IMPACT OF HOUSING ATTRIBUTES ON RENTAL VALUES OF RESIDENTIAL PROPERTIES IN MINNA, NIGERIA

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ABSTRACT

Analysis of the impact of housing attributes on rental values of residential properties over the years has been a major challenge in the global housing market. This phenomenon arises due to the complexity, uniqueness and heterogeneity of housing commodity coupled with the diverse socio- economic characteristics of housing locations in various residential neighborhoods of different geographical regions. The purpose of this study was to examine the impact of various housing attributes such as dwellings, location and neighborhood characteristics on rental values of residential properties in Minna, Nigeria. Three (3) residential neighborhoods were randomly selected each from high density, medium and low density areas of the metropolis for the study. Structured questionnaires with closed ended questions were administered randomly to three hundred and eighty five (385) respondents across the three neighborhoods. A total of three hundred and thirty seven (337) questionnaires were returned out of which three hundred and twelve (312) questionnaires were considered valid for the analysis of the data obtained from the field survey. Three (3) categories of residential properties which include one bedroom, two bedroom and three bedroom apartments respectively were adopted for the study. Descriptive analysis and Standard Multiple regression analytical techniques were employed in analyzing the research data. Results from the analyses indicated that the entire independent variables used as predictors are statistically significant to the prediction of rental values of residential properties in Minna metropolis. The results also revealed that condition of building components is the major predictor of rental values of residential properties in the study area with neighborhood’s attributes, location and adequacy of building facilities respectively following the former. The findings of this study will be useful to the practicing estate surveyors and valuers, town planners and the government agencies responsible for property rating assessment as well as property owners and users; and other related stakeholders in housing investments and management.

ABSTRAK
Analisis kesan sifat perumahan terhadap kadar sewaan rumah kediaman telah menjadi satu cabaran yang besar dalam pasaran perumahan global sejak beberapa tahun ini. Fenomena ini berlaku disebabkan kerumitan, keunikan dan kepelbagaian komoditi perumahan dan juga disebabkan kepelbagaian ciri-ciri sosio-ekonomi perumahan di pelbagai kawasan kediaman di kawasan-kawasan geografi yang berbeza. Tujuan kajian ini adalah untuk mengkaji kesan disebabkan ciri-ciri perumahan seperti tempat tinggal, lokasi dan kejiranan terhadap kadar sewa kediaman di Minna, Nigeria. Tiga (3) kawasan kediaman telah dipilih secara rawak setiap satu iaitu kepadatan tinggi, sederhana dan kawasan kepadatan rendah metropolis untuk tujuan kajian. Soal selidik dengan soalan yang telah disediakan sebelumnya telah diagihkan secara rawak kepada 385 responden di ketiga-tiga kawasan. Seramai 337 soal selidik telah dikembalikan dan daripada jumlah itu 312 soal selidik adalah sah untuk analisis data yang diperolehi daripada kajian lapangan. Tiga (3) kategori hartanah kediaman termasuk satu bilik tidur, dua bilik tidur dan tiga bilik tidur masing-masing telah diterima pakai untuk kajian. Analisis deskriptif dan teknik analisis Standard Regresi berganda telah digunakan dalam menganalisis data kajian. Keputusan daripada analisis menunjukkan bahawa keseluruhan pembolehubah bebas yang digunakan sebagai peramal adalah signifikan terhadap ramalan nilai sewa harta kediaman di Minna metropolis. Keputusan yang diperolehi juga menunjukkan bahawa keadaan komponen bangunan merupakan faktor utama yang mengesani nilai sewa harta tanah kediaman di kawasan kajian dan diikuti sifat-sifat kejiranan, lokasi dan kemudahan fasiliti bangunan. Hasil kajian ini berguna kepada juruukur harta yanah penilai, perancang bandar dan agensi-agensi kerajaan yang bertanggungjawab untuk penilaian kedudukan hartanah dan ianya juga berguna untuk pemilik hartanah dan pengguna; dan juga kepada pihak-pihak lain yang berkaitan dalam pelaburan perumahan dan pengurusan hartanah.

CONTENTS

MASTER’S THESIS STATUS CONFIRMATION
TITLE PAGE i
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
ABSTRAK vi
CONTENTS vii
LIST OF TABLES xiii
LIST OF FIGURES xvi
LIST OF APPENDICES
LIST OF ABBREVIATIONS
xvii
xviii
CHAPTER 1
INTRODUCTION 1
1.1 Background to the research study 1
1.2 Statement of the Problem 3
1.3 Research questions 6
1.4 Aim of the study 6
1.5 Research objectives
1.6 Scope of the study
1.7 Significance of the study
1.8 Statement of the hypotheses
1.9 Research Methodology
1.10 Summary and link

CHAPTER 2
REVIEW OF LITERATURE 11
2.1 Introduction 11
2.2 Empirical literature on neighborhood characteristics that affect house prices 12
2.2.1 Neighborhood amenities that influences house prices 13

2.2.1.1 The impact of sport and leisure facilities, convenience of life and environmental quality on house prices 13
2.2.1.2 The impact of the presence and quality of educational facilities in a residential neighborhood on house prices 17
2.2.1.3 The impact of mixed land uses in a residential neighborhood on house prices 18
2.2.1.4 Impact of mountains, lakes and oceans on residential neighborhood on house prices 20
2.2.1.5 Impact of gated guarded landscape and freehold neighborhood on house prices 20
2.2.1.6 Impact of light rail transit system on residential property value 21
2.2.2 Neighborhood disamenities that affect residential house prices 23
2.2.2.1 The effect of flooding in a residential neighborhood on house prices
23
2.2.2.2 The effect of noise and dust in a residential neighborhood on house prices 24
2.2.2.3 The effect of proximity to social elements and contaminated environment on house prices 25
2.2 2.4 The impact of surface street traffic in a residential neighborhood on house prices 27
2.2.2.5 The impact of neighborhood churches on residential property values 28
2.2.3 Summary of neighborhood attributes reviewed and link 33
2.3 Empirical literature on attributes of location that influences house prices 33
2.3.1 Accessibility as a determinant factor to house price formation 36
2.3.2 Summary of review of location attributes and link 41
2.4 Impact of dwelling attributes on house prices
2.4.1 Impact of various structural attributes on house prices
2.4.2 Major structural determinants of residential property value
2.4.3 Summary of review of dwellings attributes and link
2.5 Impact of other related factors on residential house prices
2.6 Justification of variables used in the study
2.7 Conceptual framework
2.8 Definition of key terms used in the study
2.9 Glossary
2.10 Chapter summary and link

CHAPTER 3
RESEARCH METHODOLOGY
61
3.1 Introduction 61
3.2 Research approach 62
3.2.1 Research philosophical worldview 62
3.2.2 Research design
3.2.2.1 Quantitative research 63
3.2.3 Research methods
3.2.3.1 Identification of sources of data
3.2.3.2 Primary sources of data collection
3.2.3.3 Secondary sources of data collection
3.2.4 Data collection method and procedure
3.2.5 Justification for the use of questionnaire
design and its content for the study
3.2.6 Identification of target population
3.2.7 Sampling frame, sampling techniques and sample size
3.2.7.1 Area of application of the various sampling techniques employed
3.2.8 Instrumentation
3.2.9 Pilot survey
3.2.9.1 Summary and discussion of pilot survey result
3.2.10 Measurement instrument editing and restructuring
3.2.11 Administration of field questionnaires
3.2.12 Assumptions
3.3 Procedures for data analysis and interpretation
3.3.1 Data editing
3.3.2 Data coding and entry
3.4 Data analysis and interpretation techniques
3.5 Brief profile of the study area (Minna) 77
3.5.1 Physical setting 77
3.5.2 The geography and name of the ancient Minna 79
3.5.3 Population, people and culture of Minna 80
3.5.4 Economy, education and transport 80
3.5.5 Climatic form 81
3.5.6 Administrative and political condition 81
3.6 Summary and link 81

CHAPTER 4
DATA PROCESSING, ANALYSIS AND DISCUSSION OF RESULTS 83
4.1 Introduction 83
4.2 Questionnaire retrieval and validity 84
4.3 Data cleaning and screening 85
4.4 Data normality test 86
4.4.1 Descriptive statistics for items on condition of building components construct 86
4.4.2 Descriptive statistics for items on adequacy of building facilities construct 88
4.4.3 Descriptive statistics for items on locational attributes construct 89
4.4.4 Descriptive statistics for items on neighborhood attributes construct 90
4.5 Descriptive analysis of demographic variables
4.6 Reliability statistics for the study scales 92
4.7 Condition assessment of dwellings and neighbourhoods’ attributes in Minna
4.7.1 Summary of the assessment survey for condition of building components and services and neighborhood attributes
4.8 Assessment of locational attributes of the three residential density areas in Minna
4.9 Profile of current annual rental values of residential properties in various residential density areas in Minna
4.10 Analysis of the impact of housing attributes on rental values of residential properties in Minna
4.10.1 Multiple regression analysis
4.10.2 Evaluation of assumptions of multiple regression
4.10.2.1 Evaluation of the assumptions of outliers, normality, linearity, homoscedasticity and the independence of residuals
4.10.3 Model evaluation
4.10.4 Evaluation of the contribution of each independent variables
4.10.5 Empirical results
4.10.6 Individual neighborhood regression
4.10.6.1 Kpakungu regression result
4.10.6.2 Tudun Fulani regression result

CHAPTER 5

4.10.6.3 London Street regression result
4.10.7 Summary of the regression results
4.11 Summary and link
DISCUSSIONS, SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 Introduction
5.2 Discussions and links with previous related studies
5.3 Summary of research findings
5.4 Research implication and contributions to knowledge
5.4.1 Research implication
5.4.2 Research contribution to knowledge
5.5 Achievement of research aim and objectives
5.6 Solid impact of the study findings
5.7 Limitation of the study
5.8 Recommendations
5.9 Conclusion
5.10 Suggestions for further studies
REFERENCES
APPENDICES

IMPACT OF HOUSING ATTRIBUTES ON RENTAL VALUES OF RESIDENTIAL PROPERTIES IN MINNA, NIGERIA