Housing Policy Case Study

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BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS (ECONOMY) FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA 3rd DRAFT FACTORS AFFECTING MALAYSIAN HOUSE PRICE INDEX. DATE: 24 / 10 / 2014 SHAZLIANA BINTI NUAR PARAS KHAN 2011129851 BM2306A CHAPTER 1 1.0 INTRODUCTION First chapter will discuss the background of the study. Next, in this chapter also includes a problem statement, research objectives, research questions, significance, scope and limitations of the study. Definition of terms is also included in this section for more understanding and since it will make investigation run smoothly. 1.1 Background of Study. House prices play an important role in welfare of the populations. In most countries in the world, housing is generally…show more content…
Nonetheless, in recent years, the policy are seen as not being able to help people, especially the younger generation to have a home. This situation raises concerns for the people, generally, particularly those who earn RM3000 and below to have a home for own convenience and to assure future. Thus, study related to macroeconomic factors affecting housing prices is important. This is because; these factors can help relevant parties to handle the situation- to control housing price. Furthermore, this research also needed to get more knowledge about the factors that are significantly contributing the house price changes in Malaysia. The researcher recognized that Gross Domestic Product Growth; Inflation; and Base Lending Rate were contributed to the changes in house price. By using the house price index as the main indicator it is helpful in completing as the index gathered review through the changes in house…show more content…
It is used to indicate trends in house prices, as well as an analytical tool to estimate changes to housing affordability and foreclosure rates. According to Eloisa (2000), the data of house price index data usually is used by public and policymakers in order to monitor house price developments closely. 2) Gross Domestic Product (GDP) Growth Rate. GDP can be determined in three ways, all of which should give the same result. They are the production approach, the income approach, or the expenditure approach. In this research, the way of estimating GDP is by using the second approach- income approach. In this approach, an economist believes that the money each family brings home is a better way to evaluate the economic strength of the country. Therefore, this method will measure the annual incomes of all individuals in a country. GDP calculated in this way is sometimes called as gross domestic incomes (GDI). However, by using this method, there are few adjustments must be made to arrive the GDP. According to Money Crashes website, indirect taxes must minus tax subsidies to arrive at market prices. Then, depreciation of asset must be added to get the GDP

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