How Haunted Home Sales Affect Nearby Property Prices in Hong Kong

Summary

This research summary describes a study of price spillovers from homes in Hong Kong identified as haunted. It reports progressively smaller average price declines across nearby properties: the affected unit, other units on the same floor, homes in the same neighborhood, and homes in the same residential complex. The pattern illustrates how a negative property-quality shock may influence surrounding transactions beyond the directly affected home.

Key ideas

• The study uses Hong Kong’s real estate setting to examine the price effects of haunted-home designations.
• It reports the largest average decline for the affected unit, with smaller declines at greater proximity.
• The authors estimate negative spillovers associated with a property-quality shock.
• The summary attributes most of the spillover to reduced demand rather than distressed-sale supply.
• The document provides a brief account of the study, not its full identification strategy or robustness analysis.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.