Malaysia: Financial Sector Assessment Program Housing Market-Technical Note
IMF Staff Country Reports, April 15, 2014
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- Malaysia: Financial Sector Assessment Program Housing Market-Technical Note
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Bibliographic details
- Published: April 15, 2014
- Series: IMF Staff Country Reports
Overview
- Focus: price developments in the Malaysian housing market and assessment of their sustainability.
- Time series: Malaysia maintains a one-fourth time series for the housing prices index, tracing back to the 1990s.
- Structural break: The second half of 2010 marks a clear change in the evolution of housing prices.
Key findings
- The housing prices index is available as a one-fourth time series extending to the 1990s.
- There is a marked change in housing price evolution beginning in the second half of 2010.
- The break-down of the structural relation between housing prices and the macroeconomic variables used in the econometric model is suggestive of an important shift in the dynamics of housing prices.
Analytical observations
- Econometric model results indicate a breakdown in the historical structural relation linking housing prices and macroeconomic variables.
- The observed structural break points to altered dynamics in the housing market post–second half of 2010, which may affect the interpretation of model-based price sustainability assessments.
Policy implications and recommendations
- The shift in dynamics identified by the breakdown in the structural relation "should be further investigated."
- Continued monitoring and deeper analysis of post-2010 housing price behavior and its drivers are implied to assess sustainability and policy responses.
International Monetary Fund. Monetary and Capital Markets Department "Malaysia: Financial Sector Assessment Program Housing Market-Technical Note", IMF Staff Country Reports 2014, 099 (2014), accessed 9/12/2026
Content in this bundle
- IMF Country Report No. 14/99; Malaysia Financial Sector Assessment Program; April 2014