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Article
Publication date: 17 October 2016

Rotimi Boluwatife Abidoye and Albert P.C. Chan

The emerging trend in the global real estate valuation practice has led to the development of advanced valuation approaches to replace the traditional methods. The purpose…

Abstract

Purpose

The emerging trend in the global real estate valuation practice has led to the development of advanced valuation approaches to replace the traditional methods. The purpose of this paper is to investigate the extent to which real estate valuers practicing in Nigeria are aware and use these advanced approaches in real estate valuation practice.

Design/methodology/approach

Both traditional and advanced approaches were identified from the literature. An online-based questionnaire survey was administered on estate surveyors and valuers to measure their level of awareness and frequency of use of the identified valuation approaches. The feedback was collated and analyzed using descriptive statistical analysis.

Findings

The professionals are mostly aware of the traditional methods and always use the “sales comparison method” in practice. In contrast, they are not very aware of the advanced approaches and hence, only use the hedonic pricing model occasionally in practice.

Research limitations/implications

The study only focuses on the Lagos metropolis, a nationwide survey will produce more comfortable generalizable findings.

Practical implications

This is a wake-up call for the real estate regulatory bodies and indeed all the real estate professionals in Nigeria to embrace the use of the advanced valuation approaches in practice, in order to remain relevant in the international real estate practice.

Originality/value

Implementation of the recommendations of this study could help position the Nigerian real estate professionals and the industry for a global exposition.

Details

Property Management, vol. 34 no. 5
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 2 March 2012

Georgia Warren‐Myers

The purpose of this paper is to synthesise the plethora of research that has been conducted into the relationship between sustainability and market value in real estate

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9518

Abstract

Purpose

The purpose of this paper is to synthesise the plethora of research that has been conducted into the relationship between sustainability and market value in real estate, by critically analysing the research and the applicability of sustainability and value research in valuation practice.

Design/methodology/approach

The research on the relationship between sustainability and market value in real estate is examined from the perspective of its usefulness to the valuation profession in providing guidance, information and evidence to be used in valuation practice.

Findings

Existing research conducted into the relationship between sustainability and market value has not provided the valuation profession with evidence which would allow the incorporation of normative theories on the value of sustainability in valuation practice. This review highlights the lack of evidence, and the applicability of current research into sustainability and value to the valuation profession in providing guidance and information in valuing real estate incorporating sustainability.

Practical implications

This paper highlights the limited applicability of research to date in regard to the relationship between sustainability and market value for the valuation profession. The lack of historical evidence, data or information on the quantifiable effects on market value of this new trend (sustainability), leaves the valuation profession uncertain as to the relationship between sustainability and market value. There is a probable risk of valuers interpreting strategic research incorrectly, and making inappropriate adjustments or comparisons because of their lack of knowledge and limited sustainability assessment skills. Although there is an evolving body of knowledge, there is a need for extensive analysis of unbiased, evidence‐based research in individual and broader markets to provide guidance, evidence and knowledge of the implications of sustainability in the valuation of real estate.

Originality/value

The examination of research investigating the relationship between sustainability and value from a valuation perspective provides an alternative insight into the applicability of current research in valuation practice. The increasing profile and role of sustainability in the real estate sector needs to be addressed in valuation practice; however, the variety of research to date needs to be interpreted by valuers in the correct context. This paper brings to light the applicability of sustainability and value research for the broader valuation profession, and the potential implications of misuse or misunderstanding of that research.

Details

Journal of Property Investment & Finance, vol. 30 no. 2
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 1 April 2014

Joanna Poon and Michael Brownlow

The aim of this paper is to identify the competency expectations for property professionals in Australia. It further discusses differences in competency expectations…

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1110

Abstract

Purpose

The aim of this paper is to identify the competency expectations for property professionals in Australia. It further discusses differences in competency expectations between property professionals who have different professional backgrounds, such as valuers or non-valuers, and property professionals who work in different sectors or different-sized companies and who have differing amounts of experience. The competencies identified in this paper include knowledge areas, skills and attributes.

Design/methodology/approach

This paper presents the research findings of a questionnaire survey sent to Australian Property Institute members, which aimed to gather Australian property professionals' views on the knowledge, skills and attributes required to perform their roles effectively. The percentage of the respondents who provided different choices of given answers for each of the 31 knowledge areas, 20 skills and 21 attributes was identified and discussed. The professional backgrounds of the respondents were also identified to see whether these impact on competency expectations for property professionals. Content analysis was used to analyse written comments collected in the questionnaire.

Findings

The most important categories of knowledge, skill and attribute for Australian property professionals are valuation, effective written communication and practical experience, respectively. The least important are international real estate, second language and creativity. Knowledge of rural valuation is very important in Australia, although this has not been mentioned in previous studies. Professional backgrounds have a large influence on Australian property professionals' views on knowledge requirements, but less so on skills and attributes.

Practical implications

The findings of this paper can be used as guidance for property professionals in their professional development plan. In addition, property course providers can use the research findings of this paper to inform their curriculum development and redesign.

Originality/value

This project is the first to identify the comprehensive competency expectations of property professionals as a whole in Australia. At the same time, it identifies differences in the competency expectations of property professionals who have different professional backgrounds. Similar types of study have been conducted in the UK, the USA, Hong Kong and New Zealand but not yet in Australia. An understanding of the knowledge, skills and attributes required for property professionals is important for continuing professional development, curriculum development and the redesign of relevant property courses in order to maintain performance and competitiveness in the property sector.

Details

Journal of Property Investment & Finance, vol. 32 no. 3
Type: Research Article
ISSN: 1463-578X

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Article
Publication date: 4 July 2016

Rotimi Boluwatife Abidoye and Albert P.C. Chan

Real estate property has been established as a composite good, and its value is determined by many variables. The heterogeneous nature of real estate property has made…

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1772

Abstract

Purpose

Real estate property has been established as a composite good, and its value is determined by many variables. The heterogeneous nature of real estate property has made different stakeholders value these variables differently. Therefore, this study aims to identify and evaluate these sets of variables which influence residential property value in the Lagos metropolis property market, Nigeria, based on professional valuers’ perception.

Design/methodology/approach

A list of variables that influences property value was generated through literature review, and the list was used to design an online questionnaire that was administered to valuers practicing in the metropolis. The valuers were asked to rank these variables in order of significance. Their response was analysed to establish the mean score of each variable that depicts their level of significance.

Findings

In order of importance, property location, neighbourhood characteristics, property state of repair, size of property, availability of neighbourhood security and age of property are the most highly significant variables that are influential on the property value in the Lagos metropolis.

Practical implications

The findings of this study will inform all existing and prospective real estate stakeholders, including facility managers of the major determinants of the value of their investments and, at the same time, will be a tool for valuers and researchers in property value modelling.

Originality/value

This study is the first attempt to develop a framework of property value determinants in this research area in Nigeria.

Details

Journal of Facilities Management, vol. 14 no. 3
Type: Research Article
ISSN: 1472-5967

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Article
Publication date: 7 December 2018

David Wadley, Jung Hoon Han and Peter Elliott

Professionals’ market knowledge and business experience can facilitate transactions of residential property potentially impacted by stigmatised installations, such as…

Abstract

Purpose

Professionals’ market knowledge and business experience can facilitate transactions of residential property potentially impacted by stigmatised installations, such as large-scale public infrastructure. The purpose of this paper is to explore perceptions and assessments among homeowners, valuers (appraisers) and real estate agents (realtors) regarding infrastructure in general and high voltage overhead transmission lines (HVOTLs) in particular.

Design/methodology/approach

Informed by a literature review, separate surveys in Queensland, Australia, analyse via non-parametric and parametric means informational and perceptual variables concerning HVOTLs among 600 homeowners, 90 valuers and 90 real estate agents.

Findings

The findings reveal statistically significant differences in risk and valuation perceptions of homeowners, valuers and real estate agents relating to the placement of major linear forms of infrastructure.

Research limitations/implications

This study adds to a now-solid body of literature pertaining to property effects of HVOTLs. It extends the analysis among classes of real estate professionals and provides new comparisons for further analysis and commentary.

Practical implications

The results speak to property professionals, land use planning and electricity authorities. Prior research can be triangulated with that obtained here from valuers and real estate agents who act as informants, gatekeepers and confidants in the market place. Various hypotheses address specific points of professional practice.

Social implications

This study shows that property professionals’ disposition to HVOTLs and other large-scale infrastructure is likely to be a good deal more measured than that of homeowners, so that valuers and real estate agents might exercise a mediating influence in placement and installations decisions.

Originality/value

This research raises understanding of differences in market knowledge and perception of essential infrastructure among clients and property agents. As a point of difference, it concentrates on examining empirically what texts refer to as “information asymmetry” in residential real estate markets.

Details

Property Management, vol. 37 no. 2
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 19 October 2010

Alirat Olayinka Agboola, Olatoye Ojo and Abdul‐Rasheed Amidu

This paper aims to investigate and compare both real estate agents and their service consumers' perception on ethics of real estate agents in Nigeria; an emerging economy…

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2068

Abstract

Purpose

This paper aims to investigate and compare both real estate agents and their service consumers' perception on ethics of real estate agents in Nigeria; an emerging economy with less organized and transparent property market.

Design/methodology/approach

The study adopts a survey approach to research. Using Bartlett et al.'s model of determining sample size, a total of 125 firms were randomly selected from the list of registered real estate consultancy firms in Lagos metropolis. For each firm contacted (through business addresses), three service consumers were randomly selected from their archives of consumers. Questionnaires were personally administered and retrieved with useful response rates of 70 per cent and 75 per cent for real estate agents and service consumers respectively. Data emanating from the survey were analysed using frequency distribution and ANOVA analyses.

Findings

Among other findings, the results indicate that both real estate agents' and consumers' ratings of ethics of real estate agents is average on a five‐point Likert scale. Furthermore, real estate agents' self perception of the five year trend in their ethics was positive, albeit with a strong belief that commercial consideration should take precedence over an ethical stance in a real estate transaction.

Practical implications

In spite of the uniformly high self‐perception of agent ethics, most practitioners in real estate agency consultancy believe that commercial or economic considerations are more important than an ethical stance in a real estate transaction. This raises a serious fundamental issue about the essence and practical understanding of ethics by practitioners and what ethics entails in the discharge of their professional duty.

Originality/value

The paper complements the existing body of literature on real estate ethics by providing an empirical assessment of real estate agents in an emerging economy.

Details

Property Management, vol. 28 no. 5
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 1 February 2013

Ayotunde Olawande Oni

Digital divide is lack of access to and effective use of information and communication technology (ICT). It represents the difference between people with access to ICT and…

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1059

Abstract

Purpose

Digital divide is lack of access to and effective use of information and communication technology (ICT). It represents the difference between people with access to ICT and who use it effectively and those who do not. The aim of this study is to determine the level of digital divides amongst estate surveyors and valuers (recognized real estate practitioners in Nigeria). This is with a view to turning the identified digital divides into digital dividends for sustainable real estate practice in Nigeria and elsewhere.

Design/methodology/approach

In attaining the aim, primary data were collected on 3,627 corporate members of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) with questionnaires administered through the internet using SurveyMonkey, an internet‐based software complemented with bulk sms to alert them about posting of the questionnaires into their e‐mail addresses. The Culbertson's constructs for evaluating digital awareness in the USA were adapted for inclusion in the survey instrument. The finding on the estate surveyors and valuers was also compared with those on comparable professionals in the building industry to determine if the respondents are lagging behind in adopting ICT.

Findings

Based on the Culbertson's constructs, there is great digital divide between practising estate surveyors and valuers and their counterparts in advanced countries. The analysis indicated that 33.75 percent of the respondents were not committed to ICT, 26.25 percent were slightly committed, and at least 38.75 percent were somewhat committed; and the respondents were classified as “low‐tech high‐touch” professionals; and their level of ICT deployment found to be appropriate within the framework of the Nigerian National Bureau of Statistics. This implies that digital divide is not a challenge to real estate practice in Nigeria.

Research limitations/implications

The study serves as good starting block for further analysis of the setting, challenges, and practice of real estate profession in Nigeria and elsewhere with regards to ICT applications. The research posited the implication for the NIESV to organize mandatory continued professional development workshops on ICT to remain relevant in the fast moving digital society. The IT requirements, current skill base, and curricula in the higher institutions were however not examined. It is therefore necessary to carry out further research on students and faculty in the higher institutions to identify the gaps in skill and technological capabilities.

Originality/value

The findings help in specifying development activities that will enhance improvements in professional standards, build local capacity and improve transparency expected by international investors. Also, the findings provide professional bodies and policy‐makers with indications to improve and ensure sustainable real estate professional practice through continuous and life‐long training of members in ICT. It recommended capacity building, reviving of interests of practitioners, direct investment of software companies, and research as approaches to reducing the level of digital divide between practitioners in advanced countries and Nigeria in order to remain relevant in the technologically‐driven and competitive world.

Details

Property Management, vol. 31 no. 1
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 2 August 2018

Abayomi O. Ibiyemi, Yasmin Mohd Adnan, Nasir Md Daud and Chuan Yan Piaw

The aspects of sustainability are often not considered explicitly in property valuation. The purpose of this paper is to investigate the structural relationships between…

Abstract

Purpose

The aspects of sustainability are often not considered explicitly in property valuation. The purpose of this paper is to investigate the structural relationships between valuers’ support for integration of industrial sustainability into property valuation process in Nigeria and their knowledge perceptions about the potential sustainability benefits.

Design/methodology/approach

The paper compares the results of the respondents’ evaluation of the models and indicators for modelling the study population. Data were obtained from 267 real estate firms from three core Nigerian cities. The conceptual framework was developed and pattern matrices for factor indicators were extracted for the predictions and hypothesis testing using the partial least squares–structural equation modelling.

Findings

Perceived lowering of risks and cost savings are the significant predictors of the valuers’ support system (BLR→SUP (t=12.181); BCS→SUP (t=2.078)>1.196). The findings challenge the conceptual expectations as prospects of high building value, improved productivity gains and quality of life have no significant factor loadings. Moreover, potential improvement to the quality of life is not a significant mediator.

Research limitations/implications

Testing the knowledge-support systems in sustainability and property valuation could help bridge the knowledge gap in property sustainability studies.

Practical implications

This study presents evidence that can aid in decision making regarding public and private efforts to define sustainability knowledge requirements for the valuers and other stakeholders.

Originality/value

The current investigation finds that there is insufficient sustainability knowledge among the valuers. Thus, these analytical procedures can be used to predict sustainability scenarios at a global level.

Details

Property Management, vol. 37 no. 1
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 3 April 2019

Kwasi Gyau Baffour Awuah and Frank Gyamfi-Yeboah

Although several factors influence property value determination depending on the market, relevant studies in sub-Saharan Africa (SSA) often fail to analyse the impact of…

Abstract

Purpose

Although several factors influence property value determination depending on the market, relevant studies in sub-Saharan Africa (SSA) often fail to analyse the impact of factors, such as unexpired term of leasehold interest and ground rent, which are also germane to market transactions and value determination. This study aims to examine the effect of unexpired term of leasehold interests and ground rent on the valuation of residential properties in Ghana.

Design/methodology/approach

A questionnaire instrument was used to collect the views of a sample of professional real estate valuers on the relevance of these and other factors that affect value. In addition, the valuers were tasked to value a residential property located in Accra, Ghana. Ordinary least squares and quantile regression models were thereafter used to analyse the data to determine the effect of the subject variables on value.

Findings

The study finds a significant relationship between valuers’ views on the relevance of unexpired term of leasehold interest and the value placed on residential properties. Further, the respondents who viewed ground rent as an important factor in estimating values placed significantly lower values than those who viewed it as less important.

Research limitations/implications

The findings suggest that the respondents may have split opinion on the existing anecdotal evidence that market participants ignore the unexpired term of leasehold interest, an issue that should be settled in theory. The findings also highlight the diversity of opinion on some of the fundamental factors that affect value and the need to build consensus to prevent excessive variation in value estimates among valuers.

Originality/value

The study makes a significant contribution in terms of extending the existing literature by analysing the impact of unexpired term of leasehold interests and ground rent on residential property values based on empirical data, issue(s) which have often been ignored by existing studies. Findings from the study also provide insights into additional possible causes of valuation errors in Ghana and SSA, which are useful for policy formulation and practice.

Details

International Journal of Housing Markets and Analysis, vol. 12 no. 3
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 30 October 2019

Sunday Olarinre Oladokun and Manya Mainza Mooya

The pricing of professional service has been identified as one of the factors influencing the quality of service and willingness of clients to pay. However, the issue of…

Abstract

Purpose

The pricing of professional service has been identified as one of the factors influencing the quality of service and willingness of clients to pay. However, the issue of service pricing is hardly seen as an object of discourse in real estate literature, especially among valuation studies, as it is obtainable in other fields. In Nigeria, it has become the practice for some sets of clients, especially financial institutions, to fix valuers’ remuneration based on the fact that these clients have market advantage. This practice and some other issues around pricing of valuers’ services have been going on for some years with little or no research insights from academics. The purpose of this paper is to examine the pricing system of valuation services within the Lagos property market with the aim of providing information to better valuation practice.

Design/methodology/approach

This study assumes an interpretive paradigm and adopts a qualitative research approach. In-depth semi-structured interviews were conducted with 24 registered valuers practising within the Lagos property market. Snowballing sampling technique was employed in selecting the registered valuers who were active in the practice of valuation in the study area. Data collected were analysed using thematic analysis with the aid of NVivo 12 software.

Findings

This study finds that the pricing system for valuation services in the study area can be broadly categorised under “negotiation” and “fixed rate” systems while the use of the “professional scale of charges” is more or less non-existent. The study also reveals various forms by which these systems are practised, and issues associated with them as well as the effects they have on valuation practice. The study further reveals the factors responsible for the continuous striving of the present pricing system which includes valuers’ inability to enforce the professional scale, competition in the market, buyers’ market syndrome, the game of numbers and the banks’ strategy to protect their customers. The authors also found that the low pricing of valuation service poses challenges to valuation practice and encourages unprofessional conducts that affect the quality of valuation output. The study also provides, albeit limited, an evidence of the relationship between valuation fee and quality of valuation.

Research limitations/implications

This study is limited to Lagos property market and only the practising valuers. Insights from other major cities and stakeholders in service pricing like clients and regulatory authority may produce more insightful results.

Originality/value

This study provides important insights into valuers’ experience in the area of service pricing and how this affects the delivery of professional services. It also serves as the research blueprint in giving research attention to the service pricing in property valuation practice.

Details

Property Management, vol. 38 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

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