The Determinants of House Prices in the Klang Valley, Malaysia
Keywords:House prices, hedonic price method, the Klang Valley
This paper investigates the determinants of house prices. The Klang Valley, Malaysia is chosen as the case study in this paper. Hedonic house price modelling is employed to determine the effects of the structural and location attributes on the prices of the house. Selling prices, structural and location attributes were collected from the database of Department of Valuation and Services of Malaysia, selected maps and reports. Fifty-five factors that are likely to influence a house price were identified and used to determine the overall effects of the structural and location attributes on house prices. However, only significant variables were included in the final model and these were identified by using correlation analysis and modified step-wise procedures. The outcome of this paper shows a positive relationship between structural and location attributes and house prices.