The results of a new study show that certain superstitious practices can have a significant impact on real estate transactions, according to a Canada.com report.
The study, which was published in the Economic Inquiry journal, shows that there are enormous costs associated with “magical thinking” in real estate transactions, especially in neighbourhoods with a high concentration of Chinese residents.
“We do find premiums and penalties associated with numbers that are thought to be lucky or unlucky in the Chinese culture. And these are really sizable transactions,” said lead author Nicole Fortin, a professor at the University of British Columbia’s Vancouver School of Economics.
Researchers analyzed approximately 117,000 home sales between 2000 and 2005, noting that houses with address numbers ending in ‘4’ were sold at a discount of 2.2 per cent.
Alternatively, addresses ending in ‘8’ were sold at a premium of 2.5 per cent. In Chinese culture, four is associated with death, while eight is linked to prosperity.
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