PROPERTY MARKET RESEARCH (SGP 3113)
SEM 2 2008/09
Lab Work 2
Date: 25/07/08
Instructions: This Lab work is a continuation of Lab Work 1.
Question 1
Use sectoral percentage GDP from Question 1 in Lab Work 1. Using a linear-form equation, regress the
percentage GDP against time period using the following general model:
%GDPt = a + bT
where %GDPt is percentage of gross domestic product in year t (t=1, 2, 3,…, 12); T = (where T=1, 2, 3,…, 12)
is time period; a and b are regression coefficients. [Note: Make sure that you estimate 10 separate
equations, one for each economic sub-sector.]
Summarise your outputs as follows (please indicate t-value for each variable):
Economic sub-sectors
Agriculture, forestry and fishing
Mining and quarrying
Manufacturing
Construction
Electricity, gas and water
Transport, storage, and communication
Wholesale and retail trade, hotel and restaurant
Finance, insurance and real estate and business service
Government services
Other services
Intercept
Slope
Adj R2
Based on the regression slopes, discuss how the Malaysian economy has performed, by giving special
attention to the construction and FIRE sub-sectors.
Question 2
Using the 1996-2007’s data from Question 1 and Question 2, estimate the following general linear
equation for each type of property:
GDPt =  + NOTt
where GDPt is value of gross domestic product in year t (t=1, 2, 3,…, 12); NOT = is number of property
transaction in year t (t=1, 2, 3,…, 12);  and  are regression coefficients.
1
Summarise your outputs as follows (please indicate t-value for each variable):
Type of property
Residential
Commercial
Industrial
Agriculture
Others
Intercept
Slope
Adj R2
Discuss your results. Conduct a simple analysis for examining GDP elasticity of property transactions. What
is your conclusion? [Note: refer to Basic Aspects of Property Market Research p. 88 for the concept of
“elasticity”.]
Reference:
Hamid, Abdul, bin Hj. Mar Iman (2006). Basic Aspects of Property Market Research Skudai: Universiti
Teknologi Malaysia Publisher.
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