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PRICE CONCESSION ON AKURE RESIDENTIAL PROPERTY MARKET

  1. ADEYEMO DELE ISAAC

Abstract

This research work examined the price concession on vacant land and developed residential property market in Akure, Nigeria. The data for the study was collected through structured questionnaire administered on the 20 Estate Surveying and Valuation practising firms in Akure as contained in the, 2018 register of the Heads of firms of the Nigerian Institution of Estate Surveyors and Valuers, Ondo State Branch. The records of the past sales transactions of the Estate Surveying and Valuation firms from 2013 to 2018 were sampled and the records revealed that only 131 properties had complete data for analysis purpose. The data collected were analysed using descriptive (frequency table and arithmetic mean) and inferential statistics (paired samples test). The result of the study revealed that among the vacant land, properties in the Transition area, peripheral area and the GRA were significant with t (23)=3.609, p = 0.00; t (35)=3.045, p = 0.004 and t (20)=2.351, p = 0.029 respectively. These results suggest that there is a significant difference between the list price and sale price of undeveloped land in the area with properties in the peripheral area having the highest concession in real term, followed by those in the transition area and then the GRA. The study also revealed that among the developed residential properties, those in the transition area are more significant {t (28)=5.339, p = 0.000} than those in the GRA {t (4)=1.928, p = 0.126}.. The test results above show a wide price difference in the zones especially among the developed properties and reveal the overpricing of properties in the transition area by the property owners. It also shows that undeveloped properties are sold close to their asking price than developed properties. The study therefore recommended that seeing that the properties are often sold at concession in Akure, property owners should be prepared to sell their properties at prices lower than the list price.
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