Macroeconomic determinants of selected Asia housing market

The house price issue has become an issue that is enthusiastically discussed, especially when the occurrence of rising toward house price. Thus, the main objective of this study is to identify macroeconomic determinant which influences house price. The macroeconomic determinants that involved in this study are gross domestic product, real interest rate, inflation rate, money supply and household consumption and expenditure. This study also investigates the existence of long-run relationship between house price and the macroeconomic determinants. This study covers a period of seventeen years that starts from year 1998 to the year 2014. There are nine Asia countries that include in this study namely Hong Kong, Japan, South Korea, Singapore, China, Indonesia, Malaysia, Taiwan and Thailand. The results of this study showed that three from five macroeconomic determinants which is significant based on dynamic ordinary least squares estimation and fully modified ordinary least square estimation. The three macroeconomic determinants that are significant are real interest rate, inflation rate and household consumption and expenditure. In addition, panel cointegration test indicates the existence of long-run relationship between house price and macroeconomic determinants.