Expert Opinions on Residential Property Selling Prices and Rentals in Kimberley, South Africa

Valuation of residential property is determined by multiple, complex, and often contradictory variables, lacking an all-inclusive framework. Many stakeholders in the heterogeneous real estate markets use various variables deemed relevant in a pricing situation. This study sought to determine factors which affect the sale and rental prices of residential properties in a South African mining town, to provide key elements of a pricing framework that could be used by various stakeholders. Quantitative data was collected from Estate agents, Property owners, Landlords and Property valuers using a questionnaire survey. Descriptive statistics and systematic significance were analyzed using regression analysis. The study found that the main determinants of the pricing model were construction costs, structural characteristics, locational factors and financial market variables. However, not all variables within these determinants had a statistically significant contribution to the pricing mechanism. The study concluded that a practical framework should be based on financial variables, locational factors, costs involved in the construction of the property and its structural characteristics. It recommends that the influence of professional property bodies on the sale and rental prices should be examined further as it could guide the improvement and achievement of consistency in the determination of residential property prices.