HEDONIC MODELLING OF THE DETERMINANTS OF HOUSE PRICES IN MINNA, NIGERIA

Abstract

House price is a function of the interplay of different determinants at both micro and macro levels. This paper examines the determinants of house prices in Minna, North Central Nigeria. Particular attention was paid to the three fundamental micro determinants of house prices namely structural, locational and neighborhood attributes. Due to the thin nature of the housing market in the study area, the research utilized a sample of 91 house sales transaction data (sales price and corresponding property attributes). Hedonic based multiple regression analysis was used to determine the variables that have statistically significant influence on price of a house. The hedonic model has proved to be more useful when the sample size is not large. The results show that the type of house, its size, number of bathrooms, location, year the house was sold, condition of the house, its distance to the central business district and the availability of neighborhood facilities exert significant effect on house prices in the study area. It was recommended that henceforth, property developers should pay particular attention to these significant attributes when carrying out future developments as such attributes are believed to be appealing to the property buyers.