IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v13y2023i4p21582440231217901.html
   My bibliography  Save this article

The Impact of Recognized Features of Uncomfortable Houses on Auction Prices: A Chinese Cultural Perspective

Author

Listed:
  • Chin-Tai Kuo
  • Yu-Hsi Yuan
  • Wang-Ze Gao
  • Chia-Ning Jao

Abstract

This study examines the influence of negative Feng-shui features on the prices of foreclosures (the houses subject to court-enforced auction) in Taiwan using the Google Street View function. The research objectives are threefold. Firstly, the study aims to compare whether foreclosed houses with negative Feng-shui features have longer auction times and higher discount rates compared to those without such features. Secondly, it seeks to explore the impact of negative Feng-shui features on investors in the foreclosed house market. Lastly, the study aims to assess the varying degrees of influence of different negative Feng-shui features on foreclosure prices. The findings of this study indicate that in the metropolitan area of Taiwan, foreclosures with more negative Feng-shui features tend to have longer auction times and higher discount rates compared to those without such features. Negative Feng-shui features may cause delays in investor bidding. Among the 12 negative Feng-shui features analyzed, only the presence of “facing-temple†is found to have a negative effect on foreclosure prices. This suggests that foreclosures with the “facing-temple†feature tend to have lower prices and potentially higher discount rates. The other 11 negative Feng-shui features do not have significant effects on auction pricing. This study discovered that the “facing-temple†was a significant negative Feng-shui feature in foreclosures in Taiwan against the traditional perspective. And it provides investors’ concerns toward foreclosures and their tendency in prices of foreclosures in Taiwan.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231217901
    DOI: 10.1177/21582440231217901
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440231217901
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440231217901?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Asad Aziz & Muhammad Mushahid Anwar & Hazem Ghassan Abdo & Hussein Almohamad & Ahmed Abdullah Al Dughairi & Motrih Al-Mutiry, 2023. "Proximity to Neighborhood Services and Property Values in Urban Area: An Evaluation through the Hedonic Pricing Model," Land, MDPI, vol. 12(4), pages 1-12, April.
    3. Weidong Qu & Xiaolong Liu, 2012. "Assessing the Performance of Chinese Land Lease Auctions: Evidence from Beijing," Journal of Real Estate Research, American Real Estate Society, vol. 34(3), pages 291-310.
    4. John Y. Campbell & Stefano Giglio & Parag Pathak, 2011. "Forced Sales and House Prices," American Economic Review, American Economic Association, vol. 101(5), pages 2108-2131, August.
    5. Christopher Mayer, 2011. "Housing Bubbles: A Survey," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 559-577, September.
    6. Ben C. Arimah, 1992. "An Empirical Analysis of the Demand for Housing Attributes in a Third World City," Land Economics, University of Wisconsin Press, vol. 68(4), pages 366-379.
    7. Potrawa, Tomasz & Tetereva, Anastasija, 2022. "How much is the view from the window worth? Machine learning-driven hedonic pricing model of the real estate market," Journal of Business Research, Elsevier, vol. 144(C), pages 50-65.
    8. Helen X.H. Bao & Alan T.K. Wan, 2004. "On the Use of Spline Smoothing in Estimating Hedonic Housing Price Models: Empirical Evidence Using Hong Kong Data," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(3), pages 487-507, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manuel Adelino & Antoinette Schoar & Felipe Severino, 2012. "Credit Supply and House Prices: Evidence from Mortgage Market Segmentation," NBER Working Papers 17832, National Bureau of Economic Research, Inc.
    2. Wu, JunJie & Sexton, Steven & Zilberman, David, 2019. "Energy price shocks, household location patterns and housing crises: Theory and implications," Energy Economics, Elsevier, vol. 80(C), pages 691-706.
    3. Velma Zahirovic-Herbert & Karen M Gibler, 2022. "The effect of film production studios on housing prices in Atlanta, the Hollywood of the South," Urban Studies, Urban Studies Journal Limited, vol. 59(4), pages 771-788, March.
    4. Suarez, Javier & Sánchez Serrano, Antonio, 2018. "Approaching non-performing loans from a macroprudential angle," Report of the Advisory Scientific Committee 7, European Systemic Risk Board.
    5. Christopher Mayer & Edward Morrison & Tomasz Piskorski & Arpit Gupta, 2014. "Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide," American Economic Review, American Economic Association, vol. 104(9), pages 2830-2857, September.
    6. Biswas, Arnab & Cunningham, Chris & Gerardi, Kristopher & Sexton, Daniel, 2021. "Foreclosure externalities and Vacant Property Registration Ordinances," Journal of Urban Economics, Elsevier, vol. 123(C).
    7. Cristina Cella & Andrew Ellul & Mariassunta Giannetti, 2013. "Investors' Horizons and the Amplification of Market Shocks," The Review of Financial Studies, Society for Financial Studies, vol. 26(7), pages 1607-1648.
    8. Sadayuki, Taisuke, 2018. "Measuring the spatial effect of multiple sites: An application to housing rent and public transportation in Tokyo, Japan," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 155-173.
    9. Agarwal, Sumit & Amromin, Gene & Ben-David, Itzhak & Chomsisengphet, Souphala & Evanoff, Douglas D., 2014. "Predatory lending and the subprime crisis," Journal of Financial Economics, Elsevier, vol. 113(1), pages 29-52.
    10. Michele Loberto, 2023. "Foreclosures and House Prices," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 397-424, March.
    11. Guiso, Luigi & Zingales, Luigi & Sapienza, Paola, 2009. "Moral and Social Constraints to Strategic Default on Mortgages," CEPR Discussion Papers 7352, C.E.P.R. Discussion Papers.
    12. Steffen Andersen & Kasper Meisner Nielsen, 2017. "Fire Sales and House Prices: Evidence from Estate Sales Due to Sudden Death," Management Science, INFORMS, vol. 63(1), pages 201-212, January.
    13. Deeksha Gupta, 2018. "Too Much Skin-in-the-Game? The Effect of Mortgage Market Concentration on Credit and House Prices," 2018 Meeting Papers 512, Society for Economic Dynamics.
    14. Ben C. Arimah, 1997. "The Determinants of Housing Tenure Choice in Ibadan, Nigeria," Urban Studies, Urban Studies Journal Limited, vol. 34(1), pages 105-124, January.
    15. Chan, Sewin & Gedal, Michael & Been, Vicki & Haughwout, Andrew, 2013. "The role of neighborhood characteristics in mortgage default risk: Evidence from New York City," Journal of Housing Economics, Elsevier, vol. 22(2), pages 100-118.
    16. Todd Sinai, 2012. "House Price Moments in Boom-Bust Cycles," NBER Chapters, in: Housing and the Financial Crisis, pages 19-68, National Bureau of Economic Research, Inc.
    17. Atif Mian & Amir Sufi & Francesco Trebbi, 2015. "Foreclosures, House Prices, and the Real Economy," Journal of Finance, American Finance Association, vol. 70(6), pages 2587-2634, December.
    18. Agarwal, Sumit & Amromin, Gene & Ben-David, Itzhak & Chomsisengphet, Souphala & Evanoff, Douglas D., 2011. "The role of securitization in mortgage renegotiation," Journal of Financial Economics, Elsevier, vol. 102(3), pages 559-578.
    19. Marcel Fischer & Roland Füss & Simon Stehle, 2021. "Local house price comovements," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(S1), pages 169-198, March.
    20. John P. Harding & Jing Li & Stuart S. Rosenthal & Xirui Zhang, 2022. "Forced moves and home maintenance: The amplifying effects of mortgage payment burden on underwater homeowners," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(2), pages 498-533, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231217901. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.