From Micro to Macro: Analysing Economic Impacts on Kuala Lumpur’s Shop Property Price Index

Authors

  • Intan Faiqah Hamizah Mohd Firazan Department of Built Environment Studies and Technology, Faculty of Built Environment, Universiti Teknologi MARA, Perak Branch, Seri Iskandar Campus, Malaysia
  • Junainah Mohamad Department of Built Environment Studies and Technology, Faculty of Built Environment, Universiti Teknologi MARA, Perak Branch, Seri Iskandar Campus, Malaysia
  • Njo Anastasia Program Finance & Investment, School of Business & Management, Petra Christian University, Surabaya, Indonesia

Keywords:

Shop Property Price Index, Hedonic Pricing, Microeconomic Determinants, Macroeconomic Factors

Abstract

This study constructs the Kuala Lumpur Shop Property Price Index (SH-PI) using a Laspeyres hedonic regression model, addressing the absence of a dedicated index for shop properties in Malaysia. By adjusting for structural, legal and locational attributes, the SH-PI captures quality-consistent price trends from 2013 to 2023. Regional indices are aggregated to form a city-wide benchmark, which is then compared against macroeconomic indicators (GDP, inflation, interest rate, unemployment). Findings show the SH-PI outperforms unadjusted averages in stability and interpretability, offering a transparent, evidence-based tool for policymakers, investors, and developers navigating the urban commercial property market.

References

Davino, C., Furno, M., & Vistocco, D. (2021). Statistical Methods for Housing Market Analysis. Springer.

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Eurostat. (2021). Handbook on Residential Property Price Indices (RPPIs): Revised Guidelines. Publications Office of the European Union.

Mora, M. T., & Formoso, C. T. (2022). A hedonic model to assess property prices in mixed-use urban contexts. Journal of Urban Management, 11(3), 167–180.

OECD. (2023). Measuring Housing Affordability and Price Indices. Organisation for Economic Co-operation and Development.

Shayuti, A. F. A., Razali, M. N., Kassim, F. A. I., & Jalil, R. A. (2023). Commercial real estate prices in Malaysia and COVID-19. Planning Malaysia, 21(27), 57–69.

UN-HABITAT. (2020). Housing Price Index Construction Manual. Nairobi: United Nations Human Settlements Programme.

Published

2025-09-25

How to Cite

Mohd Firazan , I. F. H., Mohamad , J., & Anastasia , N. (2025). From Micro to Macro: Analysing Economic Impacts on Kuala Lumpur’s Shop Property Price Index . Environment-Behaviour Proceedings Journal, 10(33). Retrieved from https://ebpj.e-iph.co.uk/index.php/EBProceedings/article/view/7275

Issue

Vol. 10 No. 33 (2025): Sep. AicE-Bs2025London, UK, 29-31 Aug 2025 (DRAFT)

Section

Commercial / Retail / Services Environment

License

Copyright (c) 2025 Intan Faiqah Hamizah Mohd Firazan , Junainah Mohamad , Njo Anastasia

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.