Developers review property prices downwards
Yinka Kolawole
Developers have been reviewing downwards the prices of their properties on offer, a reflection of the gloom in the property market occasioned by the paucity of funds in the economy resulting from the unwillingness of the banks to grant credits.
The developers of a private estate in Isheri North being financed by Union Homes Savings and Loans Plc recently announced a substantial reduction in the prices of properties on offer for sale at the estate. A terrace house previously priced at N23.96 million was reduced to N19.17 million; while a detached house that was going for N40.29 million was reviewed downwards to N32.23 million and; a semi-detached house was priced down from N35.86 million to N28.69 million.
Another property firm, Afribank Estates Company Limited, has also opted for a price cut for subscribers of the remaining units in its schemes located at Magodo GRA, Shangisha, and other units located at Emmanuel Keshi and Bashiru Shittu Streets.
The prices of the properties were reduced from N95 million per unit to N85 million, according to a top officer of the firm, after shopping for potential buyers without avail for sometime.
The prime properties are residential units of 300 square metres floor area per unit, comprising five bedroom-detached houses with two maids’ rooms. Amenities provided include Jacuzzi, steam bath, electric fence, top quality sanitary wares, cable TV, enthralling landscaping, standby soundproof generator among others.
Further investigations also reveal that price of properties, mostly in the high end of Lagos property market, such as Ikoyi, Victoria Island and Lekki, have had their valuation reduced by about 10 percent, in some cases more, in recent time.
An estate agent who spoke with Vanguard revealed that some three-bedroom bungalows along the Lagos end of the Lagos Ibadan expressway which was selling for about N15 million some months ago, now goes for about N13 million.
Some property developers are however certain that the hiccups presently being suffered in the property market as a carry-over of the crisis in the banking sector in 2009 will soon be over.
It is however interesting to note that rent for residential houses has continued to sky-rocket in may parts of Lagos, a development which observers have attributed to the simple economic principle of demand and supply, not forgetting the property agents who take advantage of the development to demand outrageous fees. But property experts insisted that the price movements are driven by market forces of demand and supply.
