Inter-relationships between stock index with residential properties and indirect property investment in Malaysia

The implication of this study is to ascertain the wealth effect and credit price effect from various property investment vehicles to Malaysian stock index, where this can provide a guide for optimum investment portfolio decision making by understanding various characteristics. This study utilizes va...

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Main Author:	Lee, Young Yee
Format:	Thesis
Language:	English
Published:	2014
Subjects:	HD1394-1394.5 Real estate management
Online Access:	http://eprints.utm.my/id/eprint/50769/25/LeeYoungYeemMFKSG2014.pdf
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id	my-utm-ep.50769
record_format	uketd_dc
spelling	my-utm-ep.507692020-07-12T03:20:12Z Inter-relationships between stock index with residential properties and indirect property investment in Malaysia 2014-08 Lee, Young Yee HD1394-1394.5 Real estate management The implication of this study is to ascertain the wealth effect and credit price effect from various property investment vehicles to Malaysian stock index, where this can provide a guide for optimum investment portfolio decision making by understanding various characteristics. This study utilizes various econometric tools in VECM by exploring inter-relationship between stock index with residential properties and indirect property in Malaysia. The correlation exists between stock index and property markets by common exogenous factors, such as GDP, T-Bill rate and other contagion factors. By variance decomposition, short-run indicated the significant shock from Malaysian GDP, whereas significant long-run shock from stock index to various house price index and indirect property investment, except own shocks. Contagion effects from Singapore exist, particularly to Kuala Lumpur, Selangor Penang and Johor semi-detached house price index in short-run, possible because of medium class income earning in preference in upgrade their house which benefited by increasing Singapore business activities with Malaysia. By applying Granger causality test, it was found that there was a mixture of wealth effect and credit price effect in various locality and type of properties. As for indirect property investment, interestingly, Bursa Malaysia property index having wealth effect from the Bursa Stock index, whereas, S&P Malaysian REIT index experienced creditprice effect, which adversely performed to Bursa property index. Lastly, in short-run, it proven that inflation do caused the house price index, thus housing investment can be inflation hedged. 2014-08 Thesis http://eprints.utm.my/id/eprint/50769/ http://eprints.utm.my/id/eprint/50769/25/LeeYoungYeemMFKSG2014.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:87908 masters Universiti Teknologi Malaysia, Faculty of Geoinformation and Real Estate Faculty of Geoinformation and Real Estate
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HD1394-1394.5 Real estate management
spellingShingle	HD1394-1394.5 Real estate management Lee, Young Yee Inter-relationships between stock index with residential properties and indirect property investment in Malaysia
description	The implication of this study is to ascertain the wealth effect and credit price effect from various property investment vehicles to Malaysian stock index, where this can provide a guide for optimum investment portfolio decision making by understanding various characteristics. This study utilizes various econometric tools in VECM by exploring inter-relationship between stock index with residential properties and indirect property in Malaysia. The correlation exists between stock index and property markets by common exogenous factors, such as GDP, T-Bill rate and other contagion factors. By variance decomposition, short-run indicated the significant shock from Malaysian GDP, whereas significant long-run shock from stock index to various house price index and indirect property investment, except own shocks. Contagion effects from Singapore exist, particularly to Kuala Lumpur, Selangor Penang and Johor semi-detached house price index in short-run, possible because of medium class income earning in preference in upgrade their house which benefited by increasing Singapore business activities with Malaysia. By applying Granger causality test, it was found that there was a mixture of wealth effect and credit price effect in various locality and type of properties. As for indirect property investment, interestingly, Bursa Malaysia property index having wealth effect from the Bursa Stock index, whereas, S&P Malaysian REIT index experienced creditprice effect, which adversely performed to Bursa property index. Lastly, in short-run, it proven that inflation do caused the house price index, thus housing investment can be inflation hedged.
format	Thesis
qualification_level	Master's degree
author	Lee, Young Yee
author_facet	Lee, Young Yee
author_sort	Lee, Young Yee
title	Inter-relationships between stock index with residential properties and indirect property investment in Malaysia
title_short	Inter-relationships between stock index with residential properties and indirect property investment in Malaysia
title_full	Inter-relationships between stock index with residential properties and indirect property investment in Malaysia
title_fullStr	Inter-relationships between stock index with residential properties and indirect property investment in Malaysia
title_full_unstemmed	Inter-relationships between stock index with residential properties and indirect property investment in Malaysia
title_sort	inter-relationships between stock index with residential properties and indirect property investment in malaysia
granting_institution	Universiti Teknologi Malaysia, Faculty of Geoinformation and Real Estate
granting_department	Faculty of Geoinformation and Real Estate
publishDate	2014
url	http://eprints.utm.my/id/eprint/50769/25/LeeYoungYeemMFKSG2014.pdf
_version_	1747817530276184064

Inter-relationships between stock index with residential properties and indirect property investment in Malaysia

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