THE IMPACT OF LUCKINESS OF NUMBERS IN LEASEHOLD CONDOMINIUM MARKET

Abstract

The impact of popular lucky number 8 and unlucky number 4 on the values of leasehold condominiums in Singapore is studied using the hedonic price model. The transacted sales price was regressed against the last digit of the unit number of the condominium together with locality and positional variables. A total of 8,947 sales transactions among 12 major leasehold condominium projects from January 1995 to March 2005 obtained from Real Estate Information System (REAL1S) were used. The results show that unit numbers ending with 8 increases the sales value while those ending with 4 reduce the sales value. Prices were also determined by floor level, floor area, age of property, distance from CBD, pool view and relative price indices. Surprisingly, the data also shows that unit numbers ending with 7 also increases the sales price.