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The revisited of Malaysian house price index

Afiqah, Norshazwani and Mohd Diah, Mohd Lizam and Omar, Abdul Jalil The revisited of Malaysian house price index. In: International Conference on Technology Management, Business and Entrepreneurship 2012 (ICTMBE 2012), 18-19 December 2012, Renaissance Melaka Hotel, Melaka.

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Abstract

Price of residential properties plays a very important role in the economics of developed countries. It is an essential factor for individual or household to decide on selling and buying properties and to invest in the direct property market. Of these reason, the Valuation and Property Services Department (VPSD) has constructed the Malaysian House Price Index (MHPI). However, there is no other house price index that could be used as a comparison to the existing MHPI. Thus, parties that have interest in real estate market could not compare the house price index. In this study, an alternative house price index called as the hypothetical price index is constructed. Method used to construct the hypothetical price index is the hedonic method. This method will be performed by using regression technique in which it comprises both of the dependent and independent variables. The hypothetical price index is constructed by using the time-variant approach. Variables used in the model are properly selected and regression with respect to both functional form and independent variables should also be defined correctly in order to obtain unbiased estimates for the house price index. The hypothetical price index shows a same trend as the MHPI. Only at certain quarters, the index is different. It might be due to the different sample of data. It is hoped that this study could contribute in producing an alternative house price index to be used as one of the reference in monitoring house price changes.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: house price index; hedonic method
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Technology Management and Business > Department of Real Estate Management
Depositing User: Ms Aryanti Ahmad
Date Deposited: 07 Jan 2013 03:06
Last Modified: 07 Jan 2013 03:06
URI: http://eprints.uthm.edu.my/id/eprint/3381
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