CHAPTER 1

         INTRODUCTION

1.1 Background of The Study

 Oni (2007), citing Goldberg (1970), opines that property and land values tend to increase in areas with expanding transportation networks, and increase less rapidly in areas without such improvements. Rapid and continued rise in housing ssssand land prices are expected in cities with transportation improvements and rapid economic and population growth. Road is any nation greatest investment where every citizen is a shareholder (Readop Series II 2007). However, the burden of road construction, road caring or management is seen as the sole responsibility of the government Knaap (1998), observes that property’s location and value are strongly interrelated. Urban transport systems influence property features. Accessibility is a key aspect of location.  Physical accessibility is determined by the time and cost of travel to other locations. It depends on the presence, efficiency and effectiveness of transport modes. Investment in new transport infrastructure will alter location’s relative accessibility, inducing both localised and more general changes in land values. Substantial value changes will trigger property investment and development decisions, resulting in the intensification or change in land use. Therefore, property market acts as the conduit through which the economic and social impact of changes in accessibility is transmitted to the environment.

Aderamo (2003), opines that road network constitutes an important element in urban development as roads provide accessibility to the different land uses in the urban area. Thus, the proper functioning of an urban area depends on an efficient transportation network. General accessibility largely depends on transport facilities. Oni (2007), citing Said and Shah (2006), listed transportation modes to include human porterage, railways, ropeways and cableways, pipelines, inland waterways, sea, air and road.

Areola , Mamman , Onweluzo and Omotosho (1999), cited in Ladan (2007), describe road transportation as a form of land transport which involves the movement of people and goods by motor cars, trucks, buses, motorcycles and bicycles. Furthermore, they refer to road transportation as the most popular means of transport.

Ileoje (2004), also cited in Ladan (2007), categorises roads based on their quality. The quality is determined by the width, type of surface, number of lanes, facilities available etc. The road categories include the high quality Trunk ‘A’ roads, some dual carriage, owned and maintained by the Federal Government and linking the states and the federal capital. There are also, all season, generally tarred Trunk ‘B’ roads owned and maintained by the state government, linking local governments with state capitals. There are generally untarred seasonal Trunk ‘C’ roads owned and maintained by local governments. These roads connect the communities with the local government headquarters.

Oni (2007), categorises roads as international, inter city and intra city. Tse and Love (2000), observe that while transportion systems clearly enhance neighborhood accessibility, they negatively affect estate values. This is manifested in the production of noise, pollution, crime, and, in the case of properties located directly in their path via stigma. These factors, both positive and negative, capitalised into the values of homes in the same way that extra bathrooms, swimming pools and/or desirable locations do.

Road is any country greatest investment where every citizen is a shareholder according to Sims (2002). However, the burden of road construction, road caring or management is regarded as government responsibility. Road transport is many nations or cities driver of the economy and is the most popular means of transport in Rivers State. Oni (2007) identifies factors that affect property values as intrinsic or extrinsic. Adebayo (2006) opines that property values tend to peak in areas that enjoy easy accessibility (through road network), electricity, pipe-borne water among others. Gerrit (1998) is of the view that the impact of an improved road network on property value depends on demographic segmentation of the neighbourhood. It is against this background

this research work will assess the effect of road construction on residential property value in Rivers State and Bori in particular.

1.2   Statement of Problem

The relationship between road and urban residential property values has been the focus of many studies (for example, Dewees, 1976; Damm et al, 1980; Wolf, 1992; Singh, 2005). Some of the earlier studies returned positive relationship between transport and property values while others showed negative relationship.

A number of factors affect values of properties. These factors may be intrinsic or extrinsic. The extrinsic factors include increase in demand for lettable space, location, condition of adjoining properties, nearness to park and leisure, local and national economic conditions. External factors are due to natural characteristics of the property which affect the city where the property is located. Intrinsic factors arise from within the nature of the property itself and relate to the physical attributes, including size of room, state of repair, decoration, and facilities. Other attributes that increase or decrease the amount that users are willing and able to pay in an open market transaction include physical characteristics of the structure, change in taste and demand, effect of adjacent activities, economic activities, inflation, and changes in legislation. The demand for commercial properties itself is affected by changes in population, planning and development schemes, legislation, and availability of good road networks (Hendon, 1971; William, Davies, and Johnson, 1980; Richmond, 1982; Millington, 1982; Olayiwola, Adeleye and Oduwaye, 2006).

Earlier theorists (Burgess, 1925; Hoyt, 1939; Harris and Ullman, 1951; Lean and Goodall, 1977) generally believe that sites adjacent to main transport routes have relative advantages over those located some distance away, and other sites located at route intersections possess relative advantage with greater advantages belonging to sites located at focus of transport system. These advantages are determined in relation to accessibility, which has different characteristics in relation to individual sites thus differentiating between sites in terms of accessibility advantages.

Many of the aforementioned studies emphasized the effects of the factors on values of properties generally with little consideration given to road consruction and its effects on values of residential properties. Possible relationships between road networks, location attribute, demand and supply, and accessibility and residential property values have therefore elicited the interest of the researcher in this direction.

The use of roads leads to a study of urban areas in relation to land values, especially

residential properties. It is against this background that this study was conceived.

1.3      Aim and Objectives

The aim of this research is to analyze the effect of road construction on residential property value, while the specific objectives are to:

a)       Analyze the arterial road construction  in the study area;

b)      Examine the effect of road construction and values  of residential properties in the study area;

c)       Determine the relationships between residential property values and road construction, in the study area;

d)      Determine the factors affecting residential property values in the study area.

1.4      Research Questions

Some pertinent questions to enable the study attain its stated objectives are as follows:

1.       What is the pattern of arterial road construction in Bori?

2.       What are the effect of road construction on residential property values in the study area?

3.       What are the relationships between residential property values and arterial road construction in the study area?

4.       What are the factors affecting residential property values?

1.5        Scope of the Study

Roads may be classified as international, inter-city or intra-city. International and inter-city roads are usually major or arterial roads, while intra-city roads are routes within a city and may be minor or major (arterial). The study focused on arterial roads in the intra-urban network of Bori.

This study therefore covered all major roads serving the residential axis and inner areas of Bori to the exclusion of inter-city roads such as sakpenwa road, hospital road and zaakpon road form rings around the study area.

Preliminary study revealed that there are several types of residential properties in the study area. These are tenement buildings, self en-suit, bungalows, duplexes, blocks of flats etc. In respect of this research, focus was on tenement, blocks of flats, self en-suit, and other types of residential users along the arterial routes.

Due to the magnitude, terrain and complex nature of Rivers State State roads, the study was limited to Bori intra-city roads.

 Road network analysis was carried out to determine the levels of accessibility and connectivity of nodal points as well as road and traffic densities in the hope of predicting residential property values along each arterial road. In doing so, only thearterial roads identified as residential axes in the study area were the focus of theresearch, while the relationship between arterial roads construction and rersidential properties in the study area were examined.

1.6 Significance of the Study

The study will be useful to property developers, property owners, particularly to government parastatals, because the researcher will evaluate the effect of road construction on residential property value to promote healthy living. This will ensure that, the quality of life of people will improve and adequate measures are given to charter for the increasing population. Furthermore, it is to also ensure that the level of residential property value  in the study will improve with the right mix of access road.

It is believed that findings of this  researchers work would be useful, not only to the researcher but render further researches and as well serve as a guide to professionals in the built environment, the government and the private developers/property owners.

1.7     The Study Area

Bori is the traditional headquarters of the Ogoni people measuring 20 square miles (50 km2) with a population of 11,693 in  the 2006 general census. Bori serves as a commercial centre for the Ogoni, Andoni, Opobo Annang and other ethnic nationalities of the Niger Delta Benue Congo. Bori is the host of the Ken Saro Wiwa Polytechnic Bori.

The Bori Urban Area has many adjoined communities including Bori Town, Bua Kaani, Yeghe, Zaakpon, Wiiyaakara, Betem 3, Kor, Kpong, and Bo-Ue. The Kaani people built and donated the first community secondary school in Nigeria to the Government of the Old Rivers State of Nigeria.

Bori is the second largest city in Rivers state after Port Harcourt and the commercial center of the Rivers southeast senatorial district in Rivers state.

Bori is an Agricultural hop in Rivers state involve in the production of Yams, Gari, corn, cocoyam, palm oil and vegetables. Also available are fishes and meat. The Bori main market is a daily market where these products can be bought in large quantities for local or export market.Source: Hamilton Janice (2003 )

Source: African Research Corps (2016)

 1.8   Limitations to the Study

A study of this nature being carried out in the present socio-economic and political condition is bound to face a number of limitations. Thus, in the course of carrying out this research work, limitations encountered by the researcher include:

i.        Time constraint: the researcher was simultaneously engage in this study with other academic work, this consequently cut down on the time devoted to the study.

ii.       Financial constraint: insufficient fund was one of the key contributor to the inefficiency of the researcher in sourcing for the relevant materialsand information.

Despite the shortcomings, this research finding remains valid.

1.9     Definition of Operational Terms

In carrying out this research work some terminologies have been defined to aid better understanding of the research work.

I.       Road:  A road is a thoroughfare, route, or way on land between two places that has been paved or otherwise improved to allow travel by foot or some form of conveyance, including a motor vehicle , cart, bicycle, or horse.

II.      Residential property: Residential property is a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for use as a dwelling; land that forms part of a garden or grounds of a building suitable for use as a dwelling. This includes any buildings or structures on such land

III.     Property Value: Property value refers to the worth of a piece of real esta te based on the price that a buyer and seller agree upon. … In other words, the value of aproperty at any given time is determined by what the market will bear.