State of the current property market in relation to the property bubble phenomenon in Johor
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 bu...
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| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/5804/ http://eprints.uthm.edu.my/5804/1/3._tan_jia_phing.pdf |
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| Summary: | 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 Factor 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. In conclusion, the findings of this study strongly suggest that the existence of housing bubbles in the Johor residential property market is getting stronger. |
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