According to Haunted Houses have a Chilling Effect on the Property Market that materialized on The Economist, Hong Kong homebuyers flee from houses where untimely, unnatural deaths have occurred. Is this phenomenon a vague apparition or a measurable economic impact? The infographic below shows an eerie rippling effect of reduced homes prices from the actual unit of grimly deceased to nearby units in the same building, to buildings in the same block. This decrease in demand says a great deal about a cultural perspective especially in a densely populated, high cost of living metropolis like Hong Kong. Based on calculations on numbeo.com, cost of a one-bedroom apartment in Hong Kong is 30% higher than city central Chicago, yet, 20% lower than city central New York. A comparable apartment is slightly cheaper in Beijing, yet more costly in Shanghai. The data show how squeamish Hong Kong homebuyers are taking in account seasonal fluctuations and long-term price trends. This study also points to the reality of “hongza” (凶宅pronounced xiōngzhái in Mandarin) that may cost sellers 15-20% in sales price. The reduced price may have a lasting effect as homes where ghastly murders occurred continue to be depressed even 10-15 years later.
In East Asia, such gruesome housing advice should not go unheeded as a great majority of the population respect the dead and would not trespass lightly on unhallowed grounds. When I traveled in China, taxi drivers refused to drive to the Ming Tombs after 4 pm. They claim that the site is closed then because staff refuse to work there after sundown.
For a related article, click here. What would you do if you were offered a significant cheaper home?
Image captured on https://www.economist.com/graphic-detail/2019/10/31/haunted-houses-have-a-chilling-effect-on-the-property-market?cid1=cust/dailypicks1/
