Housing attributes and relative house prices in Ghana

Owusu-Manu, De-Graft and Edwards, D.J. and Donkor-Hyiaman, Ken A. and Ohene Asiedu, Richard and Reza Hosseini, M. 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 2398-4708

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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
Identification Number: https://doi.org/10.1108/IJBPA-01-2019-0003
Date: 14 October 2019
Uncontrolled Keywords: location, Ghana, house prices, housing attributes, hedonic modelling
Subjects: K200 Building
Divisions: Faculty of Computing, Engineering and the Built Environment > School of Engineering and the Built Environment
Depositing User: Gemma Tonks
Date Deposited: 21 Sep 2020 13:46
Last Modified: 21 Sep 2020 13:46
URI: http://www.open-access.bcu.ac.uk/id/eprint/9919

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