How Do Crime Rates Affect Property Prices?

Cigdem-Bayram, Melek; Prentice, David

doi:10.1111/1475-4932.12455

Cited by 6 publications

(7 citation statements)

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“…Based on 28 provinces in China Song et al (2019) discovered a positive correlation between housing prices and criminal activities, and due to crimes housing prices varied from one region to another region in the country. The study by Cigdem-Bayram and Prentice (2019) in two Australian cities of Melbourne and Victoria revealed that there is inverse association between crime and housing prices in regional Victoria but with no effects in Melbourne. Li et al (2021) reported the heightened security problem in China and its impacts on home prices in Beijing.…”

Section: Review Of Empirical Studiesmentioning

confidence: 99%

“…Second, some studies have also shown that residents' perception of crime risk in a neighborhood actually has negative effects on housing properties (Olajide, 2008; Buonanno et al ., 2012; Ceccato and Wilhelmsson, 2011; Cigdem-Bayram and Prentice, 2019; Song et al ., 2019). In Ibadan Nigeria Olajide (2008) found that there was a negative correlation between housing values and crime intensity.…”

Section: Review Of Empirical Studiesmentioning

confidence: 99%

“…, 2018; Tillyer and Walter, 2018; Song et al. , 2019; Cigdem-Bayram and Prentice, 2019). Urban insecurity issues including crimes, violence and assaults are neighborhood-location specific problems that may have adverse effects on urban residents and housing prices.…”

Section: Introductionmentioning

confidence: 99%

“…Urban insecurity issues including crimes, violence and assaults are neighborhood-location specific problems that may have adverse effects on urban residents and housing prices. While some of the neighborhood specific factors such as proximity to transport routes, shopping malls, children schools may have positive effects on property values many of the neighborhood specific factors such as flood risk, insecurity, violence or crime constitute negative externalities that adversely affect prices of real estate (Huth, 1981;Ceccato and Wilhelmsson, 2011;Buonanno et al, 2012;Naghibi et al, 2015;Hsu et al, 2016;Mcllhatton et al, 2016;Bako et al, 2018;Tillyer and Walter, 2018;Beltran et al, 2019;Song et al, 2019;Cigdem-Bayram and Prentice, 2019;Senick, 2019;Wong et al, 2019;Bamiteko and Adebiyi, 2020;Payne and Daryol, 2020;Li et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…, 2018; Tillyer and Walter, 2018; Beltran et al ., 2019; Song et al. , 2019; Cigdem-Bayram and Prentice, 2019; Senick, 2019; Wong et al. , 2019; Bamiteko and Adebiyi, 2020; Payne and Daryol, 2020; Li et al.…”

Section: Introductionmentioning

confidence: 99%

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Urban property markets and security risk: explaining how neighborhood security shapes housing rental prices in Ojo Lagos, Nigeria

Aliu

2023

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PurposeWhile the declining rate of urban security and its potential effects have been globally acknowledged, the ways urban neighborhood security shapes real estate markets in African cities remain largely unexplained. The purpose of this paper therefore is to present the findings from a study of the nexus between urban neighborhood security and home rental prices in Lagos, Nigeria.Design/methodology/approachThis paper is based on the hedonic price theory, an objectively derived urban neighborhood security index (UNSI) and property rental price data in Ojo, Lagos, Nigeria. This is a quantitative cross-sectional study that employs multistage sampling survey procedure. Data are analyzed using descriptive statistics, nonparametric correlation and hedonic price function with ordinary least squares (OLS).FindingsResults show that nearly 50% of the study area is prone to insecurity and average rental values in Ojo, Lagos range from N151329.41 ($302.66) to N167333.33 ($334.67) per annum. Correlation analysis shows that home rental prices have high, positive and significant correlations (rs = 0.725 and p < 0) with UNSI. After controlling for neighborhood and structural factors, it is found that urban neighborhood security positively influences home rental values as a unit improvement in security leads to N81000.00 ($162.00) increase in rental value per annum.Practical implicationsUrban neighborhood security risk threatens residential property values, creates unintended residential mobility and destabilizes families. Findings from this study point to the facts that security is a key component of urban housing values and developers, and real estate investors must ensure that this component is well factored into property design, construction and valuation.Originality/valueThis is perhaps the first study that uses an objectively derived UNSI to study home rental price dynamics in Nigeria. The study extends knowledge on urban housing price determinants and contributes to literature on the crucial place of security in property management.

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Section: Review Of Empirical Studiesmentioning

confidence: 99%