THE EFFECT OF LOCATION ON RESIDENTIAL PROPERTY VALUE IN LOKOJA

THE EFFECT OF LOCATION ON RESIDENTIAL PROPERTY VALUE IN LOKOJA

(A CASE STUDY OF LOKONGOMA PHASE I)

ABSTRACT

Rapid and continue rise in housing and land value tends to increase in cities with transportation improvement and rapid economic and population growth. Some properties may have some physical features, design and constructional details and yet varies considerably in terms of their value due to locational advantage.A total number of one hundred and twenty three  questionnaire were administered to gather information from primary source out of which seventy five were returned and analyzed. The finding of the  study revealed that there is a very high relationship between location and property value. The study also recommend a comprehensive tarring of the roads that links the nooks and crannies of the study area to improve the value of properties in the study area.

CHAPTER ONE

1.0       INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Real property value is a multi dimensional product and the number and nature of factor that influence it value are equally of different kinds. Properties and land value tends to increase in areas with expanding transportation network, and increase less rapidly in areas without such improvement. Rapid and continue rise in housing and land prices are expected in cities with transportation improvement and rapid economic and population growth. The value of access is capitalised into the land value and access is measured through market participants, willing to pay. Essentially, this view suggest that accessibility measure may be inferred from land prices. The relationship among accessibility, property values and land use pattern has been the pre-occupation of earliest theorist with indication that travel cost were traded off against property rents and population densities from central business district (CBD) to suburbs of a mono-centric city such as Lokoja.

Quality of the environment is also another factor that affect property, value does not only descends on the physical characteristics of a building but also the environment that surround the building.

Development of various transportation moves (locational factor) have become pivotal to physical and economic development. Access to major roads provides relative advantages to property developers and property users.

Modern business, industries, trade and general activities depend on transport and transport infrastructure, with movement of goods and services from place to place becoming vital and inseparable aspect of global and urban economic survival. Stated that the factors affecting property development are generally classified into external and internal factor. This study therefore examine the effect  of location with particular attention to accessibility measure in terms of travel distance and cost and other locational characteristics on property development in Lokoja, the capital of Kogi state

1.2       STATEMENT OF PROBLEMS

This research work intends to unveil location as a determining factor in residential property values. The fact that some properties have same physical features, design, constructional detail and are in the same neighbourhood but yet their values may varies considerably, no matter their resemblance. One may be concerned having observed the location as determining factors of residential property within the study area.

1.3       AIM AND OBJECTIVES

The aim of this research is to examine the effects of location as a leading factor in determining residential property value.

To achieve the above broad aim, the following objectives shall be pursued:

1. To examine the concept related to location and property value in the study area.
2. To examine the factors that influence residential property value.
3. To assess the rental value on the residential property in the study area.
4. To assess the relationship between location of residential property and value.

1.4       RESEARCH QUESTIONS

1. What are the concept related to location and property value?
2. What the factors that influence residential property value?
3. What are the rental value on the residential property in the study area.
4. What are the relationship between location of residential property and value

 1.5       SIGNIFICANCE OF THE STUDY

This study will contribute to existing body literature by giving orientation to property investment practice within and outside the study area as to the effect of location in property value. It is also important as it will help public authority to draw more attention to accessibility and the importance of property and land value. It will further help any schoolar and students who may want to carryout a further research in the topic.

  
1.6       SCOPE AND LIMITATIONS

This study covers the effect of location as a leading factor in determining residential property value in Lokongoma Phase I, Lokoja town and some selected neighbourhood such as Adankolo, New Layout, Karaworo, GRA, Ganaja Village Fentolu. Also contrained by time limit which posed a trait in the cause of this study, cost factor is another constraint, constraint of procuring the whole material information needed and other relevant statistical data.

 1.7       OPERATIONAL DEFINITION OF TERMS

LOCATION

It simply means the positioning of something or siting of something or somebody in a particular place. Location is very important in the determination of property value. location is unique as two adjacent site may command different value depending on underlaying factor of accessibility, physical terrain, site and configuration etc.

RESIDENTIAL PROPERTY

According to Kilpatrick (1999). Residential property is a land use in which housing predominate as opposed to industrial and commercial area.Housing may vary significantly between, and through residential area. This includes single family housing, multifamily residential or mobile home.

Residential properties are used as dwelling accommodation which is otherwise known as houses. It could be rural, urban, sub-urban houses. It also varies in design e.g. a maissionette, flats, duplex, tenement etc.

VALUE

The word ‘VALUE’ does not have a specific and restricted meaning as it may mean different thing to different people. Value by its ordinary definition particularly in basic economics is the utility or satisfaction which goods and services offer. The Oxford Advanced Learning English Dictionary (6^th edition) defined ‘VALUE ‘ AS the worth of something in terms of money or other goods for which it can be exchanged for something being useful or important.

But the Estate Surveyor and Valuer is concerned with the economic concept of value. He tries as much as possible to translate value into monetary terms.

  
1.8       HISTORICAL BACKGROUND OF THE STUDY AREA

Lokoja the capital of Kogi state came into existence in 1991. The territory covers a total area of approximately 6,000 square kilometres, while the city proper is to cover a total land area of 150 square kilometres. The plan of the city was designed by the International Planning Associates, (IPA) and accepted/approved by government in 1992.

Construction work started in the early 1990s, while the seat of he state government finally shifted from Kwara to Lokoja in 1991. Efficient control, administration and management of the entire Lokoja landmass the key to successful implementation is the Lokoja master plan and the orderly development of a city is envisaged by the master plan itself. This cannot be achieved successfully without plan itself. This cannot be achieved successfully without a reliable and up to date cadastral and land records.

LOCATION

Lokoja town lies at latitude 90 North and longitude of 33⁰ east on a geological base of undifferentiated basement complex. The north – eastern part of the town is more or less continuous steep out of granite and large water surrounding the area which limit an urban development in that direction and also shaping the road network.

CLIMATE AND VEGETATION

The climate is favourable to agricultural farming, fish farming residential occupation due to the conducive weather condition. The vegetation in the town is at high standard because there is the provision of irrigation water to the farmer and routine supply of fertilizer by the state government to the farmers.

 POPULATION 

The population of the town was put at 10,872 in 1952 and 59,000 in 1963, in 1979, it was guiles at 65,000. It doubles itself every nine years. That is at the beginning of 1989 the were 13,000. The 1991 provisional census figure for Lokoja Local government of which Lokoja was the only settlement.

By the end of 1998, the population of the town was 260,000 and it was estimated that by the end of the year 2006, it will be 520,000 people in the area in question (Shola, 2010).

 INFRASTRUCTURE BASE

The are so may public services requires in a modern civilized community, especially in my case study area Lokoja, Kogi state’s the following may be listed immediately as being the most crucial ones found in – that area of study

1. Severs
2. Road drainage and construction
3. Culverts
4. Electricity ducts, cables and wires
5. Street lighting cables and posts
6. Telecommunications and postal equipment, ducts cables, posts and kiosks
7. Road safety equipment, pedestrian refuges and crossings, traffic signals and. their attendant underground ducts and cables
8. Transport services, bus routes and stops
9. Refuse disposal

COMMERCIAL ACTIVITIES

The commercial activities found in the residential area of Lokoja are as follows:

1. Location of filling stations ii, Banks
2. Supermarkets
3. Restaurant and snack bars
4. Hotels
5. Shops and stores
6. Market
7. Banks