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

Chu-Chia Lin (), Chien-Liang Chen and Ya-Chien Twu
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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

International Real Estate Review, 2012, vol. 15, issue 3, 325-346

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.

Keywords: Feng-shui; Hedonic Equation; Quantile Regression (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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