The Specification of Hedonic Indexes for Duplexes in Lekki Peninsular Area of Lagos Metropolis
Autor: olusola • November 28, 2012 • Research Paper • 3,413 Words (14 Pages) • 1,320 Views
THE SPECIFICATION OF HEDONIC INDEXES FOR DUPLEXES IN LEKKI PENINSULAR AREA OF LAGOS METROPOLIS
Dr. G. K. Babawale, gkbabs@yahoo.co.uk
Department of Estate Management,
University of Lagos, Akoka, Lagos. Nigeria.
and
Johnson Olusola, estatessj1004@yahoo.co.uk
Department of Estate Management,
University of Lagos, Akoka, Lagos. Nigeria.
All correspondence to Dr. G.K. Babawale, University of Lagos, Akoka, Lagos, Nigeria.
+2348023166473
THE SPECIFICATION OF HEDONIC INDEXES FOR DUPLEXES IN LEKKI PENINSULAR AREA OF LAGOS METROPOLIS
Abstract: This study empirically investigated the impact of micro-theoretical variables on prices of duplexes in Lekki Peninsular area of Lagos metropolis and also demonstrated how the variables were capitalized into house prices. The hypothesis that house prices are dictated by a combination of housing attributes was tested with a standard hedonic model using a sample of 188 duplexes sold between 2006 and 2010. An adjusted R² statistic of 0.728 suggests that both the explanatory and predictive power of the resultant model is satisfactory. Each of the sixteen explanatory variables involved manifested their a priori signs and is significant except for quality of sanitary (bath/toilet) wares, availability of shopping centers and availability of swimming pool. The results therefore suggest that structural attributes, and particularly attributes that border on convenience, comfort and display of affluence, constitute the main determinants of duplexes’ prices in the study area. By giving particular attention to these attributes, developers of duplexes in the study area would be able to build to meet purchasers’ tastes and preferences thereby promoting marketability and sustainability in the sub-market under reference. Furthermore, the model provides an alternative valuation technique which is statistically defensible, more rational and potentially more reliable than conventional techniques as it used available information more efficiently while affording greater flexibility in incorporating sustainability features into real estate valuation.
Keywords: house prices, micro-theoretical variables, hedonic model, Nigeria.
Introduction
A house is a heterogeneous good as its price depends
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