Developers slash prices as Lagos sees jumbo sales in property market in December

FOR REAL TORS AND PROPERTY development companies, December 2018 is a not-to-be forgotten month for the steep rise in their fortunes and sales. Those of them hitherto carrying heavy inventory of unsold properties have cause to laugh as property acquisition by Lagosians reached an unprecedented level since the last one year.

The realtors’ strategy was a promo-like slash in the prices of property. After a long period of business lull, it was the thing to do to lift their depressed souls. And then the floodgate of home buyers opened.

Given the parlous state of the economy and the harsh business environment under which businesses operate, many prospective home owners have either had their income sources reduced or not generating income at all. This state provided the backdrop for the price slash which now appears to be a masterstroke for unlocking and bringing back to life the property business. Even property brokers were not overtly greedy but willing to make marginal profit before 2018 comes to an end.

Property investment organisations such as Adron Homes, Aina Gold Estate, Berry Court Estate, AMEN Estate, among others, are giving property discount ranging from 25-50 percent, to customers on outright purchase. This December discount, which has been a regular strategy over the years, seems to have a better discount percentage, compared to previous years.

The discount was also extended to land sales in the state. A plot of land on the island (Ibeju Lekki), which normally sold for N2 million, is currently being offered for N1 million. This trend also plays out on the mainland. A plot of land at the outskirt of Lagos (Ikorodu), which is regularly sold for N1.2 million, is currently being offered at N550,000.

Completed structures, however, command relatively lower discount rates as property brokers insist on getting value on such financially demanding assets.

Current prices of completed structures range from N5 million, for a 3-bedroom flat and much more, based on the building structure. Location of the building structure also increases the price value.

The huge difference in price value of land, as compared to completed structures, has led to a lot of buildings remaining unoccupied. Property investment brokers are unyielding to customers’ desire for a discount in this respect.

This period of price discount in the property market is bringing to light the federal government of Nigeria’s desire for housing for all. Property investment is a valuable acquisition for all, and for future generations.