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Hedonic Prices and House Numbers: The Influence of Feng Shui

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Abstract

In contemporary practice, feng shui incorporates a wide range of concepts considered to affect a person’s luck. These include traditional ideas about site selection and building design, as well as newer beliefs about the “luckiness" of certain numbers. Focusing on an area with a relatively high percentage of Chinese households in Auckland, New Zealand, this paper uses hedonic price analysis to investigate whether house values are affected by lucky and unlucky numbers. Sales transactions for 1989 to 1996 are used in this analysis. The results demonstrate that lucky house numbers are capitalised into house values.

Suggested Citation

  • Steven C. Bourassa & Vincent S. Peng, 1999. "Hedonic Prices and House Numbers: The Influence of Feng Shui," International Real Estate Review, Global Social Science Institute, vol. 2(1), pages 79-93.
    • Handle: RePEc:ire:issued:v:02:n:01:1999:p:79-93
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    Cited by:

    1. Dmitry Burakov, 2018. "Do discounts mitigate numerological superstitions? Evidence from the Russian real estate market," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 13(5), pages 467-470, September.
    2. James E. Larsen, 2015. "Triskaidekaphobia and North American Residential Real Estate Prices," International Real Estate Review, Global Social Science Institute, vol. 18(3), pages 317-329.
    3. Ng, Travis & Chong, Terence & Du, Xin, 2010. "The value of superstitions," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 293-309, June.
    4. Gang-Zhi Fan & Seow Eng Ong & Hian Chye Koh, 2006. "Determinants of House Price: A Decision Tree Approach," Urban Studies, Urban Studies Journal Limited, vol. 43(12), pages 2301-2315, November.
    5. Evgeny A. Antipov & Elena B. Pokryshevskaya, 2015. "Are buyers of apartments superstitious? Evidence from the Russian real estate market," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 10(6), pages 590-592, November.
    6. Pérez, Sergio Iglesias & Moral-Rubio, Santiago & Criado, Regino, 2023. "Combining multiplex networks and time series: A new way to optimize real estate forecasting in New York using cab rides," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 609(C).
    7. Brad R. Humphreys & Adam Nowak & Yang Zhou, 2016. "Cultural Superstitions and Residential Real Estate Prices: Transaction-level Evidence from the US Housing Market," Working Papers 16-27, Department of Economics, West Virginia University.
    8. Woo, Chi-Keung & Horowitz, Ira & Luk, Stephen & Lai, Aaron, 2008. "Willingness to pay and nuanced cultural cues: Evidence from Hong Kong's license-plate auction market," Journal of Economic Psychology, Elsevier, vol. 29(1), pages 35-53, February.
    9. Chu-Chia Lin & Chien-Liang Chen & Ya-Chien Twu, 2012. "An Estimation of the Impact of Feng-Shui on Housing Prices in Taiwan : A Quantile Regression Application," International Real Estate Review, Global Social Science Institute, vol. 15(3), pages 325-346.
    10. Shum, Matthew & Sun, Wei & Ye, Guangliang, 2014. "Superstition and “lucky” apartments: Evidence from transaction-level data," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 109-117.
    11. Brian A. Polin & Eyal Ben Isaac & Itzhak Aharon, 2021. "Patterns in manually selected numbers in the Israeli lottery," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 16(4), pages 1039-1059, July.
    12. Wen-Chieh Wu & Yu-Chun Ma & Steven C. Bourassa, 2018. "Folk Customs and Home Improvement Decisions," International Real Estate Review, Global Social Science Institute, vol. 21(3), pages 317-341.
    13. Fanhui Meng & Haoming Sun & Jiarong Xie & Chengjun Wang & Jiajing Wu & Yanqing Hu, 2021. "Preference for Number of Friends in Online Social Networks," Future Internet, MDPI, vol. 13(9), pages 1-13, September.
    14. Nicole M. Fortin & Andrew J. Hill & Jeff Huang, 2014. "Superstition In The Housing Market," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 974-993, July.
    15. Terence tai-leung Chong & Angela Fung & Wing-ting Lee & Ka-lai Man, 2009. "Hedonic pricing models for metropolitan bus services," Economics Bulletin, AccessEcon, vol. 29(2), pages 630-637.
    16. Tong V. Wang & Rogier J. D. Potter van Loon & Martijn J. van den Assem & Dennie van Dolder, 2016. "Number preferences in lotteries," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 11(3), pages 243-259, May.
    17. Kwong Wing Chau & Danika Wright & Ervi Liusman, 2018. "The cost of a lucky price," ERES eres2018_240, European Real Estate Society (ERES).
    18. De Paola, Maria & Gioia, Francesca & Scoppa, Vincenzo, 2014. "Overconfidence, omens and gender heterogeneity: Results from a field experiment," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 237-252.
    19. Woei-Chyuan Wong & Nur Adiana Hiau Abdullah & Hock-Eam Lim, 2019. "The Value Of Chinese Superstitions In Malaysia: Evidence From Car Plate Auctioning," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(01), pages 115-137, March.
    20. Jan Fidrmuc & J. D. Tena, 2015. "Friday the 13th: The Empirics of Bad Luck," Kyklos, Wiley Blackwell, vol. 68(3), pages 317-334, August.
    21. Elena B. Pokryshevskaya & Evgeny A. Antipov, 2015. "A study of numerological superstitions in the apartments market," Economics Bulletin, AccessEcon, vol. 35(1), pages 83-88.
    22. Maria De Paola & Francesca Gioia & Vincenzo Scoppa, 2013. "Overconfidence, Omens And Emotions: Results From A Field Experiment," Working Papers 201303, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    23. Chin-Tai Kuo & Yu-Hsi Yuan & Wang-Ze Gao & Chia-Ning Jao, 2023. "The Impact of Recognized Features of Uncomfortable Houses on Auction Prices: A Chinese Cultural Perspective," SAGE Open, , vol. 13(4), pages 21582440231, December.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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