Abstract:The need to curb the soaring trend of residential neighbourhood crime, considering its negative impact on the neighbourhood in general and property value in particular is not to be given the expected attention in academia and government settings. However, the consequences of residential neighbourhood crime are found to be devastating. Hence, this study proposes a Socio-Environmental Design Factors (SEDeF) model for residential neighbourhood crime toward improving property value in Nigeria. Purposive and system… Show more
“…Secondly, findings from this study also confirm a body of existing studies that has found strong relationship between housing rental values and urban security or insecurity based on levels of crimes (Olajide, 2008; Ceccato and Wilhelmsson, 2011; Mcllhatton et al. , 2016; Tillyer and Walter, 2018; Song et al.…”
Section: Discussion Of Resultssupporting
confidence: 87%
“…Secondly, findings from this study also confirm a body of existing studies that has found strong relationship between housing rental values and urban security or insecurity based on levels of crimes (Olajide, 2008;Ceccato and Wilhelmsson, 2011;Mcllhatton et al, 2016;Tillyer and Walter, 2018;Song et al, 2019). For example in Ibadan, South Western Nigeria Olajide (2008) found that crime intensity had negative correlation with housing values while Song et al (2019) found that a positive correlation between housing prices and criminal activities in China. The negative impact of crime on apartment prices in Stockholm, Sweden was established by Ceccato and Wilhelmsson (2011) and in the Belfast, Ireland region by Mcllhatton et al (2016).…”
Section: Discussion Of Resultssupporting
confidence: 85%
“…, 2019). For example in Ibadan, South Western Nigeria Olajide (2008) found that crime intensity had negative correlation with housing values while Song et al . (2019) found that a positive correlation between housing prices and criminal activities in China.…”
Section: Discussion Of Resultsmentioning
confidence: 97%
“…Second, some studies have also shown that residents' perception of crime risk in a neighborhood actually has negative effects on housing properties (Olajide, 2008; Buonanno et al ., 2012; Ceccato and Wilhelmsson, 2011; Cigdem-Bayram and Prentice, 2019; Song et al ., 2019). In Ibadan Nigeria Olajide (2008) found that there was a negative correlation between housing values and crime intensity. In their study of the impact of crime on apartment prices in Stockholm, Sweden Ceccato and Wilhelmsson (2011) observed that apartment prices are strongly affected by crime type like burglary, theft, vandalism, assault and robbery.…”
Section: Review Of Empirical Studiesmentioning
confidence: 99%
“…Second, some studies have also shown that residents' perception of crime risk in a neighborhood actually has negative effects on housing properties (Olajide, 2008; Buonanno et al ., 2012; Ceccato and Wilhelmsson, 2011; Cigdem-Bayram and Prentice, 2019; Song et al ., 2019). In Ibadan Nigeria Olajide (2008) found that there was a negative correlation between housing values and crime intensity.…”
PurposeWhile the declining rate of urban security and its potential effects have been globally acknowledged, the ways urban neighborhood security shapes real estate markets in African cities remain largely unexplained. The purpose of this paper therefore is to present the findings from a study of the nexus between urban neighborhood security and home rental prices in Lagos, Nigeria.Design/methodology/approachThis paper is based on the hedonic price theory, an objectively derived urban neighborhood security index (UNSI) and property rental price data in Ojo, Lagos, Nigeria. This is a quantitative cross-sectional study that employs multistage sampling survey procedure. Data are analyzed using descriptive statistics, nonparametric correlation and hedonic price function with ordinary least squares (OLS).FindingsResults show that nearly 50% of the study area is prone to insecurity and average rental values in Ojo, Lagos range from N151329.41 ($302.66) to N167333.33 ($334.67) per annum. Correlation analysis shows that home rental prices have high, positive and significant correlations (rs = 0.725 and p < 0) with UNSI. After controlling for neighborhood and structural factors, it is found that urban neighborhood security positively influences home rental values as a unit improvement in security leads to N81000.00 ($162.00) increase in rental value per annum.Practical implicationsUrban neighborhood security risk threatens residential property values, creates unintended residential mobility and destabilizes families. Findings from this study point to the facts that security is a key component of urban housing values and developers, and real estate investors must ensure that this component is well factored into property design, construction and valuation.Originality/valueThis is perhaps the first study that uses an objectively derived UNSI to study home rental price dynamics in Nigeria. The study extends knowledge on urban housing price determinants and contributes to literature on the crucial place of security in property management.
“…Secondly, findings from this study also confirm a body of existing studies that has found strong relationship between housing rental values and urban security or insecurity based on levels of crimes (Olajide, 2008; Ceccato and Wilhelmsson, 2011; Mcllhatton et al. , 2016; Tillyer and Walter, 2018; Song et al.…”
Section: Discussion Of Resultssupporting
confidence: 87%
“…Secondly, findings from this study also confirm a body of existing studies that has found strong relationship between housing rental values and urban security or insecurity based on levels of crimes (Olajide, 2008;Ceccato and Wilhelmsson, 2011;Mcllhatton et al, 2016;Tillyer and Walter, 2018;Song et al, 2019). For example in Ibadan, South Western Nigeria Olajide (2008) found that crime intensity had negative correlation with housing values while Song et al (2019) found that a positive correlation between housing prices and criminal activities in China. The negative impact of crime on apartment prices in Stockholm, Sweden was established by Ceccato and Wilhelmsson (2011) and in the Belfast, Ireland region by Mcllhatton et al (2016).…”
Section: Discussion Of Resultssupporting
confidence: 85%
“…, 2019). For example in Ibadan, South Western Nigeria Olajide (2008) found that crime intensity had negative correlation with housing values while Song et al . (2019) found that a positive correlation between housing prices and criminal activities in China.…”
Section: Discussion Of Resultsmentioning
confidence: 97%
“…Second, some studies have also shown that residents' perception of crime risk in a neighborhood actually has negative effects on housing properties (Olajide, 2008; Buonanno et al ., 2012; Ceccato and Wilhelmsson, 2011; Cigdem-Bayram and Prentice, 2019; Song et al ., 2019). In Ibadan Nigeria Olajide (2008) found that there was a negative correlation between housing values and crime intensity. In their study of the impact of crime on apartment prices in Stockholm, Sweden Ceccato and Wilhelmsson (2011) observed that apartment prices are strongly affected by crime type like burglary, theft, vandalism, assault and robbery.…”
Section: Review Of Empirical Studiesmentioning
confidence: 99%
“…Second, some studies have also shown that residents' perception of crime risk in a neighborhood actually has negative effects on housing properties (Olajide, 2008; Buonanno et al ., 2012; Ceccato and Wilhelmsson, 2011; Cigdem-Bayram and Prentice, 2019; Song et al ., 2019). In Ibadan Nigeria Olajide (2008) found that there was a negative correlation between housing values and crime intensity.…”
PurposeWhile the declining rate of urban security and its potential effects have been globally acknowledged, the ways urban neighborhood security shapes real estate markets in African cities remain largely unexplained. The purpose of this paper therefore is to present the findings from a study of the nexus between urban neighborhood security and home rental prices in Lagos, Nigeria.Design/methodology/approachThis paper is based on the hedonic price theory, an objectively derived urban neighborhood security index (UNSI) and property rental price data in Ojo, Lagos, Nigeria. This is a quantitative cross-sectional study that employs multistage sampling survey procedure. Data are analyzed using descriptive statistics, nonparametric correlation and hedonic price function with ordinary least squares (OLS).FindingsResults show that nearly 50% of the study area is prone to insecurity and average rental values in Ojo, Lagos range from N151329.41 ($302.66) to N167333.33 ($334.67) per annum. Correlation analysis shows that home rental prices have high, positive and significant correlations (rs = 0.725 and p < 0) with UNSI. After controlling for neighborhood and structural factors, it is found that urban neighborhood security positively influences home rental values as a unit improvement in security leads to N81000.00 ($162.00) increase in rental value per annum.Practical implicationsUrban neighborhood security risk threatens residential property values, creates unintended residential mobility and destabilizes families. Findings from this study point to the facts that security is a key component of urban housing values and developers, and real estate investors must ensure that this component is well factored into property design, construction and valuation.Originality/valueThis is perhaps the first study that uses an objectively derived UNSI to study home rental price dynamics in Nigeria. The study extends knowledge on urban housing price determinants and contributes to literature on the crucial place of security in property management.
There are various purposes the rental or capital values of residential investment property could be sought. However, most previous studies on factors influencing value of residential investment property are expressed in a general term; not specifically indicating whether rental or capital value. This may mislead investors in making the wrong investment decision. Using aggregation and disaggregation approach, this study examined the general and specific factors determining the rental and capital values of residential investment property in Abuja, Nigeria with a view to providing information that could guide the investment decisions. With the use of a structured questionnaire, cross sectional survey was adopted to obtain the perceptual opinion from 136 estate surveying and valuation firms in the study area. Data was analyzed with descriptive statistics of Relative Important Index (RII). The findings reveal a variation in the outcome of general factors and specific factors and that in specific term, factors influencing the capital value are significantly more in quantity and rating than the ones influencing the rental value. Out of the 23 (13 for rental and 10 for capital value) general determining factors, 11 (3 for rental and 8 for capital value) are actually significant. Average number of rooms; change in maintenance cost/taxes and the neighbourhood characteristics mainly influence the rental value of residential property while cost of construction; type of structure/quality of facilities; potential of rental growth; title and size of the land; neighbourhood attributes; inflation impact; size and structural characteristics and state of supply in property market are the main factors influencing the capital value. This noted variation is an indication for property investment stakeholders to be cautious and specific in the selection of the most appropriate determining factors for their investment objective to avoid investment decision errors.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.