The Economical Factors Affecting Residential Property Price: The Case of Penang Island

Abstract

The main purpose of this study is to investigate the economical factors which are effecting on the residence property price in the specific state of Malaysia called “Penang”. For this research, secondary data were collected from Bank Negara Malaysia, Department of Statistic Malaysia, Ministry of Finance Malaysia and Valuation and Property Service Department. All the economical factors are on a yearly basis from 2007 to 2014. The study was directed to verify the relationship between the economical factors and housing price in Penang. Both the individual effects and the interactive effects are analyzed. According to the analysis and calculations, the main factor Base Lending Rate (BLR) and second most effecting factor Gross Domestic Product (GDP) are the strong Factors which affect the property prices in Penang.