Considerations for the design and management of property database in opaque markets

Abstract

PurposeEarlier studies have suggested the creation of a central database of concluded property transactions as a panacea to the property data debacle. It is in this regard that the purpose of this paper is to examine the perception of potential users of centralised property database on the consideration for the design and management of such database.Design/methodology/approachQuestionnaires were administered on 190 property practitioners (referred as estate surveying and valuation firms) in Lagos property market. Frequency index, frequency distribution and percentage were employed for data analysis.FindingsThe result showed that respondents preferred a web-based databank and free access to the information in the databank by those who recorded their market data in it. They also preferred uniform recording standard in the databank, an interface that must be user friendly and secure to prevent unauthorised user from gaining access, amongst others. The practitioners also preferred that their professional body manage the databank when it is created.Practical implicationsThe paper provides useful insights into creating a property database that will improve accessibility to property data in opaque markets.Originality/valueThere is still little or no empirical research on framework/end-users’ requirements for the creation of property transaction database in emerging property markets.

A Review of the Property Data Challenge in Nigeria

“…Thus, no attention has been given to the efficient accumulation of data in a market whose "low transparency" categorisation connotes inefficiency. Olapade et al (2019) are the exception, but do not go into much detail. In addition to these identified gaps in literature, other issues which are important to an all-embracing property data collation system which need to be addressed are as follows:…”

“…Informality is not associated with record-keeping whilst immaturity implies a lack of organisation. Under these subsisting conditions, there is no systematic collation of transaction evidence from the property market and this affects data adequacy and accessibility (Olapade et al, 2019). The situation in Nigeria is worsened because most transactions do not pass through valuers mainly because they are not adequate for the volume of transactions and this creates an opportunity for intrusion by non-professionals (Oloyede, 2011).…”

“…One of these deficiencies is a dearth of data. At the core of this challenge is the absence of an efficient institutional framework and workable arrangement for the systematic collection and dissemination of property data (Bamigbola, 2018;Olapade et al, 2019). The suggestion is that the Nigerian system is comparatively inchoate and in need of organisation, re-organisation and standardisation.…”

“…Despite the inevitable resort to data sharing, valuers' access to this data option depends on certain factors, the most important being confidentiality (Olapade & Olaleye, 2019). Given that data is a sought after resource, firms may be unwilling to share it and potentially lose their competitive advantage.…”

“…Given that data is a sought after resource, firms may be unwilling to share it and potentially lose their competitive advantage. The next two most important factors which limit accessibility are the lack of cooperation (a reluctance to share), followed by the accuracy level of the data (Olapade & Olaleye, 2019). This suggests a further limitation to data sharing.…”