WHY MAGODO PHASE 2 AND 1 PROPERTY PRICES ARE NOW ALMOST AT PAR!
The difference in land prices between Magodo Shangisha and Magodo Isheri has narrowed significantly over the last few years. Our recent survey of land prices in the two Lagos State Government created estates show that while land prices in Magodo Shangisha stood at approximately N100, 000 per sqm and N60, 000 per sqm in Magodo Isheri’s with a percentage difference of 40% as at January 2016; however the difference in land prices between the two estates by January 2017 had reduced to about 20% with plots in Magodo Shangisha (Phase 2) now selling for an average of N100, 000 per sqm and that of Magodo Isheri (Phase 1) now selling for an average of N80, 000 per sqm.
Real estate analysts conversant with trends in the two estates say factors ranging from the shortage in the supply of vacant plots, rising land prices and the change in the purchasing power of buyershave led to this near merging of the two values.“The number of plots available for sale in Magodo Shangisha which is the more expensive out of the two estates has reduced considerably. This has led to a rise in land prices that has now gone beyond the purchasing power of many potential Magodo land owners”, Mr. Nnaemeka Nwaze of Nnaemeka Nweze and Co. explained.
In a similar vein, Mr. Johnson Fakeye says many of the prospective Magodo Shangisha land owners have been priced out of the market and Magodo Isheri has become a good option for them. “The conspicuousdrift of land buyers from Magodo Shangisha to Magodo Isheri because of the availability of cheaper plots of land has also now started to push prices up in Magodo Isheri. There is now a demand pressure on plots in Magodo Isheri which clearly explains why the gap in land prices between the two estates have narrowed drastically in the last few years”, Fakeye explained.
Fakeye added that the issue of distance which was a major barrier between the two estates no longer seems to exist in the minds of those willing to take the option of Magodo Isheri. “The horrendous traffic situation at the Magodo Shangisha end of the Lagos-Ibadan expressway during peak hours has gotten to almost the same level with those at the Berger Bus Stop end of the road – the entry point to Magodo Isheri. The distance between the two estates seems to have disappeared in a way; especially now that the traffic on this end of the Lagos-Ibadan expressway spreads across the entry points of the two estates”.
Nweze just like Fakeye however predicts a further reduction in the difference between land values of the estates. “There is no indication that land prices in Magodo Shangisha will drop anytime soonest, same for the drift to Magodo Isheri. What this ultimately indicates is that while land prices in Magodo Shangisha will continue to rise, land prices in Magodo Isheri will continue to rise at a pace that may soon make the price gap insignificant”, he hinted.