Establishing the contributions of individual explanatory variables to property values in Anambra state: A case study of Onitsha
One can argue that in the property market, the individual contribution of land and building variables to the overall property value is very uncertain. These explanatory variables which are the attributes that one might think are important in the relevant market go a long way to defining the value of a property. It therefore becomes imperative to establish the contributions of explanatory variables to property value to ensure that future valuations of property for all purposes incorporate the significance of the variables in arriving at values. The land value, building value and property value were generated in excel sheet and some qualitative data (e.g nature of building, floor finishing, etc) were turned into quantitative data and Stata SE9 was employed to develop a property value model. This helped to explain the importance and significance of the variables that affect property value and to emphasize the relationship between land value and property value, hence the need for land value to be taxed. All lands and building variables, except age of building have positive coefficients. At 0.05 level of significance four out of ten building variables and two out of three land variables were significant in the model. The study showed that land value variables are very significant; hence they contribute a great deal to the overall property value.