Factors Influencing Johannesburg
Date
2011-06-23
Authors
van de Sande, Panayoty
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Abstract
The inner city of Johannesburg has recently gone through a period of renewal;
it was just a decade ago that Johannesburg was described as “The City of
Filth” (City Press, 1997; Pg: 4), owing to increased crime, decreased
confidence, and fleeing tenants and landlords, which led to the “decrease in
inner city residential property prices and in many cases negative equity from
which many landlords just walked away” (City Press, 1997; Pg: 7). Today
“crime rates are down, occupancy rates are up, investment is increasing as
confidence improves and cleanliness has returned” (Turner & Townsend, 2005;
Pg: 1). The Johannesburg inner city rejuvenation has attracted investors, some
of whom have been successful and others not.
This research identified the many factors that affect Johannesburg’s inner city
residential property values and grouped the identified factors into the
categories: “High Level Factors”, “Low Level Factors” and “Individual Factors”.
Participants were then identified from three distinct groups: “Successful
Investors”, “Unsuccessful Investors” and “Service Providers” to those investors.
Participants were asked to rate the significance of each factor and category.
The research outcomes were as follows: Successful Investors and Service
Providers to the investors had similar views and ranked the Individual Factors
as being most significant, followed by Low Level Factors and then High Level
Factors. These results indicated that Successful Investors took responsibility
for their investments, and displayed an internal locus of control, which ensured
that they succeeded. Unsuccessful Investors rated High Level Factors which
were outside of their control and had an external locus of control as playing a
significant role in the demise of their investments while the Low Level Factors
and Individual Factors were seen as not having a significant impact on the
value of inner city residential property values.
What was evident from all participants was that at some time they had all felt
that residential property within the inner city of Johannesburg was a good
investment and that this investment would give them positive returns.
Description
MBA - WBS
Keywords
Residential property values