MATEC Web Conf.
Volume 66, 2016The 4th International Building Control Conference 2016 (IBCC 2016)
|Number of page(s)||6|
|Published online||13 July 2016|
The Relationship between Housing Finance and Macroeconomics Variables in Malaysia
1 Department of Estate Management, Faculty of Architecture, Planning & Surveying, University Teknologi MARA, Seri Iskandar Campus, Seri Iskandar, 32610 Perak
2 Department of Estate Management, Faculty of Built Environment, University Malaya, 50603 Kuala Lumpur
3 Department of Estate Management, Faculty of Architecture, Planning & Surveying, University Teknologi MARA, 40450 Shah Alam, Selangor
Housing finance is one of the factors that contribute in the overall economy growth of the country. The purpose of this paper is to analyse the relationship of housing finance variable and the macroeconomic variables in Malaysia. By adopting time series technique of Vector Auto regression (VAR) and Impulse Response to determine the dynamic relationship between the macroeconomic and housing finance variable. The cointegration result shows that there exists a long run relationship between the macroeconomic variable and housing finance variable. The finding from impulse response function indicates that Gross Domestic Product (GDP) response positively to the Primary Mortgage Market (PMM), which shows that during the good economy there are more housing loan extends by the banking institution. Meanwhile, interest rate response negatively to Secondary Mortgage Market (SMM), which implies that during the financial crisis, more housing loan sold to the Secondary Mortgage Market as one of the measure by the government to increase liquidity in banking institutions. As a conclusion, there is presence of relationship between the variable which change in one variable will affect the other variable in the long run.
© Owned by the authors, published by EDP Sciences, 2016
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.