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Study of property market in Johor: an investigation of property bubble phenomenon

Tan, Jia Phing and David , Martin (2012) Study of property market in Johor: an investigation of property bubble phenomenon. In: International Conference of Technology Management, Business and Entrepreneurship 2012 (ICTMBE2012), 18-19 December 2012, Renaissance Hotel, Melaka, Malaysia.

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Abstract

Home is a basic necessity to provide people with shelter and comfort. Most of the time, housing investment undeniably constitutes the single most expensive investment for most families. For the past fifteen years, housing property in Malaysia has underwent tremendous price increment. However, once the housing price deviates too much from its fundamental value, it may give rise to problems and even generates subprime crisis. This paper discusses the possible existence of property bubble in Johor and what is the state of the current property market in relation to the property bubble phenomenon in Johor. The property bubble is investigated based on different districts by incorporating the examination of macro-economic indicators with micro-measures, using a comprehensive set of indicators to test the bubbles. The analysis applies to residential property, that is single-storey terrace type and double-storey type. The study is done on three districts in Johor using the Rational Expectional Model and Fama-French Three Facotr Model. Generally, the study focuses on the existence of housing bubble that stemmed directly from the housing price and the expected housing price in the study area. Besides, this paper also identifies the factors that contribute to the property bubble phenomenon. In conclusion, the findings of this study strongly suggest that the existence of housing bubbles in the Johor residential property market is getting stronger.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: housing bubble; subprime crisis; residential property; housing price
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Technology Management and Business > Department of Real Estate Management
Depositing User: Normajihan Abd. Rahman
Date Deposited: 22 Mar 2013 08:16
Last Modified: 21 Jan 2015 07:55
URI: http://eprints.uthm.edu.my/id/eprint/3447
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