Macroeconomic determinants of selected Asia housing market

Arshad, Nursuhada; Ismail, Mohd Tahir; Rahman, Rosmanjawati Abdul

doi:10.1063/1.5041675

Cited by 5 publications

(2 citation statements)

References 25 publications

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“…In addition, Michail and Koursaros (2022) suggested that interest rates, inflation, investment, and housing prices had an impact on the credit standing of banks in Cyprus. Laurinavicius et al (2022) demonstrated that the inflation rate led to higher nominal house prices in Vilnius, while Arshad et al (2018) proved that inflation, interest rates, and household consumption significantly influenced housing prices in nine Asian countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The asymmetric impact of macroeconomic variables on Islamic bank home financing in Indonesia

Fakhrunnas,

Chowdhury,

Anto

2023

J. Eko. Keu. Isl.

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Purpose – The study investigates the performance of non-performing financing (NPF) in the housing sector concerning the asymmetric influence of macroeconomic conditions. Methodology – The method of the study adopts nonlinear autoregressive distributed lag (NARDL), while the data of the study ranges from 2014m6 to 2022m2.Finding – The findings reveal an asymmetric relationship between macroeconomic variables and NPF is present both in the short and long run. In addition, the COVID-19 has worsened the NPF of Islamic banks' home financing in some sectors in the short run, while only such financing in the flat and apartment market has suffered during the pandemic in the long run.Implication – The implication of the study suggests that the Islamic banking industry and financial authority need robust risk management and financial policies, respectively, to achieve and maintain the stability of Islamic banks in home financing activities. Originality – The study is original in measuring the impact of macroeconomic influences on Islamic banks' home financing from a nonlinear viewpoint.

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Section: Literature Reviewmentioning

confidence: 99%

The asymmetric impact of macroeconomic variables on Islamic bank home financing in Indonesia

Fakhrunnas,

Chowdhury,

Anto

2023

J. Eko. Keu. Isl.

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“…In considering the panel data, Arshad et al (2018) conducted a study on nine Asian countries, namely, Japan, South Korea, Taiwan, Hong Kong, Singapore, Thailand, Indonesia, Malaysia and China to assess the impact of macroeconomic variables on house price fluctuation. As part of the study, data were collected from the World Bank and the Bank for International Settlements.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of house prices in Malaysia

Kabine

2022

IJHMA

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Purpose This paper aims to empirically examine the relationship between macroeconomic factors and housing prices in Malaysia from 1991 to 2016. Design/methodology/approach This study was based on annual macroeconomic data from 1991 to 2016. For the model that was constructed, house prices were treated as the dependent variable and other variables, namely, the interest rate, the gross domestic product (GDP) and the consumer price index (CPI) as explanatory or regression variables. All these data come from the annual publication of the World Bank’s statistical report. In the meantime, data on house prices have been obtained through the publication of the National Property Information Centre in the form of an index. In the study, the bounds testing approach for cointegration was used because the Engel Granger cointegration tests can be used only if all the series are stationary at first difference. And it is against this background the author could not use it because our variables are a combination of series integrated of orders I (0) and I (1). Findings The results of this study revealed a positive equilibrium relationship in the long run between interest rate, CPI and housing prices and negative for the GDP. In addition, in the short run, housing prices were shown to have a positive relationship with GDP and CPI, but no relationship with the interest rate, based on the assumption that “all other things being equal”. Research limitations/implications The data on economic factors (GDP, RI and CPI) used in this study are secondary and not from the Malaysian Department of Statistics and Economic Studies. Furthermore, the result of this research only reflects the Malaysian reality, and therefore, cannot be generalised to the entire housing market worldwide. Practical implications The result of this study can be used for housing valuation by Malaysian property market players, investors and especially policymakers. Social implications This study’s findings can help Malaysian policymakers to limit the high price fluctuation in the housing industry and help Malaysian citizens to buy their own homes at a reasonable price. Originality/value The contributions of this study are structured around two points. The first is the contribution to the body of knowledge, where the results of the study will contribute to the growing number of literature in the housing sector. Moreover, the second contribution of this document is the strength of its recommendation to policymakers. This is because it analyses only the main macroeconomic determinants (IR, GDP and CPI) that are essential to better influence the housing sector as quickly as possible, as opposed to those that use many variables that could lead to possible specification errors.

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Determinants of housing affordability in the USA

Iqbal,

Brdedthauer,

Decker

2023

IJHMA

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Purpose This study aims to identify the determinants of housing affordability in an effort to inform policy. Design/methodology/approach The authors use econometric analysis to determine variables that impact housing affordability in the USA. Findings The authors find that affordability depends on a number of demographic factors as well as physical characteristics of properties, including average age of homeowner, family size and average dwelling square footage. The authors also find that vacancy rates, increase in house price and median family income also have a significant impact on housing affordability. Additionally, the authors find that households with high-cost burdens are more vulnerable to mortgage rates and property taxes than those with moderate-cost burdens. As a result, changes in economic or policy variables tend to have a disproportionate impact on high-cost-burdened households, and they are more vulnerable to economic and policy shocks. Originality/value To date, the literature has not done a systematic investigation of housing affordability using detailed census data.

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Macroeconomic determinants of selected Asia housing market

Cited by 5 publications

References 25 publications

The asymmetric impact of macroeconomic variables on Islamic bank home financing in Indonesia

The asymmetric impact of macroeconomic variables on Islamic bank home financing in Indonesia

Determinants of house prices in Malaysia

Determinants of housing affordability in the USA

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