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An empirical analysis of materials' cost effect in the Malaysian housing market industry using deterministic method: case of Klang Valley

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  • Rajeeshwaran Moorthy

Abstract

Materials are the essence of the construction industry. Material resource represents a substantial proportion of the total value of the project. Hence, this study is aimed at investigating materials' cost-related factors that cause an increase in housing market prices in the Malaysian construction industry. However, the scope of this paper is limited to investigations in the Klang Valley region only. There is a need to create a specific research model with the aim of identifying specific factors under the materials sector that also provide a more simplified divergent angle of reference. The proposed model is a 'hybrid' version derived from an existing model created by Carr which classifies materials' costs into two types: direct material cost and indirect material cost. It is proposed at the end of the research that material cost does have an effect on the rising price of house in Malaysia.

Suggested Citation

  • Rajeeshwaran Moorthy, 2015. "An empirical analysis of materials' cost effect in the Malaysian housing market industry using deterministic method: case of Klang Valley," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 8(3), pages 266-279.
    • Handle: RePEc:ids:ijtrgm:v:8:y:2015:i:3:p:266-279
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