Online ISSN: 2515-8260

The Impact Of Government Policies On House Prices In Malaysia: An Autoregressive Distributed Lag (ARDL) Cointegration Approach

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Paul Anthony Mariadas1 , Hussin Abdullah 2 , Norehan Abdullah 3

Abstract

Abstract: This paper examines the impact of government policies on house prices in Malaysia. In addition, this study also includes the role of gross domestic product, interest rate and total population as emphasised by the Life Cycle and Overlapping Generation Models. This study used an annual time series data from 1988 to 2017. By using autoregressive distributed lag (ARDL) framework, we develop a model of house price determination with a focus on government policy. This study revealed that PR1MA has a positive association with house prices. On the other hand, MM2H is not a primary contributor to the house prices in Malaysia.

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