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An Estimation of the Impact of Feng-Shui on Housing Prices in Taiwan : A Quantile Regression Application

Author

Listed:
  • Chu-Chia Lin

    (Professor, Department of Economics, National Chengchi University, Taipei, Taiwan)

  • Chien-Liang Chen

    (Professor, Department of Economics, National Chi-Nan University, Nan-Tou County, Taiwan)

  • Ya-Chien Twu

    (M.A., Department of Economics, National Chengchi University, Taipei, Taiwan)

Abstract

Feng-shui is an old and traditional body of knowledge in Chinese society. Feng-shui has a significant influence on many aspects in daily life for most Chinese, including choosing locations for dwelling units, offices, burial sites, and so on. However, there have been few studies on the impact of feng-shui on housing prices. By applying a housing hedonic equation and a data set of 77,624 observations in Taiwan, we have attempted to estimate the impact of feng-shui on housing prices. We find that all six types of bad feng-shui have a significantly negative impact on housing prices. Moreover, by applying a quantile regression, we find that most of the bad feng-shui has a stronger negative impact on expensive dwelling units. Our findings confirm that people who buy expensive housing units care about feng-shui more than those who buy less expensive housing units.

Suggested Citation

  • 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.
    • Handle: RePEc:ire:issued:v:15:n:03:2012:p:325-346
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    References listed on IDEAS

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    4. 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.
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    Cited by:

    1. Lin, Jen-Jia & Cheng, Yu-Chun, 2016. "Access to jobs and apartment rents," Journal of Transport Geography, Elsevier, vol. 55(C), pages 121-128.
    2. Yen-Jong Chen & Cheng-Kai Hsu, 2020. "Comparison of Housing Price Elasticities Resulting from Different Types of Multimodal Rail Stations in Kaohsiung, Taiwan," International Real Estate Review, Global Social Science Institute, vol. 23(3), pages 1043-1058.
    3. Yen-Jong Chen & Cheng-Kai Hsu, 2020. "Comparison of Housing Price Elasticities Resulting from Different Types of Multimodal Rail Stations in Kaohsiung, Taiwan," International Real Estate Review, Global Social Science Institute, vol. 23(3), pages 417-432.

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

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