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A Review on the Impacts of Macroeconomic Factors on Business Values of Property Developers: Case Study of Malaysia

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  • Chai Woei-Chyi

    (Tunku Abdul Rahman University of Management & Technology)

  • Cheng Chin-Tiong

    (Tunku Abdul Rahman University of Management & Technology)

  • Tham Kuen-Wei

    (Tunku Abdul Rahman University of Management & Technology)

  • Chong Kim-Wing

    (Tunku Abdul Rahman University of Management & Technology)

Abstract

The COVID-19 pandemic significantly impacted the business value of property developers worldwide, including Malaysia. This study reviews the effect of the pandemic on the price-to-earnings (PE) ratio of property developers, focusing on the top five developers in Malaysia, whose collective market capitalization represents 30% of the total listed property developers in the country. Statistical analysis indicates that the PE ratio of these developers experienced a drastic decline during the pandemic, reflecting the economic uncertainty, reduced consumer demand, and disruptions in the real estate sector. However, as the market adapted to new conditions, government interventions were introduced, and economic recovery gained momentum, the PE ratios rebounded post-pandemic, signaling renewed investor confidence and market stabilization. The findings align with global trends in stock market volatility and economic downturns, underscoring the real estate market’s vulnerability to macroeconomic fluctuations. This review contributes to a deeper understanding of the pandemic’s impact on business valuation within the property sector and provides insights for future investment strategies and policy considerations.

Suggested Citation

  • Chai Woei-Chyi & Cheng Chin-Tiong & Tham Kuen-Wei & Chong Kim-Wing, 2025. "A Review on the Impacts of Macroeconomic Factors on Business Values of Property Developers: Case Study of Malaysia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3), pages 2157-2166, March.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-3:p:2157-2166
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    1. repec:ucp:bkecon:9780226520018 is not listed on IDEAS
    2. Christian N. Worlu & Cordelia Onyinyechi Oomodero, 2017. "A Comparative Analysis of Macroeconomic Variables and Stock Market Performances in Africa (2000-2015)," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 95-102, October.
    3. repec:ucp:bkecon:9780226519944 is not listed on IDEAS
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