The Performance of Kuala Lumpur Commercial Property Price Index

Tee, Zhi Sien (2020) The Performance of Kuala Lumpur Commercial Property Price Index. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

The term of commercial property refers to the building or land that are intended to generate a profit either from capital gain or rental income. Besides that, the commercial property is normally used for business activities purposed. Commercial property may include office building, medical centre, hotel, mall, retail store, multi-family housing building, warehouse, garages and etc. While the Commercial Property Price Index (CPPIs) is based on actual commercial property transaction in market and it is used to measure the movement of price changes as percentage from some specific started date. The aim of this study is to construct the Commercial Property Price Index (CPPIs) as well as to identify whether investment in commercial property or residential property will be more secure to the investor in the market. With the help of this research, an investor can make an elite decision before make any decision in invest in any type of property in market. Due to an elite decision, the property bubble will not expose in the market as well as economic recession will not be happened. In order to achieve the research objective, the literature review, secondary data collection as well as quantitative research methodology are been adopted in this research. The results in this study will been using the transaction data of shop lot units from the JPPH website. Moreover, the correlation between Commercial Property Price Index (CPPIs) as well as Residential Property Price Index (RPPIs) also has been describe in this study in order to know how strong relation between this two type of index is. Hence, this study has provided a better understanding on knowledge of Commercial Property Price Index (CPPIs), risk and return for investing in commercial property, the recent performance of commercial property transacted in market, factor that can affect the commercial property price in market and etc. Due to the limited time, data and resources, this research are only cover for shop lot units in Kuala Lumpur.