In a free-market economy, market forces and other factors influence the prices buyers are willing to pay for a listed property in the property market. In practice, the estimation of the market values of properties draws largely on heuristics or is made without due consideration to a holistic range of influential factors. In most instances, this has resulted in overpricing and a risky property market marked with ups and downs. Consequently demand has been discouraged or erratic thereby impacting negatively on the property business, the construction industry and the national economy. This paper presents the results of investigations into the factors influencing the market values of residential properties in the Johannesburg CBD. The investigations were limited to the views expressed by members of the South African Property Owners Association In Johannesburg who deal in property as developers, investors, consultants and managers. The descriptive survey method was used, which consisted of qualitative and quantitative data gathering using unstructured interviews and structured questionnaires, respectively. Content analyses and the multi-attribute methods were used in the analyses of the research data. Results showed that location, market conditions, micro and macro economic dynamics and building features are the most influential factors affecting the market values of residential properties in the Johannesburg CBD. The percentage relative influences of these factors on residential property prices could be as much as 16.3, 14.8, 14.6 and 14.4 percents, respectively. The relative influences of the underlying subcomponents under each broad category of factors are presented. Adjustment of the comparable sales records in line with the relative influences of the identified factors in the establishment of the asking prices of property is recommended for a closer forecast of the prices buyers are willing to pay. This is expected to stimulate demand and sales thereby improving the fortunes in the property business, the construction industry and the national economy.
|Title of host publication||Queensland University of Technology Research Week International Conference, QUT Research Week 2005 - Conference Proceedings|
|Editors||A. C. Sidewell|
|Publication status||Published - Jul 2005|
|Event||Queensland University of Technology Research Week International Conference, QUT Research Week 2005 - Brisbane, QLD, Australia|
Duration: 4 Jul 2005 → 8 Jul 2005
|Conference||Queensland University of Technology Research Week International Conference, QUT Research Week 2005|
|Period||4/07/05 → 8/07/05|