## Malaysia: Financial Sector Assessment Program Housing Market-Technical Note

_IMF Staff Country Reports, April 15, 2014_

## Source details

**Canonical URL:** [Malaysia: Financial Sector Assessment Program Housing Market-Technical Note](https://www.imf.org/en/publications/cr/issues/2016/12/31/malaysia-financial-sector-assessment-program-housing-market-technical-note-41479)

## Other formats

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## Bibliographic details
- Published: April 15, 2014
- Series: IMF Staff Country Reports

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### 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*

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## Content in this bundle

- **IMF Country Report No. 14/99; Malaysia Financial Sector Assessment Program; April 2014**
  - [IMF Country Report No. 14/99; Malaysia Financial Sector Assessment Program; April 2014 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1499.pdf.md){rel="alternate" type="text/markdown"}
  - [IMF Country Report No. 14/99; Malaysia Financial Sector Assessment Program; April 2014 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr1499.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/malaysia-financial-sector-assessment-program-housing-market-technical-note-41479_