Determinants of Housing Price in ASEAN-5 Countries: Panel Data Approach

In the recent years, housing price in ASEAN countries have been in an increasing trend and before long, it might reach its peak. This study aims to examine the determinants of housing prices in ASEAN-5 countries (Indonesia, Malaysia, Singapore, Philippines, and Thailand), using panel data analysis for the period 2000-2013. The housing price variables are grouped together as macro-economic factors and demographic factors. Our result shows that fixed effect model is a more appropriate model to explain the relationship between the housing prices and its determinants. The study found that all of the determinants (gross domestic product, consumer price index, population, and unemployment) significantly affect the housing prices with the expected signs, except gross domestic product. The negative relationship between gross domestic product and housing price may be due to the economic uncertainties in ASEAN-5 countries that constantly face economic disturbances.