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Housing attributes and relative house prices in Ghana

journal contribution
posted on 2019-01-01, 00:00 authored by D G Owusu-Manu, D J Edwards, K A Donkor-Hyiaman, R O Asiedu, M. Reza HosseiniM. Reza Hosseini, E Obiri-Yeboah
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.

History

Journal

International journal of building pathology and adaptation

Volume

37

Issue

5

Pagination

733 - 746

Publisher

Emerald Publishing Group

Location

Bingley, Eng.

ISSN

2398-4708

Language

eng

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2019, Emerald Publishing Limited