An Overview of Macro-Economic Determinants of Real Estate Price in Nigeria

Alkali, Musa Abubakar; Sipan, Ibrahim; Razali, Muhammad Najib

doi:10.14419/ijet.v7i3.30.18416

Cited by 12 publications

(6 citation statements)

References 29 publications

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“…With respect to the results, a one percent rise in real income increased housing market prices in China by 0.441% in the near term and 0.343% in the long run. These results are related to Abubakar Alkali et al (2018), who investigated the association of macroeconomic variables, including gross domestic product, with residential prices in Nigeria. He presented that GDP has a positive and significant effect on determining the price of residential property.…”

Section: Housing Market In Chinamentioning

confidence: 72%

Oil prices and gold prices on housing market in China: novel findings from the bootstrap approach

Ali

Samour

Joof

et al. 2022

IJHMA

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Purpose This study aims to assess how real income, oil prices and gold prices affect housing prices in China from 2010 to 2021. Design/methodology/approach This study uses a novel bootstrap autoregressive distributed lag (ARDL) testing to empirically analyze the short and long links among the tested variables. Findings The ARDL estimations demonstrate a positive impact of oil price shocks and real income on housing market prices in both the phrases of the short and long run. Furthermore, the results reveal that gold price shocks negatively affect housing prices both in the short and long run. The result can be attributed to China’s housing market and advanced infrastructure, resulting in a drop in housing prices as gold prices increase. Additionally, the prediction of housing market prices will provide a base and direction for housing market investors to forecast housing prices and avoid losses. Originality/value To the best of the authors’ knowledge, this is the first attempt to analyze the effect of gold price shocks on housing market prices in China.

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Section: Housing Market In Chinamentioning

confidence: 72%

Oil prices and gold prices on housing market in China: novel findings from the bootstrap approach

Ali

Samour

Joof

et al. 2022

IJHMA

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“…The results from Table 3 below reveal that the during the first cycle, the recovery phase (a) (Remoy et al , 2019; Canepa et al , 2020; Huang, 2019; Alkali et al , 2018; Clayton, 2020; Roulac, 2020, Barras, 2007; Locurcio et al , 2020; Wang and Croucher, 2021; Wisniewski and Brzezicka, 2021; Harnos, 2018; De Stefani, 2021; Pai and Wang, 2020; Jakimowicz and Kulesza, 2017; Grum and Govekar, 2015; Bednarek et al , 2021; Duca et al , 2021; Toledano, 2019) had a total of 3,215 properties transferred, and valuing to a total of P620,708,121.6. Expansion phase (a) had a total of 3,557 properties transferred and with a total value of P2,312,546,275; oversupply phase (a) consisted of a total count of 2,261 properties transferred and a total value of P4,161,698,812.00.…”

Section: Resultsmentioning

confidence: 99%

“…The study showed that housing prices are closely related to business cycle and there is a close relationship between financial cycles and the housing market cycles (Canepa et al , 2020). In addition, a study on macro-economic determinants of real estate price in Nigeria showed that there is a close relationship between real estate residential price and macroeconomic variables in the Nigerian economy (Alkali et al , 2018; Jakimowicz and Kulesza, 2017). Therefore, the impacts of these real estate cycles should not be ignored or oversimplified due to their impacts on property values.…”

Section: Introduction and Background Of The Studymentioning

confidence: 99%

An assessment of real estate cycles and their impact on property values in Gaborone, Botswana

Kampamba

Kachepa

Lesobea

2022

IJHMA

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Purpose The purpose of this study was to assess real estate cycles and their impact on property values in Gaborone, Botswana. Investors and real estate professionals in Botswana rarely assess property cycles when purchasing property. This study therefore, aims to assess whether real estate cycles do exist, their duration and the type of real estate cycle that Botswana experiences. Design/methodology/approach Data was collected from primary and secondary sources. This included sourcing out information at the Deeds Registry Office in Gaborone on residential property sales and a questionnaire to 100 property investors. A record was made of properties that were sold for the period of 16 years starting from the year 2000 to 2016. Secondary data on the other hand was also collected from published and unpublished books, academic journals, professional journals, magazines, reports and monographs. A quantitative approach was used in this study. Data was analysed using Microsoft Excel and subsequently presented in form of tables and graphs. Findings The findings from the literature review revealed that there are four phases in the real estate cycles (recovery, expansion, oversupply and recession) and each has distinct features that an investor must be aware of to avoid consequences in the property market. The results from the data analysis revealed that real estate cycles do exist in Botswana as identified during the past 16 years. The cycle that Botswana experiences is called the kitchen cycle. It was also evident that Botswana experienced three cycles lasting five to six years each. Furthermore, it was discovered that all phases in the real estate cycles affect property values. Research limitations/implications There is relatively little information about property cycles and their timing in Botswana. Therefore, this study may assist valuation surveyors to make promptly informed decisions on property investment through cycle assessment and hence positively inform the public and financial stakeholders. Society might find this beneficial in as far as decision-making is concerned when thinking of investing in real estate. The current system at the deeds office is cumbersome and time consuming, thus making it difficult for the researchers and possibly the public to analyse the property market. This study therefore, may encourage the Deeds Registry Office to computerize their records. Practical implications There is relatively little information about property cycles and their timing in Botswana. Therefore, this study may assist valuation surveyors to make promptly informed decisions on property investment through cycle assessment and hence positively inform the public and financial stakeholders. Social implications Society might find this beneficial in as far as decision-making is concerned when thinking of investing in real estate. Originality/value To the best of the authors’ knowledge, this paper is the first of its kind in Botswana to extend the knowledge of real estate cycles and their impact on property cycles in Botswana.

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“…Supply and demand in the real estate market can be seen as determinants of housing price. Supply of housing is negatively correlated with the interest rate [8]. As the early investment stage of real estate development is essential in the market, most of the investors gain loans from banks, in this case as soon as the interest rate increases, costs will push upwards.…”

Section: Housing Price and Interest Ratementioning

confidence: 99%

Analysis on Housing Price Using Macroeconomic Indicators in China

Zhao

2024

HBEM

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In China, one of the most important stimulations in economic development has belonged to real estate market after the reform and opening, and it also contributes a lot to the financial market. However, there are many arguments nowadays, believing that Chinese real estate market is on the process of bubbles, almost about to burst. This study aims at discussing the influences of some macroeconomic indicators on price of commercial housing in China between 2013 and 2022. GDP, interest rate, inflation rate and money supply are chosen to be the independent variables. Using correlation and regression models, the results show that the indicators are correlated with each other. The analysis shows that there is a strong positive correlation between China’s GDP and commercial housing price which is the key for future economic development. Inflation positively correlates with the commercial housing price and a strong negative correlation is found between commercial housing price and interest rate and money supply. This research suggests that government should regulate and control macroeconomic indicators to protect the development in real estate market.

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An Overview of Macro-Economic Determinants of Real Estate Price in Nigeria

Cited by 12 publications

References 29 publications

Oil prices and gold prices on housing market in China: novel findings from the bootstrap approach

Oil prices and gold prices on housing market in China: novel findings from the bootstrap approach

An assessment of real estate cycles and their impact on property values in Gaborone, Botswana

Analysis on Housing Price Using Macroeconomic Indicators in China

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