| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: PREFERENCE-BASED FEASIBILITY STUDY FOR PREMIUM APARTMENTS IN INDONESIA |
– by Raden Aswin Rahadi, Ameliana Rahmawaty, Kurnia Fajar Afgani, Dwi Rahmawati and Nur Arief Rahmatsyah Putranto
Abstract
This research aims to analyze the most optimistic scenario of a financial feasibility study for apartment product in South Bekasi, Indonesia. The location was selected due to the plan by the property developer to conduct a development in the area. It is a premium apartment enthralled-market towards differentiation strategy; by providing luxury facilities; however, the market response is negative. To determine adequate facilities, apartment unit size, and unit prize, the authors have evaluated the most feasible scenarios. These scenarios are developed using the worst to the very optimistic patterns that can be achieved through financial analysis. A market survey was conducted to analyze customer preferences. There are nine factors of customer preferences that have been analyzed in this research encompassing specific location, design and concept, facilities, accessibility, liveability, reinvestment value, the reputation of the developer, physical quality, and floor plan. Data were collected from a total of 252 respondents, consisted of apartment owners and future apartment owners. This study used descriptive statistical analysis via average analysis. The market survey results were then used to develop the scenarios for feasibility studies in this research. Nine scenarios were carried out to evaluate the most optimistic feasibility study. All the scenarios produced positive NPV and accepted IRR, with Payback Period faster than the required and/or requested time. The smallest IRR produced is 12.45%, which is higher than the Weighted Average Cost of Capital of 10.9%. These findings show that even in the worst situation, this project is feasible to use the modified assumptions discussed earlier.
Keywords: Premium apartment, consumer preference, scenario analysis, ideal price analysis, feasibility study
PREFERENCE-BASED FEASIBILITY STUDY FOR PREMIUM APARTMENTS IN INDONESIA
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: ADOPTING GREEN BUILDING TECHNOLOGIES FOR SUSTAINABLE DEVELOPMENT: INSIGHTS FROM HARARE, ZIMBABWE |
– by Average Chigwenya and Trish Isheanesu Zhakata
Abstract
Green building is a fast growing concept that acts as a cardinal instrument of sustainable development, being proven as crucial in the achievement of sustainable development goals. The construction industry is seen as a critical player in the achievement of sustainable development because it makes huge contribution to the environmental degradation. However, in Zimbabwe, the adoption of green building technologies has been very slow, which means that the contribution of the built environment to sustainable development is apparently very minimal. The present study attempts to situate the Zimbabwean construction industry in the sustainable development framework. Technology is the cutting edge of development in the contemporary cities and the adoption of technologies in the construction industry will go a long way in attaining sustainable development. The study also examined the barriers to sustainable construction in the country using Harare as the case study. The study used qualitative methods to collect data. In-depth interviews and observations were employed. The research observed that there is very minimal adoption of green building technologies in Harare with only three buildings that have incorporated these technologies the rest are conventional buildings. Technology in the construction industry is therefore minimally used in the city of Harare and this has severe consequences on sustainability. The major reason for poor adoption of green technologies include lack of government policy, general lack of information and understanding on the need for green buildings, and the hostile economic environment in the country. The study therefore recommends that government should intervene with policies and regulations that promote green technologies.
Keywords: Zimbabwe, green building, sustainable development, building technology, qualitative
ADOPTING GREEN BUILDING TECHNOLOGIES FOR SUSTAINABLE DEVELOPMENT: INSIGHTS FROM HARARE, ZIMBABWE
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: REAL ESTATE-BACKED MORTGAGES AND ALTERNATIVE RECOVERY TECHNIQUES: EVIDENCE FROM SELECTED BANKS IN TANZANIA |
– by Jonathan Mukiza Peter Kansheba and Judith Jacob Iddy
Abstract
Inefficiencies accompanying foreclosures in recovering outstanding debts of real estate-backed mortgages have necessitated banks and other mortgage lenders to opt for alternative recovery techniques. Extant studies have focused much on the application of workouts mainly in developed economies (which are characterized by well-established real estate and financial markets) with less attention from emerging economies. This study aimed at exploring how banks in Tanzania apply alternative recovery techniques in real estate-backed mortgages. A qualitative approach was used to collect the data from multiple commercial banks in Tanzania. Interviews, annual reports, and government documents were used to triangulate the information. Findings revealed that different forms of workouts are preferred. The most preferred technique was mortgage modification, followed by mortgage refinancing. Other workout techniques such as forbearance, transfer of debt to a new borrower and short sale are minimally applied. Likewise, the banks were found applying the scare-tactics to enforce the customers do all they can to clear their debts before considering the use of the workouts. The study recommends that to facilitate optimal workouts, all stakeholders including the government, the bank systems, borrowers, and real property professionals must jointly cooperate for mutual benefits. The study proposed that further research could explore the fraudulent practice of borrowers that limit operationalization of workouts. Moreover, an investigation on whether borrowers’ benefit by changing terms of their repayment could be made. Finally, further studies are needed to investigate whether there is heterogeneity in the application of workouts between commercial and residential mortgage with a view to establishing whether borrowers’ default intentionally or not.
Keywords: Real estate-backed mortgages, mortgage modifications, mortgage refinancing, forbearance, short sale
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: ASSESSMENT OF URBAN PUBLIC SPACES WITHIN SHOPPING MALLS: YOUTH PERSPECTIVE IN THE CITY OF COLOMBO |
– by Githmi Sunari Nambuge, Mutu Tantrige Osada Vishvajith Peiris and Kalugalle Gedara Priyanga Kalugalla
Abstract
Cities are the engines of economic growth. With urbanization, the pressure on urban lands for production and consumption based land use is increasing. In this context, most cities endeavor to keep public spaces for people interaction especially in the form of open public space; and in this setting, urban dwellers tend to use alternative public spaces such as leisure parks, malls and arcades. This study seeks to identify the role of urban public spaces (UPS) in shopping malls in the city scale by comparing the use of five (5) internal and external factors – namely physical features, social activities, accessibility, land use mix, and also memories and experiences. The key user group considered was youth between the age group of 18 to 30 years and questionnaire surveys and semi-structured interviews were conducted in a span of 08 weeks. Analysis of the primary data was conducted through SPSS statistical software and narrative inquiry assessment was conducted to validate the survey outcomes. The findings revealed that internal features including physical and social factors were the most significant aspects for the youth to sense shopping malls as urban public spaces (UPS). Also the youth has been influenced by the surrounding leisure & recreation facilities to gain a sense of the shopping malls. Urban public spaces in shopping malls could be identified as a better alternative space for public parks and playgrounds from the youth perspective. This research revealed that size and activity mix within public spaces in shopping malls have played a significant role in the long term sustainability of functional efficiency.
Keywords: Urban public space, shopping malls, youth, sense of place
ASSESSMENT OF URBAN PUBLIC SPACES WITHIN SHOPPING MALLS: YOUTH PERSPECTIVE IN THE CITY OF COLOMBO
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: EVALUATION OF MATERIALS WASTE REUSE METHODS ON CONSTRUCTION SITES IN IBADAN METROPOLIS, NIGERIA |
– by Olusola Festus Akinradewo, Oluwakemi Elizabeth Ogunmola and Oluwaseyi A. Awodele
Abstract
The construction industry is affected by the continuous generation of waste and poor waste management. Thus, waste management has become a major concern in the industry, as waste cannot be eliminated due to off-cuts of materials from the irregular shape, change in design during construction cause diverse waste. This study, therefore, assesses material that is prone to waste and identifies methods of reuse on construction sites. A pilot survey on registered building construction firms in which head-offices are located within the Ibadan metropolis was conducted based on the list of top construction companies obtained from the Bureau of Public Procurement in Oyo State, Nigeria. “Five” construction firms confirmed they practice waste management and shared their experience on worksites. A qualitative research approach was used to evaluate the objectives of the study. Content analysis and frequency were used as the basic analytical tool of the study. Results show that repurpose, remanufacture and salvage methods are proactive reuse methods to achieve low waste generated on construction sites. The study concluded that the use of reusable construction materials waste on construction sites will promote quality materials usage and save time taken to purchase new materials.
Keywords: Construction sites, materials, waste, reuse, methods
EVALUATION OF MATERIALS WASTE REUSE METHODS ON CONSTRUCTION SITES IN IBADAN METROPOLIS, NIGERIA
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: ASSESSING THE FACTORS THAT ACCOUNT FOR VARIATIONS IN RESIDENTIAL PROPERTY INVESTMENT RETURNS RELATIVE TO INFRASTRUCTURE CONDITIONS IN NORTH CENTRAL NIGERIA |
– by Adekunle Sunday Adeogun and Shien Stephen Kuma
Abstract
Variation in the returns on residential property investment in the same region or location in spite of availability of infrastructure is a course for action. This paper assessed the factors that account for the variations in residential property investment returns in relation to infrastructure conditions in the North Central Nigeria. Data were collected and analysed from 765 closed-ended questionnaires administered through stratified sampling technique in Abuja, Jos and Ilorin respectively. Descriptive and inferential methods were adopted to analyse data collected. The result revealed a better rate of return on residential property investment in Abuja than Jos and Ilorin and a significant variation in the rate of returns existed across the 3 cities. Analysis also show that infrastructure conditions are better in Abuja, good in Jos and fair at Ilorin as assessed using condition index developed through the scoring analysis and measured against the standard rating developed by AAPPA (2010). Further, result from factor analysis indicates that, infrastructure conditions has accounted for 74.087% variation in the rate of return on residential property investments in the study area. Two (2) main categories of infrastructure types are responsible for such variation with the first ‘Aesthetic factor’ accounting for 54.56% with infrastructure type such as recreation, drainage, waste disposal and streetlight. The second types are labelled ‘Freedom Factor’ with power (electricity), access roads, security, education, health, and water supply. The study concluded that variation in residential property investment returns is influenced by availability and functionality of infrastructure. A recommendation of stakeholders in real estate investment consultation was made to assist in making best investment decision relative to infrastructures that are responsible for higher returns on property investment.
Keywords: Infrastructure, neighbourhood, property investment, residential property, returns
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: IMPLEMENTATION OF ENVIRONMENTAL SUSTAINABILITY STRATEGIES FOR REAL ESTATE DEVELOPMENT IN DEVELOPING NATIONS: AN EMPIRICAL STUDY FROM GHANA |
– by Iddrisu Kasim, Ibrahim Sipan, Dzurllkanian @ Zulkarnain Daud, Kamalahasan Achu and Ebenezer Afrane
Abstract
Real estate development is an important physical development activity in every economy. However, conventional real estate development poses multiple threats worldwide to environmental sustainability especially in emerging economies. As a developing country, Ghana is one of countries that did not attain Millennium Development Goals (MDG7 for instance) before the promulgation of Sustainable Development Goals (SDGs). Therefore, this paper examined the main environmental sustainability strategies implemented by real estate developers in Ghana to safeguard the environment. After synthesizing relevant literature on real estate development in the context of sustainability, a conceptual basis for the research was established, then a closed-ended questionnaire was set and used to gather field data from purposively sampled developers from Accra and Tema Metropolitan areas which are noted for active real estate development in Ghana. Using descriptive (frequencies and weighted mean ranking) and inferential (chi-squared) statistics, the field data was analyzed using SPSS v23. The analysis revealed that out of the ESS attributes for real estate development established from the literature, less than 30% were mostly implemented in the country. With a p-value of 0.05 (chi-squared), none of the main attributes of Energy Efficiency (EE) and Water Efficiency (WE) strategies were implemented during the post construction stage of real estate development (RED) process albeit they implemented at the pre-construction to the construction stages. However, except one of the three Sustainable Site Planning and Management (SSPM) strategies which was not implemented in the pre-construction stage, the rest were implemented through the RED process. Hence, the level of implementation of strategies SSPM, EE, WE and construction materials and resources efficiency (CMRE) for real estate development was generally low. As a result, stakeholders in the physical development process of the country need to significantly influence real estate developers to implement more environmentally efficient strategies in real estate development.
Keywords: Environmental sustainability, sustainable development strategies, real estate development, developing country, Ghana
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: FACTORS AFFECTING LAND TITLING DURING REGULARIZATION OF INFORMAL SETTLEMENTS IN DAR ES SALAAM TANZANIA |
– by Simion Daudi Wankogere and Samwel Sanga Alananga
Abstract
The nature and characteristics of informal settlements in Tanzania indicates that informal landholders face a number of constraints attributable to weak land tenure security. In the beginning of 2016, the government undertook major initiatives to regularize informal settlements with limited success on land title uptake. This paper investigates the landholders’ willingness to change land tenure status and constraints faced thereof based on a dataset of 228 questionnaires, interviews and focus group discussions from informal settlements land occupiers in three wards of Dar es Salaam City, Tanzania. The findings indicate that despite a relatively lower rate of land title uptakes in the study areas, landholders are relatively more willing to change their land tenure status. Among the constraints identified include the costs and longer time taken to process the titles which were observed to be the most serious obstacles. Moreover, the oldest age group was observed to be the most reluctant age group to change tenure status when compared to relatively younger age groups although they were mostly aware of the benefits of changing tenure status. Furthermore, the findings indicate that, during title processing, the oldest age group faced the least constraints among the age groups studied. Since the oldest age group are the majority landholders, their reluctance to process title documents significantly reduces the number of title documents issued. In terms of education, the findings show that the highly educated groups have relatively lower willingness to change tenure status than other education groups. Such observation suggests that the more a landholder is educated, the more he or she is aware of the title benefit but the less likely him or her is to process a land title document. In terms of policy implication, for the poor class in informal settlement, regularization cost reduction could be an effective means to facilitate take up of land titles during regularization program though the same policy initiative may not work among the highly educated. For the highly educated and probably the rich, an informality tax could work, provided cheaper mechanisms to collect such tax are devised.
Keywords: Informal land tenure, land tenure security, perceived protection of rights, regularization, Tanzania
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: A MODIFIED UK REAL VALUE/SHORT-CUT DCF MODEL FOR THE VALUATION OF A NIGERIAN SUB-LEASED COMMERCIAL PROPERTY |
– by Joseph Obaje Ataguba
Abstract
A UK real value/short-cut DCF model that addresses the valuation of geared profit rents generated by sub-let commercial investment properties especially in climes with nationalized land policy has been elusive. This study examines the modification of the extant UK real value/short-cut DCF model for the valuation of head-leased occupancy rights with fixed and non-revisable ground rents pursuant to the provisions of the Nigeria Land Use Act. The model is developed by blending the inputs of the modified rational model with that of the Crosby’s real value/short-cut DCF model leading to a valuation model that appears simplified compared to the existing UK contemporary value models. The gearing effect for the hypothetical case of sub-let head-lease occupancy right in Nigeria is manifested as having a diminishing impact of fixed ground rent on profit rent calculation. For the valuation case study involving this hypothetical head-leased occupancy right in Nigeria, it was found that the modified UK real value/short-cut DCF model produced valuation that is identical to those churned out from the full DCF, modified rational, and Crosby’s real value/short-cut DCF models. For the same hypothetical case study, less than 1% difference is observed between valuations from the all risks real yield (ARRY) model, which evolved in New Zealand and the valuation produced from the modified UK real value/short-cut DCF model, thereby validating all methods against each other. In consonance with the International Valuation Standards pertaining to income valuation approach, a sustained pedagogy of emerging real value models alongside the extant nominal valuation models is suggested as a way forward. Nevertheless, the modified UK real value/short-cut DCF model is recommended as an alternative to the extant variants of real value and explicit DCF techniques for the valuation of sub-let head-lease occupancy rights with fixed/non-revisable ground rents payable especially in climes with nationalized land policy.
Keywords: Geared profit rent, real value/short-cut DCF, right of occupancy, head-lessee’s interest, property investment valuation
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: COLLABORATIVE GOVERNANCE IN LAND ACQUISITION AND AGGREGATION PRACTICES: THE IMPACTS ON NEIGHBOURHOOD FUNCTIONALITIES IN TANZANIA |
– by Samwel Alananga, Elitruder Makupa and Upendo Matotola
Abstract
In urban development projects, the amount of land needs to be large enough to support not only the intended development but also the subsequent well-functioning of the neighbourhood through enhanced accessibility, service provision and liveability in general. Obtaining land for public goods and services at neighbourhood level may however be difficult especially in developing countries’ cities where the formal-informal continuum hampers the effective urban planning and development. This is attributed to the fact that a larger part of land in these cities is occupied and any public good or service provision initiative must be through either compulsory land acquisition or land aggregation approaches. In either approach there are pros and cons towards realising the well-functioning of the neighbourhood in terms accessibility, recreation, social services and other public amenities. Based on non-parametric tests of neighbourhood functionality differences across land access modalities, the survey data across wards in Dar es Salaam City, Tanzania it has been revealed that government action through compulsory acquisition of land may be justifiable in as much as the functioning of social and physical infrastructure is concerned but can limitedly be relied upon in making such facilities available in the first place. Voluntary contribution of land, open market purchase and even the voluntary contribution of cash are working better than compulsory acquisition of land for that purpose. Further evidence alludes to the fact that compulsory acquisition of land is not only detrimental to neighbourhood social networks but also can worsen neighbourhood level economic opportunities. As such alternatives to compulsory acquisition need be used in well-developed inner city neighbourhoods while some combination of compulsory or voluntary land and cash contributions are well suited in outskirt neighbourhoods.
Keywords: Compulsory land acquisition, land aggregation, neighbourhood, public services, Tanzania
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: TECHNOLOGICAL INNOVATIONS IN LAND ADMINISTRATION SYSTEM (LAS): CONCERN ON LEVEL OF AWARENESS IN NIGERIA |
– by Tosin B. Fateye, Ayodele A. Ibuoye, Babatunde M. Wahab and Victoria O. Odunfa
Abstract
The study examined the level of awareness of technological innovations in land administration among stakeholders comprising academics and officials charged with the responsibility of administering and managing land in the Federal Capital Territory, Abuja, Nigeria. The study sampled 114 land experts and employed multi-layer non-probabilistic sampling, i.e. cluster, convenience and snowballing techniques. Descriptive statistics of mean score of weighted options (5-point Likert scale), cross tabulation and Kruskal-Wallis test were deployed to analyse the data. The mean score (MS) showed a very low level of awareness of technological innovations among the respondents. The result revealed that, the respondents have a fair knowledge of Geodata Cadastral Database and Land Resource Manager. The compare mean score analysis of the level of awareness against the respondents’ background information revealed that field personnel, GIS experts, HND holders and experienced land administrators were relatively familiar with the technologies in their categories. Kruskal-Wallis was used to test if there is a significant difference in the opinions of the respondents considering variation in their background profiles. The test result showed that there is no statistical significant difference in the opinions of the land experts. The findings signalled that the operation of land administration in the country is still at a basic level, manual and labour intensive. The study therefore advocated for scaling up of sensitisation and awareness campaigns on the technological innovations, synergy between field and academic land experts, training and re-training of personnel and adoption of strong institutional framework that will enhance LAS in the country.
Keywords: Land administration, system, technologies, innovations, awareness
| Journal Volume 14, Issue 2, ISSN: 1823-8505 Date: December, 2020 |
| Title: A STUDY ON THE RELATIONSHIP BETWEEN HOSTEL INVESTMENT AND INFLATION IN AKURE, NIGERIA |
– by Akuakanwa Eziukwu Nwosu
Abstract
One of the important objectives of holding an investment is to protect investors’ real currency value invested against inflationary trend and enjoy a continuous positive flow of real return. In Nigeria, majority of investors in real estate are uncertain concerning the hedging capability and existing relationship between return in real estate and inflation rates. This research paper identifies the degree of relationship between returns in hostel investment and inflation rates in Akure, Nigeria. Environs of Federal University of Technology Akure (FUTA) were chosen as a study area because of influx of investors in hostel development in the area. Data on rental and capital income were collected from registered and practising Estate Valuation Firms in the study area through self-administered questionnaire, while rates on inflation were obtained from Central Bank and Bureau of Statistics data bank in Nigeria. 25 Estate Valuation Firms in Akure consist of the target population sourced from the NIESV (Nigerian Institution of Estate Surveyors and Valuers) Directory. Twenty-five questionnaires were administered to Estate Valuation Firms, fifteen were retrieved. The descriptive statistics include the mean return while inferential statistics used for the analysis includes Phillip Perron unit root test and Auto regressive distributed lag. The PP unit root result; shows the data sets exhibits a different combination order in terms of the integrations. Existing degree of relationship was seen to vary between hostel and inflation rates. However, instances where some hostels show a positive relationship with inflation component exist; while others show a negative relationship with the inflation components. The findings from this study will give empirical direction to both individual and institutional investors in hostels. It was recommended among others that the Nigerian government should work towards putting in place the relevant policy mix of fiscal and monetary policies to mitigate inflation rate to a single digit so that investors will be able to earn their real return.
Keywords: Nigeria, hostels, investment, returns and inflation rates, Akure
A STUDY ON THE RELATIONSHIP BETWEEN HOSTEL INVESTMENT AND INFLATION IN AKURE, NIGERIA