UCT Open Access Journals (Univ. of Cape Town)
Not a member yet
801 research outputs found
Sort by
The Challenge of Productivity in the Housing Sector of a Developing Country: The Case of Cameroon
Get PDFThis paper evaluates productivity in terms of housing delivery levels of the housing sector in Cameroon. The data used is from the Centre for Affordable Housing Finance in Africa (CAHF) and the Ministry of Housing and Urban Development. These data relate to: the number of dwellings delivered during the study period; the amount of hours of work required to produce a housing unit; the unit cost of labour; the cost of producing a housing unit; and the area used to produce a housing unit. The technique of analysis was Data Envelopment Analysis (DEA). The level of productivity is evaluated using the Malmquist index. The results revealed that between 2010 and 2018 the housing sector in Cameroon produced an average of 13,126 houses per year. This production gives an average cost per housing unit of $39,612. The study found a fall in total productivity of factors (labour and capital factors) of the order of 24.5% for the period considered. The fall observed is explained by a decrease in both technical efficiency and technological progress. To increase the productivity of the housing sector in Cameroon two types of measures are possible. Firstly, a better use of resources where particular attention is paid to the factors limiting productivity growth, namely the cost of labour, capital and materials. Secondly, use a skilled workforce and implement incentives for innovation based on the use of local materials and better operational organisation. It is argued that the incorporation of these suggestions would make it possible to increase the productive capacities of housing firms in Cameroon
Understanding the Bases and Approaches of Mortgage Valuation in Ethiopia
Get PDFIn Ethiopia there is no mortgage valuation framework or a regulatory valuation institution. Due to this, financial institutions may value mortgage securities without any clear and consistent basis; resulting in confusion among experts and parties dependent on valuations for their business. Further, there is no previous empirical evidence on how banks or financial institutions value mortgage securities. This study is therefore intended to examine the practice of mortgage valuation adopted by Ethiopian banks by looking at valuation bases and their corresponding approaches. To meet this objective the researchers adopted a qualitative research approach where primary data were collected using key informant interviews from experienced valuers at four Ethiopian banks. The collected data were analysed and interpreted using clustering and the data were categorised into relevant themes. The study found that banks undertake mortgage valuation without any valuation basis, and they consider the cost approach as the only recognised valuation approach. Moreover, property valuers do not have sufficient professional competence in valuation and have no discretion to choose the appropriate valuation approaches. Based on the findings of this research, it is suggested that banks apply market value as a basis of valuation. The market value basis is compatible with the property market context of Ethiopia and international practices. The constitution of Ethiopia also supports it. Furthermore, banks should also adopt either the income, market or cost approaches depending on the nature and type of properties. But the cost approach can be applied as a check and balance on the reasonableness of the value determined using another approach and in cases where the two approaches are inappropriate. Valuers should also be able to use their discretion in selecting valuation approaches. These can be realised by establishing an independent national institution responsible for valuation regulation and certification
Forecasting Performance of Commercial Property Investments in Lagos Metropolis
Get PDFInvestors rely on statistical forecasts to guide their investment decisions. Given the relative opportunity cost associated with these decisions, and the huge financial implication of commercial property investments, such insights are invaluable; because investors can choose investments from an informed position. Despite this recognised benefit of forecasting, there has been little focus on forecasting the performance (total returns) of commercial property investments in Lagos Metropolis. This paper, therefore, aims to forecast the total returns of two commercial property investment types (shops and offices) in five sub-markets (Yaba, Ikeja, Ikoyi, Victoria Island and Lagos Island) within the Lagos property market. In doing so, the study uses longitudinal data for the capital and rental values of commercial property investments in Lagos between 2006 to 2018 alongside a simple regression model for 2019-2021 predicted total returns. Autocorrelation was used in testing the predictive validity of this data set. Furthermore, multiple-forecasts were evaluated simultaneously for accuracy and, together, they illustrate the difficulty of compiling a robust dataset in the absence of a central database. This paper suggests that the sampled total returns for the five sub-markets fluctuate and tend to decline as seen in the Ordinary Least Square Regression technique for 2019 to 2021. The results also suggest a low autocorrelation in most of the sub-markets, which indicates that the observed pattern of returns may not continue. This paper recommends that investors be wary of commercial property investment in Lagos Metropolis, due to the observed poor performance (low and fluctuating total returns). It is also recommended that a property database be constructed to improve property data reliability and allow for the application of complex quantitative forecasting techniques
Correlation analysis between risk measurement and project success of small and medium contractors in Gauteng, South Africa
Get PDFRisk measurement (RM) and construction project success (PS) are closely related. Preceding studies highlight the importance of RM in the management of risks without revealing its effect on PS. This study aims to determine the influence of RM on the PS of small and medium enterprises (SMEs). A positivist research design was applied using a survey questionnaire circulated to 181 respondents in Gauteng, South Africa (SA). Raw data analysed using inferential statistics extracted one-component solution and evinced statistical significance (p=0.000<0.05) between RM and PS. In particular, results revealed that RM significantly influences PS of construction SMEs through delimiting the RM criteria to be adopted, establishing the level of acceptable risk and risk timeframe relevant to risk effect and risk likelihood. It is suggested that the management of SMEs and industry professionals involved in risk management should adopt RM for the management of their project risks to accomplish project objectives effectively. The study renders new empirical evidence of risk management factors that influence PS of SMEs in the context of SA. It remains to be seen whether the current finding could be replicated in other datasets. If indeed that is the case, then this article expands to the discourse and literature on RM of SMEs. However, the current findings cannot be generalised due to the restrictions pertaining to the geographical area and respondents.
Keywords: Contractors, Correlation analysis, Factor analysis, Project success, Risk measurement
Nurturing next-generation biomedical engineers in Africa: The impact of Innovators’ Summer Schools
Get PDFThe mission of healthcare systems in Africa to deliver compassionate and effective care has been constrained by growing populations, increasing burden of disease, political conflict and limited resources. The impacts of these constraints can be substantially alleviated, and the healthcare services strengthened, through the creation and adoption of affordable, accessible and appropriate biomedical engineering systems and technologies. There is an urgent need for building capacities in biomedical engineering, innovation and entrepreneurship in African countries. The African Biomedical Engineering Consortium has been organising a series of Innovators’ Summer Schools to meet this need by empowering students and researchers with entrepreneurial and innovative skills, and facilitating the design and development of robust, appropriate, and commercially viable medical systems and devices. In this paper, we analyse and discuss the impact of six of these schools held between 2012 and 2017. We used a questionnaire-based survey to collect responses from students who had attended the summer schools. The results of this study demonstrate that the teaching-learning model adopted in the ABEC summer schools was largely effective in promoting biomedical engineering skills, career choices, professional networks and partnerships amongst young African engineers and life scientists who attended the summer schools
The Urban Land Nexus– Challenges and Opportunities of Regularising Informal Settlements: The Case Studies of Dar es Salaam and Mwanza in Tanzania
Get PDFInformal settlements in Tanzania accommodate more than 70% of the urban population. Owing to this, the Tanzanian government has undertaken several initiatives to address the growing size and number of informal settlements. One such initiative is regularisation which addresses security of tenure for residents of these settlements. Most of the people living in informal settlements lack legal land ownership and as a result properties in such settlements have relatively less value and lack security of tenure. Providing security of tenure is believed to encourage investment into informal households and facilitate the provision of urban services. This study aims to evaluate the process of regularisation in three Tanzanian settlements; Magengenu in Dar es Salaam (Tanzania’s largest city), Ibungilo and Isamilo in Mwanza city (the nation’s second largest city). Using qualitative data the paper explores the challenges and opportunities that emerged from regularisation. Findings indicate that the regularisation process has facilitated the issuance of title deeds, increased land value and security of tenure. However, a number of challenges were highlighted during regularisation. These include an over-emphasis on the protection of private rights while undermining public interests, a lack of harmonised cost for regularisation, and prolonged delays in completing the regularisation process. These require policy actions, particularly reviewing the national informal settlements regularisation guidelines, as a way to address the weaknesses emerging from regularisation projects in the studied settlements. We conclude that land regularisation remains an important tool to enhance livable cities and protect long-term public and private interests in land development. In order to achieve this, supportive policy actions are required to support the protection of public interests in land regularisation and harmonise the costs of regularisation
Characterising Real Estate Value as Co-determinant of Housing Choice Optimality in Nigeria
Get PDFNigeria remains classified as a lower middle-income nation. Among middle-income households (MIHs), there exists an idea that real estate value is central to housing well-being, but the significance of the anecdote has not been empirically established.The principal aim of this study is to characterise real estate value (REV) as a co-determinant of optimality, the adopted proxy for housing well-being, through regression modelling of selected MIHs in Abuja and Minna, Nigeria. This study examined the impact of REV as well as the effects of four other pertinent variables (household income, commuting cost, workplace distance and household activity pattern) on housing choice optimality in Nigeria. Using primary and secondary data from purposively selected MIHs in Abuja and Minna, the study employed multiple regression to explore the relationships among the variables. The results show that the housing optimality model has a reasonable predictive explanation of approximately 57% - 77% for the explanatory variables. The study's findings also reveal that household income, real estate value and activity patterns have significant effects on housing choice optimality, albeit with varying magnitudes across the two cities. It is worth noting that the t-statistic ranges between -5.20(Abuja) and -2.12(Minna), thus implying that REV impacts optimality negatively and that REV is a burden which households must bear in order to secure the right to an apartment of their choices. The study concludes that given the real estate value, the consequential housing choice optimality could be predicted across different housing markets in Nigeria as a decision-support guide for rental seekers. Furthermore, given the consistency of these results with earlier studies, this work provides greater knowledge on the lifecycle of housing choices and realities in Nigeria. By adapting and extending the optimality idea to real estate, this study has made an important contribution to the discourse of optimal rental housing.
 
Editorial
Get PDFWelcome to the first issue of the fourth volume of the Journal of African Real Estate Research (JARER). This is our first publication for 2019 and my first as Editor-in-Chief. Since its relaunch, the JARER has offered opportunities for academic and professional researchers across Africa to disseminate their scholarly work in the real estate sector. There has been an increasing rate of submissions and our appreciation goes to the board members of the African Real Estate Society, the Library services at the University of Cape Town, and the Journal Manager, Luke Boyle from the Urban Real Estate Research, who has been working tirelessly in managing the journal’s operations. The JARER continues to be strongly supported by IRES, ERES, and Prof. Karl-Werner Schulte from the IREBS at Regensburg University. Without this support the journal would not be financially sustainable. We also thank the many authors for publishing in the journal, and ofcourse our reviewers and editorial board who have given generously their time to review the papers
