Cultural Influence on Housing Transaction Prices
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摘要In a Chinese dominated society, the fondness of number 8 can be observed everywhere. Number 8 is regarded as a lucky number in modern Chinese culture. Previous studies suggest that buyer paid a premium for properties with the number 8 in its address in Chinese dominated markets. Chau et al (2000) further explained the premium is a price paid for luxury goods as the premium only exist during the boom period. This study shows that this lucky number is sometimes used as icebreaker in a negotiation. When buyers and sellers cannot agree on the transaction price due to information asymmetry, they may be willing to take chances and settle on a lucky transaction price. Based on housing transaction prices in Hong Kong, we found that transaction prices with number 8 appeared most frequently as the last non-zero digit (thousands digit) of transaction prices. In addition, we also found that this tendency increases with the age of the transacted property after controlling for the perceived potential risk of agreeing on the wrong price. As a building ages over time, information asymmetry about the quality of its housing unit increases, which make it more difficult for the buyer and seller to agree on the transaction price. Due to Chinese people affection for the number 8, this number sometimes serves as an icebreaker during the price negotiation process, which resulted in the transaction price with number 8 as the last non-zero digit. The probability of occurrence of other digits does not show any significant positive correlation with age.
著者K. W. Chau, Danika Wright, Ervi Liusman
會議名稱23rd Asian Real Estate Society (AsRES) International Annual Conference
關鍵詞Lucky number, Culture, transaction price, information asymmetry, bargaining

上次更新時間 2018-25-10 於 09:54