Owusu-Manu, D G; Edwards, D J; Donkor-Hyiaman, K A; Asiedu, R O; Hosseini, M R and Obiri-Yeboah, E (2019) Housing attributes and relative house prices in Ghana. International Journal of Building Pathology and Adaptation, 37(5), pp. 733-746. ISSN 23984708
Abstract
Purpose: The study of house prices has become more relevant in recent times after the global financial crisis. Using a housing data set from three regions of Ghana (collated from real estate agents), the purpose of this paper is to estimate the relative importance of housing attributes to house prices. Design/methodology/approach: The hedonic regression analysis conducted indicates that location is the most powerful determinant of house prices. Other relevant factors are the number of bedrooms, the number of floors, the total floor area, land size, age of the house and luxury finishing. Findings: The implications of these results are many. Policy wise, the study provides an evidence-based empirical study that supports the need for better urban planning to improve communities, which in turn is associated with house price appreciations. Homeowners, investors and creditors, particularly mortgage lenders could be the immediate beneficiaries. Drawing on this, improved urban planning could mitigate strategic defaults that results from house prices falling below mortgage loan balances. This is important for financial market stability. Originality/value: The paper provides a comprehensive and unique understanding of the hedonic determinants of house prices in Ghana. Future studies could examine the effect of location upon mortgage lending in Ghana.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Ghana; hedonic modelling; house prices; housing attributes; location |
| Index terms: | default, relative importance, global financial crisis, homeowner, stability, drawing, evidence, methodology, housing, urban planning, agent, bedroom, investor, Ghana, mortgage, house price, real estate, empirical study, regression analysis, future study, land, determinant, estimate, modelling |
| Subjects: | architectural elements, structural engineering, research methods, economic concepts, Geography, sociology, statistical analysis, evaluation and assessment methods, construction type, risk assessment, research design and methodology, practitioner, dispute resolution, urban planning, technical documentation, real estate economics, financial and cost management, analytical methods, economic analysis |
| Topics: | International Construction, Urban Studies, Legal Issues, Design Practice, Engineering Principles, Geographical Context, Research Practice, Business Strategy, Cost Management, Governance, Construction Technology, Stakeholder Management, Roles and Professions, Risk Management |
| Descriptive scope: | 4 PCTA |
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