Forecasting the residential property sector is a crucial component in the decision-making process for investors and government in supporting asset allocation, developing property finance plans and implementing a relevant policy. The purpose of this study is to examine the determinants of Penang house price index and to develop a model to forecast Penang house price index in Malaysia. Estimation is done by using ordinary least square and artificial neural network method. Relevant data sets were obtained from the Monthly Statistical Bulletin, Bank Negara Malaysia and National Property Information Centre. The empirical analysis of this research is based on quarterly time series data which cover the periods from 2005Q1 to 2022Q1. The main findings reported that base lending rate and unemployment rate are negatively associated with and have significant impacts on Penang house price index. Meanwhile, gross domestic product is positively related to and has a significant impact on Pen.....

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