THE PROPERTY MARKET-PECULIARITIES SUB MARKETS AND ITS ROLE TO THE ECONOMY

Two words are put under consideration, which are property and market
MARKET: is said to be a mechanism in which goods and services are voluntarily exchange among different owners, or a place with a geographical dimension where tangible and intangible goods are traded between buyers and sellers to meet their immediate and future needs. On the other hand, a market is an environment or situation where buyers and sellers exchange goods and services, in other words market can be define as an open place or cover buildings where buyer and sellers convene for the sale of goods.
TYPES OF MARKET
Labour market
Stock market
Foreign exchange market
Property market
LABOUR MARKET: Is a place where workers interact with one another.
STOCK MARKET: Is the aggregation of buyers and sellers loose network of economic transactions, not a physical facility or discrete entity.
FOREIGN EXCHANGE MARKET: Is a physical and institutional through which the money of one country is exchange for that of another country.
PROPERTY: Can be defined as a unique asset and a factor of production. In other word property can be define as something of value either tangible such as land or intangible such as patents. The word property is uncountable and as such is not describe with an indefinite article or as plural. Depending on nature of property, an owner of property has the right to consume, alter, share, redefine, rent, mortgage, pawn, sale, exchange, transfer, giveaway as well as to destroy it.
Property in law can be define as the highest right a man can have to anything, being that right which one has to land or tenants, goods or chattels which those not depend on another courtesy. In valuation, it can also be define as corporeal and incorporeal things capable of pecuniary and legal assertion, over which ownership gives control. Property is a legal concept that encompassing all interest, right and benefits related to its ownership. Property can also consist of the rights of ownership, which entitle the owner to a specific interest or interest in that as a physical entity and its ownership; which is a legal concept, the ownership of a real estate is called real property.

NATURE OF PROPERTY MARKET
Unique physical characteristics and location
Fragmented market
Imperfect information
Real estate professionals
UNIQUE PHYSICAL CHARACTERISTICS: No two properties are the same. Hence, to establish price each property must be valued on its own merit. That is to say each property is unique in physical characteristic and location.
MARKET FRAGMENTATION: Real property market has no central market, place where trade takes place, due to it inefficiency in information flow.
IMPERFECT INFORMATION: There is a weak form of efficiency, that is there are serious information problem, this increases the cost risk of transaction in real property market, that is participant have to make substantial search cost to obtain the information necessary to make the market transaction.
ENTRY OF REAL ESTATE PROFESSIONALS: This situation has influence the organizational structure of the market, that is this has created a role for professional real estate service providers (ESV) in reducing the risks and cost associated with the market.
PROPERTY MARKET
A market is said to be a place with a geographical dimension, the same cannot be said of a property market. A real property market otherwise known as a real estate market is define as any medium where bundle or cluster of right is been exchange. It could also be a system of transaction between landowners, land users and estate Agents. The property market is the sum total of all the smaller and lager market operating in different types of interest in land and buildings. This implies separate market exist for every type of property that involves different groups of buyers and sellers. In other words, property market is a medium through which ownership rights and privileges are transferred from one person to another.
However, property market can judiciously be classified principally according to location and users.
LOCATION: It is a very important factor in real estate market as it dictate pattern of values. Because of its fixed nature, a property may be design or accident of ownership located in a particular user zone such as residential, commercial, industrial, etc. location represent a unique factor in each estate because it is unchangeable whereas most others features can be altered by investment and improvement.
A property that has a wide comparable location advantage will command a wider market as it value will be more readily determined and as such be much more easily dispensable.
USER: In our environment, properties are best appreciated by type of use and consequently, the market is clearly defined along this line. The property market can be categorized as residential, commercial, industrial, agricultural and special etc.
Residential Market: this is probably the most common property market in Nigeria; it is also the most important and most active especially in urban areas. The reason for this is not farfetched, because of our developing economy; the demand for housing is ever on the increase because of rural urban drift and demographic problems. Housing supply is usually shot of demand at any giving time and the problem has remained perennial. The residential market is further subdivided according to types namely, tenement apartment, flat, semidetached and detached houses.
Commercial Property Market: Developments such as offices and shops fall into this category. There is a high demand for offices especially in central business districts of urban centers in Nigeria such as Lagos, Port-Harcourt, Kano and Kaduna and in the new state capitals such as Asaba, Umuahia, Lokoja, Jalingo etc. propose built offices mainly exist in the market and rental basis and occasionally change hands, by way of sale. Offices for rent are price in the market as a unit of usable flow space area e.g. N1000/M2. Shops are generally available at all occasions and neighborhood but they attract values in the town centers and main business district, individuals, corporate bodies and local government mostly on the shop and this rarely exchange hands on outright sales but on rental basis. The small unit shops are price by way of premium, while the larger shops are by flow area. The prices often compare favorably with those of offices within a given locality.
Industrial Property Market: This is a highly restrictive market as industrial premises are principally developed on owner occupier basis. However, warehouse developments attract a wider market and most industrial premises are developing along this line now days. This makes alternative use possible when plant and machinery which dictated the specialize nature of a particular industry are removed. Pricing of this class of property is on usable flow area praises.
Agriculture Property Market: Majorly, the property needed is land which is virtually indestructible and in fixed supply. Yields on agricultural investment are traditionally lower than on other types of property. The following factors are among the reasons for this:
The investment comprises land and buildings but the major part is land which is virtually indestructible and in fixed supply.
The product of land and food, a basic need of man
There are some rating and taxation concessions.
The government supports the agricultural industry and may be relied upon to continue to do so.
Ownership of a rural estate often confers social advantages and provides opportunities for sports and recreation.
There may be development opportunities.
Rent may be revealed frequently every three years.
Special Property market: It includes cinemas, photos, petrol stations, public houses and others. Such properties often have a quasi-monopolist element. In the case of cinemas for example, there may be only one or in the case of petrol stations, its position is of such important that two such properties may be close together, but one may be less conspicuous from the high way than the other may such that the earning potential of the two properties are totally different. This type of properties presents two difficulties. One is of valuation and the other relate to assessing it merit in an investment.
CHARACTERISTICS OF PROPERTY
IMMOBILITY: landed properties are immobile, that is to say, they cannot be moved, as such, it makes lenders confortable, and as a result, they can offer long-term loans. In addition, it is well secured since it is not movable and can easily be identified.
DURABILITY: A property can stand for a long time, this make that estate to be real. Since real estate can be durable, market sales primarily of existing stock rather than new buildings.
HIGH TRANSACTION COST: the transaction cost when buying a property is hefty, because there are processes to pass through before owning that property legally. Such processes involve stamp duty, legal fees, lenders mortgage insurance, mortgage transfer fee and so on. It is applicable when selling out a property; you have to settle Agent fees, capital gains and so on.
HETEROGENEOUS: Properties are different in kind or nature that will make it difficult to ascertain a fair market value. As people have differences in test and need, as such makes the property price and test to differ.
INVESTMENT AND CONSUMPTION GOODS: Property (estate) serve as investment and consumption purpose, since the property is immobile, it can be lease out. The lessee is consuming, while the lessor is investing on that property.
Real estate market is dynamically affected by the attitude, motivation and interaction of buyers and sellers. The behaviors and decision of buyers and sellers are influenced by social, economic, governmental and environmental factors.
Each property is unique-heterogeneous. No true property are identical, they are physically and geographically different.
Only a few buyers and sellers act on time, within one price range at a location. No one has large enough shares in the market to dominant the supply and control the price.
Prices of properties are relatively highly few pay with cash. Purchase decision and influenced by the types and amount of financing available, interest rate, down payment required and loan duration.
There is no central market for property, such as the KLSE for stocks. Buyers and sellers are brought to further through various communications, channels and through estate agents.
The lack of a central market, coupled with incomplete information, property market is known as a market of imperfect knowledge, where opportunities and threat around.
Property are relatively had to market and not liquid because they are durable expensive product (unlike perishable, consumption goods), require financial and not movable to where the demand is.
Project takes several years to be build, and while new units are being built, oversupply may set in.
CAPITAL MARKET
Capital markets are financial markets for buying and selling of long term debt or equity backed securities. This market channel the wealth of savers to those who can put it to long term productive use, such as companies or government making long term investments. Capital markets are defined as market in which money are provided longer than a year.
Modern capital markets are almost invariably hosted on computer based electronic trading system; most can be accessed only by entities within the financial sector or the treasury department of governments and corporations, but some can be accessed directly by the public.
Entities hosting the system include stock exchanges, investment banks and government department. The key division within the capital market is within the primary and secondary market.
COMPARISON BETWEEN THE CAPITAL MARKET AND OTHER MARKETS
CAPITAL MARKET
Capital market are used for the raising of long term finance such as the purchase of shares, or for loans that are not expected to be fully paid back for at least a yearMONEY MARKET
The money market are used for the raising of short term finance, sometimes for loans that are expected to be paid back as early as over nightCAPITAL MARKET
May trade in other financial securities including bonds, derivative contracts such as options, various loans and other debts instruments, and commodities futuresSTOCK MARKET
Stock market are primary and secondary market that trade among banks under writing stock and public investors trading stock, respectively.CAPITAL MARKET
They are financial markets for the buying and selling of long-term debts or equity backed securities.PROPERTY MARKET
Property market is the sum total of all the smaller and larger markets operating in different types of interest in land and buildings
ROLE OF PROPERTY MARKET TO THE ECONOMY
Real estate is an enabler of economic auditing by offering the space for businesses to operate it effectively provides the business infrastructure without which an advanced economy could not operate. Furthermore, high quality, modern and immovable buildings, contribute to maintaining, contribute to maintaining the country reputations as an international trade hub and attract skills and capital from the rest of the world.
Real estate is a source area; not only for architects builders and engineering for legal and financial advisors surveyors, facilities managers and all those that provide for the construction industry.
Real estate plays a vital role in the provision of infrastructure creators, the conditions for property development, but it should not be forgotten that this is a two-way relationship. Tube extensions schools, hospitals and so on are all examples of projects be whose viability can be highly dependent.
Real estate represents an attractive asset class for institutional investors such as pension funds, insurance companies and sovereign wealth funds. Not only does this maximize investment opportunities and returns for pensioners and savers from around the world, it also malaise large urban regeneration. Projects possible, such as at buffer power station and green which peninsula.