What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing

The current practise of the Islamic banks to rely on market interest rate as pricing benchmark for their home financing products has been a subject of intense debate among many parties. Muslim scholars have warned that it is highly discouraged as it could lead to a possible convergence between the p...

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Main Authors:	Kassim, Salina, Redzuan, Nur Harena, Haron, Nor Zalina
Format:	Article
Language:	English English
Published:	Malaysia Institute of Planners 2017
Subjects:	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/60132/ http://irep.iium.edu.my/60132/ http://irep.iium.edu.my/60132/ http://irep.iium.edu.my/60132/1/014%20Salina%20Harena%20PMJ.pdf http://irep.iium.edu.my/60132/7/60132_What%20drives%20house%20price%20in%20Malaysia_scopus.pdf

id	iium-60132
recordtype	eprints
spelling	iium-601322019-01-10T08:23:15Z http://irep.iium.edu.my/60132/ What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing Kassim, Salina Redzuan, Nur Harena Haron, Nor Zalina H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance The current practise of the Islamic banks to rely on market interest rate as pricing benchmark for their home financing products has been a subject of intense debate among many parties. Muslim scholars have warned that it is highly discouraged as it could lead to a possible convergence between the practices of the Islamic and conventional banks. This paper intends to address the financing issues in the discussion of human settlement or housing policy by presenting the determinants for house price index as well as looking into the possibility of adopting the House Price Index (HPI) to replace the market interest rate as a pricing benchmark for the Islamic home financing. The study applies Auto-Regressive Distributed Lag (ARDL) method on a model comprising HPI as the dependent variable and a set of independent variables consisting of economic, housing demand and housing supply factors. The findings lead to the formulation of recommendations as a way forward for the Islamic banking industry in particular, and the economy in general. This will require a paradigm shift from basic financing products to a more holistic approach which integrates supply of housing factors, as well as urban planning and urban finance, with human rights and recognizes the need to place and shelter people. Malaysia Institute of Planners 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/60132/1/014%20Salina%20Harena%20PMJ.pdf application/pdf en http://irep.iium.edu.my/60132/7/60132_What%20drives%20house%20price%20in%20Malaysia_scopus.pdf Kassim, Salina and Redzuan, Nur Harena and Haron, Nor Zalina (2017) What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing. Planning Malaysia: Journal of the Malaysian Institute of Planners, 15 (4). pp. 21-34. ISSN 1675-6215 E-ISSN 0128-0945 http://www.planningmalaysia.org/index.php/pmj/article/view/314/266 10.21837/pmjournal.v15.i4.314
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance
spellingShingle	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance Kassim, Salina Redzuan, Nur Harena Haron, Nor Zalina What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing
description	The current practise of the Islamic banks to rely on market interest rate as pricing benchmark for their home financing products has been a subject of intense debate among many parties. Muslim scholars have warned that it is highly discouraged as it could lead to a possible convergence between the practices of the Islamic and conventional banks. This paper intends to address the financing issues in the discussion of human settlement or housing policy by presenting the determinants for house price index as well as looking into the possibility of adopting the House Price Index (HPI) to replace the market interest rate as a pricing benchmark for the Islamic home financing. The study applies Auto-Regressive Distributed Lag (ARDL) method on a model comprising HPI as the dependent variable and a set of independent variables consisting of economic, housing demand and housing supply factors. The findings lead to the formulation of recommendations as a way forward for the Islamic banking industry in particular, and the economy in general. This will require a paradigm shift from basic financing products to a more holistic approach which integrates supply of housing factors, as well as urban planning and urban finance, with human rights and recognizes the need to place and shelter people.
format	Article
author	Kassim, Salina Redzuan, Nur Harena Haron, Nor Zalina
author_facet	Kassim, Salina Redzuan, Nur Harena Haron, Nor Zalina
author_sort	Kassim, Salina
title	What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing
title_short	What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing
title_full	What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing
title_fullStr	What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing
title_full_unstemmed	What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing
title_sort	what drives house price in malaysia? in search of an alternative pricing benchmark for islamic home financing
publisher	Malaysia Institute of Planners
publishDate	2017
url	http://irep.iium.edu.my/60132/ http://irep.iium.edu.my/60132/ http://irep.iium.edu.my/60132/ http://irep.iium.edu.my/60132/1/014%20Salina%20Harena%20PMJ.pdf http://irep.iium.edu.my/60132/7/60132_What%20drives%20house%20price%20in%20Malaysia_scopus.pdf
first_indexed	2023-09-18T21:25:14Z
last_indexed	2023-09-18T21:25:14Z
_version_	1777412147007979520

What drives house price in Malaysia? In search of an alternative pricing benchmark for Islamic home financing

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