Nik Mohd Sukrri, Nik Amalina and Abd. Wahab, Norazlina and Mohd Yusof, Rosylin (2019) An Enhanced House Price Index Model in Malaysia: A Laspeyres Approach. International Journal of Economic, Management and Accounting, 27 (2). pp. 373-396. ISSN 24621420

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Abstract

The purpose of this study is to develop an enhanced house price index model in Malaysia. At the same time, it attempts to examine the determinants of the existinghouse price index in Malaysia. Review of thecurrent Malaysian House Price Index (MHPI) model shows that this index is constructed based on demand driven variables. Past studies explained that both macroeconomic factors (income levels, interest rates, labor market) and supply factors are included in constructing the house price index. Therefore, this study aims at providing evidence on the determinants of the House Price Index (HPI). This study employs the Autoregressive Distributed Lag Model (ARDL) to discover the short and long-run dynamics between the variables. The study considers the quarterly data from first quarter 2008 to fourth quarter 2015. The analysis shows that supply and institutional factors are significant in determining the HPI. Hence, we propose anew enhanced house price index incorporating new demand and supply variables. By using LaspeyresApproach, the new enhanced HPI has been calculated. The findings revealed that MHPI was found to have a long run significant relationship with employment, Overnight Policy Rate (OPR), Consumer Price Index (CPI), land supply and housing loan while construction cost is not significant in determining the MHPI

Item Type:	Article
Uncontrolled Keywords:	House price index, Malaysia, Laspeyres approach
Subjects:	H Social Sciences > HF Commerce
Divisions:	Islamic Business School
Depositing User:	Mr. Izhar Hj. Hashim
Date Deposited:	29 Oct 2025 11:59
Last Modified:	29 Oct 2025 11:59
URI:	https://repo.uum.edu.my/id/eprint/32543

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