What drives the property prices ? the Malaysian case

The aim of this paper is to investigate the drivers of the property prices. In particular, the paper seeks to identify the lead-lag relationship between the property prices and macroeconomic variables. Malaysia is taken as a case study. The standard time series techniques are employed for the analysis. The findings tend to indicate that inflation rate followed by exchange rate are the drivers of the property prices in Malaysia but not the interest rate or GDP. This is an important finding since the results would help the policy makers take steps to stabilize the property prices at least in the Malaysian context.