THE IMPACTS OF NUMBERING, ORIENTATION AND VIEW ON RESIDENTIAL PROPERTY PRICES

Abstract

Easterner's beliefs, such as feng shui and geomancy, have always been considered to have an impact on property values. This analytical study seeks to examine whether the orientation, view and auspicious sounding house numbers of residential properties by themselves affect the property value. This empirical research is based on the first-time transacted sales prices of 1,246 houses from 1994 to 2002. Therefore this research focuses only on the sale transactions between developers and house buyers. The data is analyzed using hedonic pricing model estimated by multiple linear regressions. The results show that a house with poor orientation, that it's main entrance facing West or afternoon sun is sold at a discount of 2.3%. While a house with a good view, that it's main entrance facing park/playground or open spaces is sold at a premium of 5.6%. Finally, lucky house numbers are 2 and 8. With these numbers, a house is sold at a premium of 3.0% and 3.9% respectively. However, other house numbers such as 4 are not considered to be unlucky numbers as their sales prices are not affected. These findings provide significant and useful implications for the theory and the practice of real estate development, investment, appraisal and marketing.