Critical determinants of residential property value: professionals’ perspective

2016 ◽  
Vol 14 (3) ◽  
pp. 283-300 ◽  
Author(s):  
Rotimi Boluwatife Abidoye ◽  
Albert P.C. Chan
Keyword(s):  
Real Estate ◽  
Research Area ◽  
Residential Property ◽  
Property Value ◽  
Property Market ◽  
Online Questionnaire ◽  
Content Type ◽  
Estate Property ◽  
Residential Property Value ◽  
Level Of Significance

Purpose Real estate property has been established as a composite good, and its value is determined by many variables. The heterogeneous nature of real estate property has made different stakeholders value these variables differently. Therefore, this study aims to identify and evaluate these sets of variables which influence residential property value in the Lagos metropolis property market, Nigeria, based on professional valuers’ perception. Design/methodology/approach A list of variables that influences property value was generated through literature review, and the list was used to design an online questionnaire that was administered to valuers practicing in the metropolis. The valuers were asked to rank these variables in order of significance. Their response was analysed to establish the mean score of each variable that depicts their level of significance. Findings In order of importance, property location, neighbourhood characteristics, property state of repair, size of property, availability of neighbourhood security and age of property are the most highly significant variables that are influential on the property value in the Lagos metropolis. Practical implications The findings of this study will inform all existing and prospective real estate stakeholders, including facility managers of the major determinants of the value of their investments and, at the same time, will be a tool for valuers and researchers in property value modelling. Originality/value This study is the first attempt to develop a framework of property value determinants in this research area in Nigeria.

Effectiveness of rent recovery strategies on residential real estate in Ibadan, Nigeria

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adedayo Ayodeji Odebode ◽  
Timothy Tunde Oladokun ◽  
Oyeronke Toyin Ogunbayo ◽  
Joseph Bamidele Oyedele
Keyword(s):  
Real Estate ◽  
Management Practice ◽  
Exploratory Research ◽  
Residential Real Estate ◽  
Property Market ◽  
Real Estate Investment ◽  
Content Type ◽  
Property Type ◽  
Recovery Strategies ◽  
Estate Property

PurposeThe upward rise of the prolonged payback period and the inability of the project to generate estimated income that has been linked with the irregular rent payments has been a major problem confronting real estate investment. Given the fact that real estate investment is a risky investment venture with a highly uncertain future stream of income, this paper examines the effectiveness of rent recovery strategies in the emerging Nigeria residential real estate practice.Design/methodology/approachThe study employed an exploratory research design. The study identified the five recovery strategies adopted by the estate surveying and valuation firms in Ibadan Metropolis, Nigeria. The study adopts a purposive sampling method to select 52 registered estate firms in the study area and a questionnaire using a five-point Likert scale was used to elicit information. The data obtained were analyzed using descriptive and inferential statistics.FindingsThe result showed that the rent recovery strategies adopted by the respondents include email approach, rent reminder notice, adequate maintenance, eviction notice and dialogue approach. The perceived top-rated strategies that could influence estimated income were dialogue and rent reminder notice. Also, the findings showed the factors that influence the choice of strategy are property type, company policy and the proportion of rent to the tenant's income.Practical implicationsThe study has an implication for real estate investors and property practitioners regarding the willingness of the investors to invest in real estate investment.Originality/valueThis paper is relevant given the fact that the rental property market is prone to risk that could impede the regular streamflow of income. This serves as a need for examination of the effectiveness of adopted rent recovery strategies as it relates to real estate property management practice and investment viability.

scholarly journals On Selecting Approaches to Analysis of the Residential Property Market

2019 ◽  
Vol 10 (2) ◽  
Author(s):  
Natalya Kovalevskaya ◽  
Vladislav Tyunkov
Keyword(s):  
Real Estate ◽  
Residential Property ◽  
Property Market ◽  
Dual Nature ◽  
Factors Affecting ◽  
Market Participants ◽  
Consumer Interests ◽  
Private Investors ◽  
The Impact ◽  
Private Individual

The article examines the issues of developing the residential property market taking into account the specifics of real estate as an object of the economic analysis. It reveals the terms of implementing economic interest in investing in residential property, identifies the features inherent in the residential property market as investment and commodity markets. It analyses the dual nature of real estate which explains the development of investment and consumer interests of the residential property market participants. The article analyses the interrelation of «saving - investment - consumption» at the level of implementing private (individual) interests of economic subject. It makes a comparison of various investment assets in terms of their attractiveness for private investors, depending on various factors affecting the decision to invest. It analyses the terms that allow to fully disclose the investment or consumer aspects of the residential property market. It considers the impact of the governmental investment policy directed at supporting and promoting development aspects of the residential property market.

scholarly journals The Application of Spatial Analysis Methods in the Real Estate Market in South‑Eastern Poland

2018 ◽  
Vol 1 (333) ◽  
Author(s):  
Dorota Dejniak
Keyword(s):  
Spatial Analysis ◽  
Real Estate ◽  
Real Estate Market ◽  
Graphical Form ◽  
Property Market ◽  
Strategic Decisions ◽  
The Real ◽  
The Real Estate ◽  
South Eastern ◽  
Estate Property

The aim of the article is to apply the method of spatial analysis to research the real estate property market in south‑eastern Poland. The methods of spatial statistics will be used to model the space differences of prices per one square metre of dwelling surface located in districts of south‑eastern Poland and to investigate spatial autocorrelation. The databases will be presented in a graphical form. The results may be used to set the spatial regularities and relations. The methods presented may be applied while making strategic decisions.

DEMATEL method of analysing the factors influencing the decision to adopt virtual reality technology by real estate firms in Lagos property market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayodele Samuel Adegoke ◽  
Timothy Tunde Oladokun ◽  
Timothy Oluwafemi Ayodele ◽  
Samson Efuwape Agbato ◽  
Ahmed Ademola Jinadu
Keyword(s):  
Virtual Reality ◽  
Real Estate ◽  
Social Influence ◽  
Property Market ◽  
Content Type ◽  
Performance Expectancy ◽  
Factors Influencing ◽  
Effort Expectancy ◽  
Facilitating Conditions ◽  
Estate Agency

PurposeThe study analysed the factors influencing real estate firms' (REFs) decision to adopt virtual reality (VR) technology using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method. This was done to enhance the practice of real estate agency in Nigeria.Design/methodology/approachData were elicited from eight real estate experts. These experts were heads of the agency department of firms that had been in existence for a minimum of five years in the Lagos property market. The data analysed in this study were collected with the aid of a questionnaire.FindingsThe result revealed that use intention was influenced by performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value and UB. Also, facilitating conditions, habit and use intention did not influence use behaviour. Overall, six constructs, which include price value (Ri − Cj value = 0.1284), use behaviour (Ri − Cj value = 0.0666), social influence (Ri − Cj value = 0.0583), facilitating conditions (Ri − Cj value = 0.0323), performance expectancy (Ri − Cj value = 0.0196) and effort expectancy (Ri − Cj value = 0.0116), were significant predictors of the factors influencing the decision of REFs to adopt VR. Of these constructs, the Ri − Cj values indicated that price value had the highest causative influence.Practical implicationsThe result of this study will bring REFs to the consciousness of the factors that could affect their adoption of VR technology. This study will also assist the Nigerian Institution of Estate Surveyors and Valuers in appropriately enlightening REFs on the integration of VR technology into the agency practice especially at this time when all health protocols and guidelines need to be observed to help flatten the curve of the Covid-19 pandemic.Originality/valueThis study is the first to have an insight into the analysis of the factors influencing REFs' decision to adopt VR technology using the DEMATEL method.

Residential property market determinants: evidence from the 2018 Australian market downturn

2019 ◽  
Vol 38 (2) ◽  
pp. 157-175
Author(s):  
Peng Yew Wong ◽  
Woon-Weng Wong ◽  
Kwabena Mintah
Keyword(s):  
Housing Market ◽  
Economic Conditions ◽  
Residential Property ◽  
Investment Fund ◽  
Property Market ◽  
Data Set ◽  
Content Type ◽  
Econometric Methods ◽  
Residential Market ◽  
Australian Bureau Of Statistics

Purpose The purpose of this paper is to validate and uncover the key determinants revolving around the Australian residential market downturn towards the 2020s. Design/methodology/approach Applying well-established time series econometric methods over a decade of data set provided by Australian Bureau of Statistics, Reserve Bank of Australia and Real Capital Analytics, the significant and emerging drivers impacting the Australian residential property market performance are explored. Findings Besides changes in the significant levels of some key traditional market drivers, housing market capital liquidity and cross-border investment fund were found to significantly impact the Australian residential property market between 2017 and 2019. The presence of some major positive economic conditions such as low interest rate, sustainable employment and population growth was perceived inadequate to uplift the Australian residential property market. The Australian housing market has performed negatively during this period mainly due to diminishing capital liquidity, excess housing supplies and retreating foreign investors. Practical implications A better understanding of the leading and emerging determinants of the residential property market will assist the policy makers to make sound decisions and effective policy changes based on the latest development in the Australian housing market. The results also provide a meaningful path for future property investments and investigations that explore country-specific effects through a comparative analysis. Originality/value The housing market determinants examined in this study revolve around the wider economic conditions in Australia that are not new. However, the coalesce analysis on the statistical results and the current housing market trends revealed some distinguishing characteristics and developments towards the 2020s Australian residential property market downturn.

scholarly journals Modelling the drivers of the UK multi-let industrial property market: an exploratory study

2020 ◽  
Vol 38 (4) ◽  
pp. 585-596
Author(s):  
David Higgins ◽  
Tsvetomira Vincent ◽  
Peter Wood
Keyword(s):  
Real Estate ◽  
Hedonic Pricing ◽  
Valuable Insight ◽  
Pricing Model ◽  
Property Market ◽  
Industrial Property ◽  
Content Type ◽  
Hedonic Pricing Model ◽  
Significant Difference ◽  
Asset Class

PurposeMulti-let industrial (MLI) estates are an emerging £15 billion UK real estate asset class that can offer attractive returns, a diversified income base, constrained supply and extensive management opportunities to add value within an operational platform. This investment appeal is supported by the evolving MLI occupier market with the growth of small to medium enterprises (SME) requiring modern urban business space driven in part by technology advances offering new streams of supply chain connectivity between businesses and potential clients at a local level.Design/methodology/approachTo understand more about MLI properties, this study utilises a hedonic pricing model to quantify property values as a function of defined variables. The dataset used for this research is a sample portfolio of 26 multi-let industrial properties. The dataset was analysed alongside eleven physical, financial and locational factors. Interestingly, the hedonic pricing model results showed that only four characteristics are value-affecting across the selected properties: namely (1) Granularity of the property income, (2) Distance from the nearest motorway, (3) Distance to the nearest town centre and (4) Gross internal floor area. A chi–test confirmed that there was no significant difference between the modelled values and the supplied property valuations.FindingsThis preliminary study offers valuable insight into MLI property market drivers and could easily form a simple decision-making tool to examine potential MLI opportunities in this developing real estate asset class.Originality/valueIn detailing these key MLI property features, current research is limited and focused primarily on market commentary. New knowledge on the MLI property market can provide a platform creating interesting opportunities for fund managers with an intensive management engagement strategy.

Boosted regression trees

2014 ◽  
Vol 19 (2) ◽  
pp. 152-167 ◽  
Author(s):  
William J. McCluskey ◽  
Dzurllkanian Zulkarnain Daud ◽  
Norhaya Kamarudin
Keyword(s):  
Real Estate ◽  
Regression Trees ◽  
Heterogeneous Data ◽  
Boosted Regression Trees ◽  
Categorical Variables ◽  
Percentage Error ◽  
Residential Property ◽  
Data Set ◽  
Content Type ◽  
Real Estate Valuation

Purpose – The purpose of this paper is to apply boosted regression trees (BRT) to a heterogeneous data set of residential property drawn from a jurisdiction in Malaysia, with the objective to evaluate its application within the mass appraisal environment in Malaysia. Machine learning (ML) techniques have been applied to real estate mass appraisal with varying degrees of success. Design/methodology/approach – To evaluate the performance of the BRT model two multiple regression analysis (MRA) models have been specified (linear and non-linear). One of the weaknesses of traditional regression is the need to a priori specify the functional form of the model and to ensure that all non-linearities have been accounted for. For a BRT model the algorithm does not require any predetermined model or variable transformations, making the process much simpler. Findings – The results show that the BRT model outperformed the MRA-specified models in terms of the coefficient of dispersion and mean absolute percentage error. While the results are encouraging, BRT models still lack transparency and suffer from the inability to translate variable importance into quantifiable variable effects. Practical implications – This paper presents a useful alternative modelling technique, BRT, for use within the mass appraisal environment in Malaysia. Its advantages include less intensive data cleansing, no requirement to specify the predictive underlying model, ability to utilise categorical variables without the need to transform them and not as data hungry, as for example, MRA. Originality/value – This paper adds to the knowledge in this area by applying a relatively new ML model, BRT to residential property data from a jurisdiction in Malaysia. BRT has shown promise as a strong predictive model when applied in other disciplines; therefore this research empirically tests this finding within real estate valuation.

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