DETERMINANTS OF ‘TIME ON THE MARKET’ FOR RESIDENTIAL PROPERTIES IN AKURE, NIGERIA

Abstract

This research work examined the determinants of time on the market (TOM) on the residential property market in Akure. It ascertained the average time Estate Surveyors and Valuers sell residential properties in the study area and measured the price differential. It also assessed the effect of the delay in sales on the eventual sale price of the residential properties. The data for the study was collected through structured questionnaire administered on principal partners of the 20 Estate Surveying and Valuation firms in Akure as contained in the, 2013 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 2008 to 2013 were sampled and the records revealed that only 131 properties had complete data for analysis. Data collected were analysed using descriptive statistics (frequency distribution and arithmetic mean) and inferential statistics (multiple linear regression model, paired samples test and simple linear regression model). Frequency distribution table was used to discuss the socio-economic background of the respondents while mean score was used to analyse Objective Two. In addition, multiple linear regression model was used to analyse Objective One, paired samples tests was employed in Objective Three while simple linear regression model was used in Objective Four. The result of the study revealed that more vacant plots were sold in Akure than developed properties during the period. Also, the factors that mostly affect the time undeveloped residential property spend on the market before being sold in Akure include nearness to tarred road, asking price and season which were significant at 0.000, 0.004 and 0.013 respectively . On the other hand, the factors that determine the TOM for the developed residential properties include state of repairs, state of water supply, zone and convenience, which were significant at, 0.000, 0.001, 0.004 and 0.050 respectively. In addition, a significant relationship between the market time lag and the eventual sale price (0.000 and 0.002) revealed that property spending a longer time in the market would be open to hazards of sale. The study therefore recommended that Government should create and open up more housing estates where vacant land would be sold to the residents of Akure who prefer to build houses than purchase developed ones. It also recommended that property developers should pay attention to those housing attributes that influence TOM in order to enhance the marketability of their properties.