Boom-Bust Housing Price Dynamic: The Case of Malaysia

Volume: 7 Number: 4 December 1, 2017
  • Yip Chee Yin
  • Woo Kok Hoong
  • Oon Kam Hoe
  • Nabihah Binti Aminaddin
  • Nurfadhilah Binti Abu Hasan
EN

Boom-Bust Housing Price Dynamic: The Case of Malaysia

Abstract

This paper aims to differentiate housing price bubble from a housing price cycle through the investigation and analysis of the price volatility driving components using graphical analysis, cointegrating regression and mean reversion regression. The findings suggest that Malaysia is not facing any housing bubble at the point of time since there is no sharp upsurge and rapid fall of house prices. The recent upswing in house prices followed by a gradual coming down rather reflect a severe price cycle which started in 2009. The peak was observed in 2013 and since then has reversed into a continuous but gradual fall. The cycle is persisting and has not bottomed out yet. Our results show that the main reasons for the price booms are speculative herd instinct and lax in house loan lending policy before 2012. Subsequently the various anti cooling measures by the Malaysian government have helped to control price expansion.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Yip Chee Yin This is me

Woo Kok Hoong This is me

Oon Kam Hoe This is me

Nabihah Binti Aminaddin This is me

Nurfadhilah Binti Abu Hasan This is me

Publication Date

December 1, 2017

Submission Date

December 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 4

APA
Yin, Y. C., Hoong, W. K., Hoe, O. K., Aminaddin, N. B., & Hasan, N. B. A. (2017). Boom-Bust Housing Price Dynamic: The Case of Malaysia. International Journal of Economics and Financial Issues, 7(4), 132-138. https://izlik.org/JA26BS77MM
AMA
1.Yin YC, Hoong WK, Hoe OK, Aminaddin NB, Hasan NBA. Boom-Bust Housing Price Dynamic: The Case of Malaysia. IJEFI. 2017;7(4):132-138. https://izlik.org/JA26BS77MM
Chicago
Yin, Yip Chee, Woo Kok Hoong, Oon Kam Hoe, Nabihah Binti Aminaddin, and Nurfadhilah Binti Abu Hasan. 2017. “Boom-Bust Housing Price Dynamic: The Case of Malaysia”. International Journal of Economics and Financial Issues 7 (4): 132-38. https://izlik.org/JA26BS77MM.
EndNote
Yin YC, Hoong WK, Hoe OK, Aminaddin NB, Hasan NBA (December 1, 2017) Boom-Bust Housing Price Dynamic: The Case of Malaysia. International Journal of Economics and Financial Issues 7 4 132–138.
IEEE
[1]Y. C. Yin, W. K. Hoong, O. K. Hoe, N. B. Aminaddin, and N. B. A. Hasan, “Boom-Bust Housing Price Dynamic: The Case of Malaysia”, IJEFI, vol. 7, no. 4, pp. 132–138, Dec. 2017, [Online]. Available: https://izlik.org/JA26BS77MM
ISNAD
Yin, Yip Chee - Hoong, Woo Kok - Hoe, Oon Kam - Aminaddin, Nabihah Binti - Hasan, Nurfadhilah Binti Abu. “Boom-Bust Housing Price Dynamic: The Case of Malaysia”. International Journal of Economics and Financial Issues 7/4 (December 1, 2017): 132-138. https://izlik.org/JA26BS77MM.
JAMA
1.Yin YC, Hoong WK, Hoe OK, Aminaddin NB, Hasan NBA. Boom-Bust Housing Price Dynamic: The Case of Malaysia. IJEFI. 2017;7:132–138.
MLA
Yin, Yip Chee, et al. “Boom-Bust Housing Price Dynamic: The Case of Malaysia”. International Journal of Economics and Financial Issues, vol. 7, no. 4, Dec. 2017, pp. 132-8, https://izlik.org/JA26BS77MM.
Vancouver
1.Yip Chee Yin, Woo Kok Hoong, Oon Kam Hoe, Nabihah Binti Aminaddin, Nurfadhilah Binti Abu Hasan. Boom-Bust Housing Price Dynamic: The Case of Malaysia. IJEFI [Internet]. 2017 Dec. 1;7(4):132-8. Available from: https://izlik.org/JA26BS77MM