Sentiments in the housing market and the effectiveness of government interventions

Cheong, Calvin W. H. * and Ngui, Lisa L. H. and Shella, G. B. (2021) Sentiments in the housing market and the effectiveness of government interventions. Pacific Rim Property Research Journal, 26 (3). pp. 223-247. ISSN 2201-6716

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This paper examines the factors that drive the recent growth of house prices in Malaysia. By constructing a housing market sentiment index, we find contemporaneous sentiment to have a strong influence on future housing market returns especially in the short-term. Government-introduced cooling measures were ineffective in dampening prices and market sentiment. We also find property developer behaviour to drive sentiments and prices. The study contributes to literature by providing an easily generalizable method of constructing a housing market sentiment index in other countries besides giving clear indication of the drivers of house prices and sentiment for more effective government intervention.

Item Type: Article
Uncontrolled Keywords: house prices; market sentiments; investor sentiments; government intervention
Subjects: H Social Sciences > HG Finance
Divisions: Others > Non Sunway Academics
Sunway University > Sunway Business School [formerly Sunway University Business School until 2023] > Dept. Economics & Finance
Depositing User: Dr Janaki Sinnasamy
Related URLs:
Date Deposited: 17 Dec 2021 07:33
Last Modified: 17 Dec 2021 07:33

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