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Housing attributes and relative house prices in Ghana

De-Graft Owusu-Manu (Department of Building Technology, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
David John Edwards (Faculty of Computing, Engineering and the Built Environment (CEBE), Birmingham School of the Built Environment, Birmingham City University, Birmingham, UK)
Ken A. Donkor-Hyiaman (University of Reading Henley Business School, Reading, UK)
Richard Ohene Asiedu (Department of Building Technology, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)
M. Reza Hosseini (Faculty of Science Engineering and Built Environment, Deakin University, Geelong, Australia)
E. Obiri-Yeboah (Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana)

International Journal of Building Pathology and Adaptation

ISSN: 2398-4708

Article publication date: 6 June 2019

Issue publication date: 5 September 2019

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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.

Keywords

Citation

Owusu-Manu, D.-G., Edwards, D.J., Donkor-Hyiaman, K.A., Asiedu, R.O., Hosseini, M.R. and Obiri-Yeboah, E. (2019), "Housing attributes and relative house prices in Ghana", International Journal of Building Pathology and Adaptation, Vol. 37 No. 5, pp. 733-746. https://doi.org/10.1108/IJBPA-01-2019-0003

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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