scholarly journals RESIDENTIAL PROPERTY PRICE HIKE AND SPECULATION

2019 ◽  
Vol 17 (9) ◽  
Author(s):  
Razali Haron ◽  
Khairunisah Ibrahim
Keyword(s):  
Cointegration Analysis ◽  
Residential Property ◽  
Property Market ◽  
Market Segments ◽  
Factors Influencing ◽  
Property Prices ◽  
Long Run ◽  
Determining Factors ◽  
Property Price ◽  
Price Hike

This study analyzes the behaviour of property price in Malaysia by examining factors influencing the residential property prices. It aims to determine whether property prices hike in Malaysia can be explained by the fundamental factors or it is due to other unexplained factors, such as speculation. Findings from the study reveal that most of the factors did have significant influence on property price. In addition, the cointegration analysis indicates that the property price and its factors are cointegrated for all property market segments across states. This implies the presence of a long run relationship between the property price and its determining factors, despite slow adjustment of property price towards equilibrium in the long run. This study concludes that the residential property price hike in Malaysia is impacted by fundamental factors and is not speculative in nature.

scholarly journals Aging and Property Prices: A Theory of Very-Long-Run Portfolio Choice and Its Predictions on  Japanese Municipalities in the 2040s

2017 ◽  
Vol 16 (3) ◽  
pp. 48-74 ◽  
Author(s):  
Yoshihiro Tamai ◽  
Chihiro Shimizu ◽  
Kiyohiko G. Nishimura
Keyword(s):  
Portfolio Choice ◽  
Transition Economy ◽  
Aging Population ◽  
Residential Property ◽  
Price Inflation ◽  
Land Prices ◽  
Property Prices ◽  
Long Run ◽  
Property Price ◽  
Estimate Property

In this paper we investigate the effect of aging population on property (land) prices. A theory of very-long-run portfolio choice is developed for a transition economy from young and growing to rapidly aging population and applied to estimate property price inflation in Japanese municipal markets. The results are stunning. The simulation results in which income factors are assumed to be fixed at the 2005-10 growth level suggest that the average residential property price (land price) in the Japanese municipalities may decrease by as much as 19 percent from the present to 2020, 24 percent to 2030, and 32 percent to 2040.

scholarly journals The Comparative Analysis Of Asking And Traded Price Indices In Different Floor Area Subsegments Of The Residential Property Market

2015 ◽  
Vol 23 (3) ◽  
pp. 14-25
Author(s):  
Sebastian Kokot ◽  
Marcin Bas
Keyword(s):  
Comparative Analysis ◽  
Empirical Analysis ◽  
Residential Property ◽  
Price Indices ◽  
Property Market ◽  
Floor Area ◽  
Property Price

Abstract There are several acknowledged methods for determining residential property price indices. However, all of them have their drawbacks and advantages and reflect the averaged real movements of prices with varying accuracy. The paper attempts to answer the question: How faithfully do indices based on asking prices reflect the movements of traded prices? As a result we will find out whether, in the situation when property price indices cannot be determined, asking price based indices can be used instead. The paper specifies theoretical and practical aspects of constructing residential property price indices on the basis of asking and traded prices. It also contains an empirical analysis of these two index types.

scholarly journals Macroeconomic and Demographic Determinants of Residential Property Prices in Malaysia

2018 ◽  
Vol 21 (2) ◽  
pp. 71-96 ◽  
Author(s):  
Ivan D. Trofimov ◽  
Nazaria Md. Aris ◽  
Dickson C. D. Xuan
Keyword(s):  
Affordable Housing ◽  
Household Income ◽  
Urban Areas ◽  
Housing Demand ◽  
Residential Property ◽  
Property Prices ◽  
Consumer Prices ◽  
Property Price ◽  
Price Growth ◽  
Causality Tests

Abstract This paper studies the relationship between residential property prices and macroeconomic and demographic determinants in Malaysia. In the years following the Asian financial crisis, property prices in Malaysia rose substantially, resulting in an affordability crisis and ultimately policy responses to the problem. Using unit root, Johansen-Juselius cointegration, VECM-based Granger causality tests and variance decomposition, and considering quarterly data that covers 2000-2015 period, we established that residential property price growth is principally driven by strong demographic performance and population growth and is backed by the low interest rate environment and rising consumer prices. Household income and level of GDP do not appear to contribute to property price growth. Certain distortions and asymmetries in the Malaysian real estate markets are documented: oversupply in the higher price segment of the market coupled with the lack of affordable housing in the lower price segment; household income growth lagging behind GDP and property price growth, thereby dampening housing demand; growing rental markets in major urban areas as a result of the affordability crisis; and a quality mismatch between buyers’ preferences and housing supply.

Impacts of Indoor Environmental Quality (IEQ) Elements on Residential Property Market: A Review

2015 ◽  
Vol 73 (5) ◽  
Author(s):  
Asmma’ Che Kasim ◽  
Megat Mohd Ghazali Megat Abdul Rahman ◽  
Maryanti Mohd Raid
Keyword(s):  
Environmental Quality ◽  
Market Price ◽  
Residential Building ◽  
Green Building ◽  
Real Estate Market ◽  
Residential Property ◽  
Indoor Environmental Quality ◽  
Property Market ◽  
Property Price ◽  
The Impact

Indoor environmental quality (IEQ) is among six criteria of Green Building Index (GBI) that need to be achieved by building owner in order to recognize their building as ‘green’ in Malaysia. The benefit of IEQ is to create conducive environment for human health. Besides influenced their overall image, leasing and resale value of the buildings, does indoor environmental quality (IEQ) features will give impact on real estate market in terms of price and rental particularly for residential building property? Therefore, this paper will review the broad literature regarding the impacts of indoor environmental quality (IEQ) for residential building property and its implication to towards property price and rental. The early hypothesis of this paper anticipates that indoor environmental quality (IEQ) features will indirectly increase residential property market price and rental. From this paper, it is hope that the positive impacts of these features will encourage building owners, developers and other main development actors to put these criteria into the same consideration as other criteria in GBI as one of the way to compensate the impact of the building towards economic, environment and social.

scholarly journals Empirical Analysis of Factors Influencing Residential Property Prices in Malaysia

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Nazaria Md Aris
Keyword(s):  
Consumer Price Index ◽  
Residential Property ◽  
Causality Test ◽  
Vector Error Correction ◽  
Factors Influencing ◽  
Property Prices ◽  
Augmented Dickey Fuller ◽  
Residential Properties ◽  
One Year ◽  
Year 2000

This study concerns the factors influencing the prices for residential properties in Malaysia as well as their relationship towards residential property prices. The data collected and analysed in this research is from quarter one year 2000 to quarter four year 2015. Various determinants have been identified namely country population, Gross Domestic Product, household income, inflation and lending rates in this research. The time-series analysis methodologies adopted in this research are the Augmented Dickey-Fuller (ADF) and Philip-Perron (PP) test for unit root, Johansen and Juselius Cointegration Test, Granger Causality Test for Vector Error Correction Model (VECM) and also Variance Decomposition (VDC).  In this study, these two variables, population growth (POPGROWTH) and inflation measured by the consumer price index (CPI) were found has a significant and positive effect towards the price of residential properties in Malaysia.

scholarly journals THE INFLUENCE OF GDP, INTEREST RATE, WAGE, INFLATION AND EXCHANGE RATE ON RESIDENTIAL PROPERTY PRICE IN INDONESIA

2019 ◽  
Vol 17 (9) ◽  
Author(s):  
Badrud Duja ◽  
Heri Supriyanto
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Residential Property ◽  
Property Prices ◽  
The Us ◽  
Property Price ◽  
Us Dollar ◽  
The Government

Over the past years, Indonesia’s economic growth has been recorded among the top developing countries. The economic growth is believed to contribute to the increase on residential property prices. The main objective of this study is to analyse the influence of determinants of residential property prices in Indonesia by examining the dynamic relationships of residential property prices reflected through the Residential Property Price Index (RPPI) with Gross Domestic Product (GDP), investment interest rates, wages, inflation and the exchange rate against the US dollar using secondary data over a period of thirteen-years between 2002Q1 and 2014Q4. By applying the Engle-Granger co-integration testand the error correction model, this research aims to see the relationship between the variables both in the short- and long-term. The results of the study indicated that macroeconomic factors that were significantly related to Indonesian residential property prices were GDP, wages, inflation, and exchange rates against the US dollar, while the investment interest rate was not included in these factors. Furthermore, based on the results of the regression analysis on research data, government policy in setting minimum wage standards has the greatest impact on residential property prices in the property sector in Indonesia. Thus, the results of this research are expected to provide the government with better viewpoints that will assist them in enacting better policies in the residential property sector.

scholarly journals Pengaruh KPR terhadap Keterjangkauan Harga Properti Residensial

2019 ◽  
Vol 3 (3) ◽  
pp. 182-197
Author(s):  
Pihri Buhaerah
Keyword(s):  
Public Housing ◽  
Residential Property ◽  
Research Approach ◽  
Ardl Model ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Property Prices ◽  
Property Price ◽  
Price Growth ◽  
Bank For International Settlements

AbstractThis paper describes and examines the linkage of house mortgages on residential property price growth in Indonesia by using qualitative and quantitative research methods. The qualitative research approach is used to elaborate descriptively the role of house mortgages on residential property prices. To strengthen it, this study then employs one of time series regression analyses namely autoregressive distributed lag (ARDL) model for the period of 2002Q1-2017Q4. To achieve the objective of this study, data was collected from secondary sources such as Bank for International Settlements (BIS), Bank Indonesia (BI), and Central Statistics Agency (BPS). The qualitative approach shows that under lack of land banking and public housing zones, the expansion of house mortgages affect positively residential property prices both for private and public housing.  The argument has been confirmed from regression analysis by using the ARDL model. The estimation results using the ARDL model show that there is a positive and significant relationship between house mortgage on residential property price growth both in the long-run and in the short-run.  Keywords: house mortgage, property residential prices, land, ARDL modelJEL Classification: C22, E51, G21  AbstrakStudi ini membahas secara deskriptif dan empiris peran pembiayaan pemilikan rumah terhadap harga properti residensial di Indonesia dengan menggunakan metode penelitian kualitatif dan kuantitatif. Pendekatan kualitatif digunakan untuk menggambarkan secara deskriptif peran pembiyaan pemilikan rumah terhadap harga properti residensial. Selanjutnya, untuk memperkuat argument tersebut, studi ini kemudian melibatkan salah satu teknik analisis regresi data runtun waktu yaitu model autoregressive distributed lag (ARDL) untuk periode 2002Q1-2017Q4. Untuk mencapai tujuan penelitian, data dikumpulkan dari beragam sumber data sekunder seperti Bank for International Settlements (BIS), Bank Indonesia (BI), dan Badan Pusat Statistik (BPS). Hasilnya, dengan menggunakan pendekatan kualitatif menunjukkan bahwa tanpa pelembagaan bank tanah dan zonasi khusus perumahan rakyat, skema pembiayaan kepemilikan rumah hanya akan melambungkan harga properti residensial. Argumen ini juga terkonfirmasi dari analisis regresi dengan menggunakan model ARDL. Hasil estimasi dengan menggunakan model ARDL menunjukkan bahwa terdapat hubungan jangka panjang antara kredit kepemilikan rumah dengan harga property residensial baik untuk jangka pendek maupun jangka panjang.  Kata Kunci: Kredit pemilikan rumah, harga properti residensial, tanah, model ARDLJEL Classification: C22, E51, G21 

scholarly journals EXCHANGE RATE AND PERFORMANCE OF THE RESIDENTIAL PROPERTY MARKET IN KENYA

2019 ◽  
Vol 8 (3) ◽  
pp. 88-100
Author(s):  
Charles Gitiya Njoroge ◽  
Willy Muturi ◽  
Oluoch Oluoch
Keyword(s):  
Exchange Rate ◽  
Optimal Solution ◽  
Secondary Data ◽  
Residential Property ◽  
Property Market ◽  
Solution Vector ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run

The purpose of the study was to establish the effect of exchange rate on the performance of the residential property market in Kenya. The study used secondary data that was accumulated using secondary data collection sheet from first quarter of 2005 to fourth quarter of 2018. The study conducted several test statistics and diagnostic tests in order to achieve the most optimal solution. Vector error correction model and auto-regressive distributed lag model were employed to test the hypothesis in the short run and long run respectively. The results found out that exchange rate had a negative effect on performance of residential properties in Kenya in both the short run and positive effect in long run. The study has narrowed down the research gap brought about by the conflicting emprical, theoretical and conceptual literature with regard to the effect of exchange rate on performance of residential property market in Kenya. Key Words: Exchange Rate, Performance, Residential Property

scholarly journals Intrinsic bubbles and Granger causality in the Hong Kong residential property market

2019 ◽  
Vol 13 (1) ◽  
Author(s):  
Ting Lan
Keyword(s):  
Hong Kong ◽  
Granger Causality ◽  
Price Index ◽  
Residential Property ◽  
Property Market ◽  
Speculative Bubbles ◽  
Property Price ◽  
Show Evidence ◽  
Causality Tests ◽  
Housing Bubbles

Abstract This study uses the intrinsic bubbles detection method to identify housing bubbles in the Hong Kong residential property market. By using sample period data from 1993 to 2019, the empirical results show evidence of intrinsic bubbles. Based on the unit root and co-integration tests, I found that there are no rational speculative bubbles in the Hong Kong residential property market. Furthermore, by using the Granger causality tests of the corresponding asymmetric VECM specification, there is no causality from lagged changes in the rental price returns to changes in the property price returns. However, there is strong evidence to show that changes in the property price index returns can Granger cause changes in the rental price index returns.

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