Influence of Location on Unsold New Houses by Members of Kenya Property Developers’ Association in Nairobi County
Keywords:
Kenya Property Developers Association, Location, Real estate inventories, Unsold new houseAbstract
This study investigated the influence of location on unsold new houses held by members of the Kenya Property Developers Association (KPDA). Positivism philosophy and descriptive correlational research design were adopted in this study. The study population consisted of 4,085 unsold new houses held by members of KPDA. A sample size of 364 units was drawn using a multistage random sampling technique. The units of observation in this study were the property managers, where a self-administered questionnaire was used to collect data. Analysis of the collected data was done through descriptive statistics that comprised relative frequency distributions, means, and standard deviations. The study also applied inferential statistics, which included ordinal logistic regression and one-way ANOVA. The study findings from the generalized ordinal logistic regression revealed that the location of the unsold new house explains 13.9% of the duration that the house remained unsold (r2 = .139). The results further showed that the distance of the unsold new houses to the nearest markets or shopping mall (β = 0.534, P < 0.05), distance to the nearest bus station (β = 0.507, P < 0.05), and distance to the Nairobi central business district (CBD) (β = 0.219, P < 0.05) were significant predictors of the duration that the house remained unsold. Thus, the study concluded that the location of the unsold new house significantly influences the duration the house remained unsold. Therefore, the study recommends that property developers should develop houses that are close to the Nairobi CBD, shopping malls/markets, and bus stations.
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