Sentiments in the housing market and the effectiveness of government interventions

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 measur...

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Main Authors: Cheong, Calvin W. H. *, Ngui, Lisa L. H., Shella, G. B.
Format: Article
Language:English
Published: Taylor and Francis 2021
Subjects:
Online Access:http://eprints.sunway.edu.my/1935/
http://eprints.sunway.edu.my/1935/1/Cheong%20W%20H%20Sentiments%20in%20the%20housing%20market.pdf
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author Cheong, Calvin W. H. *
Ngui, Lisa L. H.
Shella, G. B.
author_facet Cheong, Calvin W. H. *
Ngui, Lisa L. H.
Shella, G. B.
author_sort Cheong, Calvin W. H. *
building SU Institutional Repository
collection Online Access
description 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.
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spelling sunway-19352021-12-17T07:33:27Z http://eprints.sunway.edu.my/1935/ Sentiments in the housing market and the effectiveness of government interventions Cheong, Calvin W. H. * Ngui, Lisa L. H. Shella, G. B. HG Finance 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. Taylor and Francis 2021-07 Article PeerReviewed text en cc_by_nc_4 http://eprints.sunway.edu.my/1935/1/Cheong%20W%20H%20Sentiments%20in%20the%20housing%20market.pdf 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 http://doi.org/10.1080/14445921.2021.1946259 doi:10.1080/14445921.2021.1946259
spellingShingle HG Finance
Cheong, Calvin W. H. *
Ngui, Lisa L. H.
Shella, G. B.
Sentiments in the housing market and the effectiveness of government interventions
title Sentiments in the housing market and the effectiveness of government interventions
title_full Sentiments in the housing market and the effectiveness of government interventions
title_fullStr Sentiments in the housing market and the effectiveness of government interventions
title_full_unstemmed Sentiments in the housing market and the effectiveness of government interventions
title_short Sentiments in the housing market and the effectiveness of government interventions
title_sort sentiments in the housing market and the effectiveness of government interventions
topic HG Finance
url http://eprints.sunway.edu.my/1935/
http://eprints.sunway.edu.my/1935/
http://eprints.sunway.edu.my/1935/
http://eprints.sunway.edu.my/1935/1/Cheong%20W%20H%20Sentiments%20in%20the%20housing%20market.pdf