housing in the property market, it required paradigm shifts in wide range of aspects such as from the financing policy, to the human right. In needs to prudently planned and strategized to integrates with the housing supply factors in order to harmonized the property industry in Malaysia.