THE INFLUENCE OF ENCLOSURE ON PROPERTY PRICES

Abstract

A question asked currently in Gauteng is whether residents should be allowed to boom public residential areas or not and what the effect of such booming might have on property prices. Sample data were sourced from estate agents in Lynnwood and Eldoraigne Ext 3 (Pretoria). The data contained the selling price, date of sale and various house characteristics and was analysed using regression analysis. The finding was that houses inside boomed areas have a higher selling price than houses with similar characteristics outside the boomed areas. The analysis of the sample data reflects that the average house price increased by approximately a third within the pilot area. This research confirms the speculation that houses within boomed areas have a higher market value than those outside boomed areas.