Abstract
Housing prices or the value of houses in Malaysia have fluctuated significantly in the last decade. This sort of indecisions creates an obvious effect on the people who wish to invest or buy housing in Malaysia. Many researchers had argued in the past that housing prices are closely related to the affordability of buyers to own a house, therefore the government plays a vital role in ensuring the housing prices of Malaysia are at par with the income levels. As such, the current study aims to discuss on several factors which affect housing prices in Malaysia. The study had identified several factors, namely foreign direct investment (FDI), gross domestic product (GDP), interest rate, unemployment and inflation for purposes of discussion. Hence, it is important to understand the factors affecting the housing prices in Malaysia for government and policy makers to make decisions. This study is made to provide answers for factors affecting Malaysia’s house prices.