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

Chin-Tai Kuo, Yu-Hsi Yuan, Wang-Ze Gao and Chia-Ning Jao

SAGE Open, 2023, vol. 13, issue 4, 21582440231217901

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.

Keywords: negative Feng-shui features; foreclosures; discount range; auction times; Chinese cultural perspective; uncomfortable houses (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231217901

DOI: 10.1177/21582440231217901

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