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Predictive Capacity Of Asking Price On Property Sales Price In Emerging Market: Evidence From Lagos, Nigeria

Author

Listed:
  • A. Olaleye
  • B. G. Ekemode
  • D. T. Olapade

Abstract

PURPOSE: With a focus on Lagos property market, Nigeria, the paper analysed the relationship between asking/listing price, time-on-market and sales price of residential property assets and determined the predictive capacity of asking prices and timeon-market on the eventual sale prices.DESIGN/METHODS FOLLOWED/APPROACH: Transaction data on listing prices, time-on-market and sales prices involving one hundred and thirteen (113) residential properties were collected from practitioners in Lagos property market. Ratio analysis, skewness and correlation analysis were used to establish the relationship between asking and sales price of the properties, while regression analysis was used to determine the predictive power of asking price and time-on-market on sales price.FINDINGS: The results showed that the time-on-market of residential properties in the market averaged 145.82 (4 months 26 days). Also, the results showed that there was a strong significant (0.01 level) relationship between the asking price of the properties and sales price at R value of +0.995. The real percentage offered between asking price and sales price of residential properties in the market averaged 87.42%, which amounted to 12.58% off the asking price. The results also revealed that asking price and time-on-market explained about 99% of the variation in the sales price. On individual level, asking price had greater impact at t = 104.657, p

Suggested Citation

  • A. Olaleye & B. G. Ekemode & D. T. Olapade, 2015. "Predictive Capacity Of Asking Price On Property Sales Price In Emerging Market: Evidence From Lagos, Nigeria," AfRES afres2015_132, African Real Estate Society (AfRES).
    • Handle: RePEc:afr:wpaper:afres2015_132
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    More about this item

    Keywords

    asking price; predictive capacity; property asset; ratio analysis; Sales Price; time on sale;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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