Page 237 - Contributed Paper Session (CPS) - Volume 8

CPS2265 Siti Salwani Ismail et al.
BLR = Base lending rate
APH = Average house price

Independent variable this model was loan approved. The loan approved
will affect the increase or decrease of gross output value for real estate
subsector. This is because approval of loan is formal authorization to get a
loan usually from a bank.
Residential property is the larger subsector that is contributed to the real
estate subsector in Malaysia. Therefore average house one of the proxy to
study the factor of effect to value gross for real estate subsector. Average
house price may the factor of demand of house in Malaysia. Real house prices
are directly determined by the willingness of households to pay for (and
willingness of builders to supply) a constant-quality house. Changes in the
quantity of housing demanded will affect real prices only to the extent that
the long-run housing supply schedule is positively sloped.

Hypothesis:
H1: There is a significant relationship between gross output value and its
independent variables.

7. Estimation Results
7.1 Descriptive Statistics
The next section of the analysis was concerned with the summary
statistics for all the variables. As Table 1 showed, the value of gross output
had a mean of RM22,838 million with standard deviation RM3,612 million.
The loan approved had a mean of RM103,270 million with standard
deviation of RM15,715 million. The mean for base lending rate is 6.50 with
standard deviation 0.26. The mean value for average house price recorded
RM285,581 and a standard deviation of RM53,466.
Table 1: Summary Statistics
Output Real Base
Average
Variables Estate (RM Loan Approved Lending Price House
(RM Million)
Million) Rate
Mean 22,838 103,270 6.50 285,582
Median 22,320 99,355 6.53 286,674
Std. Dev. 3,612 15,715 0.26 53,466
7.2 Correlation Analysis
Based on analysis below showed that that loan applied had strong
positive relationship between gross output of real estate subsector with
loan approved, base lending rate (BLR) and average price house with 0.673,
0.865 and 0.989 respectively. Meanwhile, loan approved also stated strong
relationship with base lending rate and average price house. Base lending
rate also has strong relationship with average price house with 0.899.

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