IMPACTS OF GENERAL CHINESE SUPERSTITIONS ON HOUSING PRICE IN SINGAPORE

Abstract

This paper focuses on superstition relating to Singapore’s property market, and attempts to find out the impact of Chinese superstition on the non-landed private housing prices and transaction volume. Common Chinese superstition such as numerology and events are studied in this paper. A 2-prong approach is used in the research process. Besides quantitatively determining the impact through a conventional hedonic regression model, key market stakeholders such as developers, buyers and marketing firms are interviewed and surveyed to explain the statistical results. This is an enhancement of past studies which relies mainly on the hedonic statistical model. Additionally, more market parameters are included, breaking down the overall market into smaller market segments, mainly the new sale and resale market, and also by new towns and older towns. Regression results showed superstition does impact property prices, with the resale market being impacted to a larger extent than the new sale market. Estates with a higher proportion of young people generally recorded a larger impact from superstition as compared to estates with more old people, which is contrary to stereotypical perception that the older generation tended to more superstitious. Also, it was found that the Hungry Ghost Month did not have any negative impact on transaction volume, nor does it negatively impact transaction prices. Generally, it was found that developers were superstitious in nature, and would try to avoid superstition taboos in their design strategies. However, when it comes to pricing, developers do not offer discounts for unlucky units, but they charge premiums for lucky units, maximizing their profits. Given the inherent nature and implications of superstition in both culture and the property market, improvements can be considered, in areas such as marketing and sales strategies, design of new developments and policy framework changes, achieving effective governance yet at the same time allowing for more market flexibility.