Review of the impact of obsolescence on residential property values
Sunday Emmanuel Olajide, Christopher Olutade Ijagbemi
A cursory examination of recent studies shows that the place of obsolescence is not well defined while considering the determinants of residential property values notwithstanding its lethal effect on real properties generally and residential property values in particular. Hence, the aim of this study is to review relevant literature on the impact of obsolescence on residential property values. The study makes use of secondary data by reviewing previous studies centering on the concept of obsolescence, residential property values and the relationship that exists between them. High impact journals and other relevant publications were reviewed accordingly. Enquiries into previous studies show that not enough attention is given to the consideration of obsolescence as an attribute of residential property value determinant. However, there are studies dwelling on causes of economic obsolescence and their impacts on housing values like effect of landfill, sewage system, industrial plants, dump sites and the likes on property values. It is hereby recommended that researchers especially in real estate should embark on more meaningful studies on the effects of obsolescence, as a conceptual attribute, on residential property values. This study is meant to serve as awakening call to valuers to take adequate cognizance of the impact of obsolescence on their valuation assignments.