Bubble Detection in the Malaysian Housing Market

  • Chee Yin Yip Faculty of Business and Finance, Universiti Tunku Abdul Rahman
  • Woei Chyuan Wong School of Economics, Banking and Finance, Universiti Utara Malaysia
  • Hock Eam Lim School of Economics, Banking and Finance, Universiti Utara Malaysia

Abstract

This study uses Phillips, Shi and Yu’s (2015) bubble detection method to examine housing bubbles in Malaysia. We documented five positive bubbles and one negative bubble from 1988 to 2015, including the well-known 1997 Asian real estate bubble. The bubble that originated in April 2010 is the most prominent. It peaked in 2013. Since then, it has been exhibiting strong signs of gradual collapse but was still persisting up to the end of the study period in September 2015. Some of these bubbles preceded financial crises, a phenomenon which is consistent with the findings of contagion channels between real estate and financial markets in the literature.

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Published
2017-11-02
How to Cite
YIP, Chee Yin; WONG, Woei Chyuan; LIM, Hock Eam. Bubble Detection in the Malaysian Housing Market. Malaysian Journal of Economic Studies, [S.l.], v. 54, n. 2, p. 203-221, nov. 2017. ISSN 1511-4554. Available at: <https://mjes.um.edu.my/article/view/8628>. Date accessed: 14 aug. 2020. doi: https://doi.org/10.22452/MJES.vol54no2.2.
Section
Articles