Residential market development in sub‐Saharan Africa

Abstract

Purpose -There is a general consensus that residential submarkets exist, but the basis upon which these are specified remains the subject of debate. The purpose of this paper is to model data on different residential locations in Ghana to show how the submarkets have performed over the past 16 years. Design/methodology/approach -The paper employs hedonic modelling based on 3,250 sale transactions and 1,130 rental transactions from 1992 to 2007. Findings -The results demonstrate that five residential real estate characteristics -location, detached, landscaping quality, gross internal areas and plot size -predominate in the explanation of both rental and transactions prices across all submarkets. They also highlight points of variation between the submarkets. An understanding of the impact of these features on residential price and rent is important for capital and rental valuation. Originality/value -This paper analyses historic performance of the residential market, both at the aggregate and disaggregate level to place the housing market in an investment context.

Residential Rental Market in Ghana – Empirical Examination of Submarket Existence

“…Previous studies suggested submarket existence based on several market segmentations (Schnare & Struyk 1976;Goodman 1978;Allen et al 1995;Fletcher et al 2000;Goodman & Thibodeau 2007;Anim-Odame et al 2010a;Anim-Odame et al 2010b;Wu & Sharma 2012;Wheeler et al 2014). The results suggest that submarkets exist for a structural segmentation of the market than for a full span of spatial segmentation.…”

“…The 18 th AFRES ANNUAL CONFERENCE 2018 analysis and this is very useful in appreciating market dynamics and making market predictions (Wheeler et al 2014). Housing markets research continues to receive little attention from researchers and research in this area is characterised by data unavailability and asymmetries (Anim-Odame et al 2010a;Anim-Odame et al 2010b).…”

“…There is the general agreement that housing sub-markets do exists (Anim-Odame et al 2010a;Anim-Odame et al 2010b;Jones & Watkins 2009:78).Submarket definition is an important aspect in housing market analysis and this is very useful in making market predictions (Wheeler et al 2014). A housing submarket can be defined as "an area where there are statistically significant and enduring price differences for some commodity or housing characteristic in relation to the overall market or other similarly defined areas within it (Maclennan & Tu 1996).…”

“…There is the general agreement that housing sub-markets do exists (Anim-Odame et al 2010a;Anim-Odame et al 2010b;Jones & Watkins 2009:78) and there are standard acceptable statistical tests for the existence of such (Schnare & Struyk 1976). Submarket definition is an important aspect in housing market…”

Stakeholders’ Perception of Residential Rental Value Determinants in Ghana

“…In Nigeria (Arimah, 1992;Adegoke, 2014), Kenya (Gulyani & Talukdar, 2008), Togo (Choumert, Kere, & Laré, 2015) and Uganda (Knight, Herrin, & Balihuta, 2004), the extant literature has focused on the effects of specific location and neighbourhood attributes on rental value. In Ghana, for example, studies such as Anim-Odame et al (2010a), Anim-Odame et al (2010b), Owusu-Ansah (2012a), Owusu-Ansah and Abdulai (2014), Owusu-Ansah et al (2017), have relied on data from land sector agencies and valuation reports to examine the dynamics of the property markets in Kumasi, Accra and Tema. These studies, however, were limited to residential property values and price dynamics.…”