ADOPTING THE HEDONIC PRICE OF RESIDENTIAL PROPERTIES’ ATTRIBUTES TO IMPROVE IKEJA GRA IN LAGOS STATE NIGERIA.
Abstract
The aim of this study is to ascertain the residential property attributes that contribute more to the rents in high income residential sub-market of Ikeja GRA, Lagos State for purposes of priority improvement. In order to achieve this aim the study identified certain residential property attributes by field observations; examined the effect of those attributes on house; and extracted the attributed that contribute more to the rents in the study area. A5-point likert scale opinion naire was administered to 240 households in the study area and the relative impact index was employed in ranking the significance of the attributes of residential properties to the rents. The significance of the effect of the attributes on rent price were relatively tested using a hedonic house pricing model. The results show that among the considered attributes, number of bedrooms and neighourhood quality are two major attributes that influence house prices of residential properties in Ikeja, GRA positively. Waste disposal also has a positive significant influence but not as significant as the duo aforementioned: while proximity to Central Business District and access to portable water contrastingly have negative influences on rent price. It is therefore recommended that developers and policy makers should give appropriate improvement consideration to the suppliers of the housing attributes namely: number of bedrooms, neighbourhood quality, and waste disposal to residents of Ikeja GRA in Lagos State.
Keywords: Attributes, hedonic model, pricing, residential property.
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