Factors affecting the house price among Kuala Lumpur, Selangor and Johor / Muhammad Areef Abdul Khani and Siti Aishah Mohd Shafie

• Main Authors: Abdul Khani, Muhammad Areef, Mohd Shafie, Siti Aishah
• Format: Book Section
• Language: English
• Published: Faculty of Computer and Mathematical Sciences 2023
• Subjects: Consumption. Demand (Economic theory)
• Online Access: https://ir.uitm.edu.my/id/eprint/93960/1/93960.pdf; https://ir.uitm.edu.my/id/eprint/93960/

Housing is essential for human development and productivity. The price and suitability of houses depend on factors like location and amenities. Economic factors impact housing prices, and good housing improves health and reduces medical needs. Affordability and market sentiment are crucial for a balanced housing sector. The average housing price in Malaysia has seen a significant increase over the past decade, making it challenging for people to afford homes, especially considering stagnant salary growth. The ratio of house prices to average income is a crucial indicator of affordability. This disparity has implications for economic growth, as oversupply can occur due to the inability to afford housing. Therefore, it is crucial to study the factors contributing to house prices in Kuala Lumpur, Selangor, and Johor. The objective of the paper is to determine factors that affect the house prices in Kuala Lumpur, Selangor, and Johor. In this study, only prices of houses located in Kuala Lumpur, Selangor and Johor is studied and about 306 data about house price is obtained thus is used in generating the analysis. Number of bathrooms, number of bedrooms, floor area, location, type of property and type of furnishing factors were taken into consideration in this study. The results revealed that number of bathrooms, floor area, location, Terrace type, Semi D type, house type and type of furnishing factors do affect the house price in 2018 to 2020 among Kuala Lumpur, Selangor, and Johor. By understanding the factor affecting the house price, investors would be able to gauge the factors that matter most before investing in property.