Feng Shui & Vancouver real estate

When people of different ethnic origin immigrate to new areas of the world, their  beliefs and customs come with them. As of the last Canadian Census (2006) Vancouver is reported to be composed of 30% of people with Chinese heritage.  The traditional ancient Chinese system of Fen Shui incorporates the Laws of Heaven and Earth in order to improve one’s quality of life. This practice extends into the present day process of choosing and purchasing a home.  Given potentially 30 % of the home buys in Vancouver may be influenced by Feng Shui theory, can home value be predicted by considering Feng Shui elements?

Purpose of this Study:

1.      Identify Feng Shui elements that have been demonstrated in other research to affect real estate value

2.      Create a GWR model incorporating these elements to predict real estate value

3.      Examine the spatial relationship between areas of Vancouver with a high number of people of Chinese origin and success of the GWR model.

Feng Shui, is an ancient Chinese system of aesthetics that improves the quality of life through the incorporation of Heaven (astronomy) and Earth (geography)  enabling a person to receive positive Qi.  In English, Feng Shui literally translates to “wind-water”. Although the concepts of Feng Shui have been practiced for many decades in Asian countries, it is becoming increasingly popular in western countries (Mak & Ng, T 2005) .

The specific practices of Feng Shui may be classified into two main categories: the Form School and the Compass School. It is the Form School which is centered on the physical configuration of geographical features and thus the built environment (Mak & Ng, T 2005).  This research aims to explore the concepts of the Form School in relation to the real-estate market in Vancouver, British Columbia.

It has been suggested that Feng Shui theory is a traditional Chinese architectural theory that enables for preferable dwelling sites and building layouts to be selected; providing a theory for design and domestic architecture (Mak, 1995). In his paper, The art and science of Feng Shui—a study on architects’ perception, Mak summarizes the basic concepts of the Form School. First written by Guo Pu, in the Book of Burial, the Form School is characterized by five main elements: Qi, Wind-water, Four Emblems, Form and Direction theories. Qi is the representation of the cosmic spirit, influencing all things and the provider of energy to human beings. Traditionally, linked with geographical features, Qi is an essential condition for a preferable location (Mak & Ng, T 2005). 

There is a significant relationship between to the practice of Feng Shui, and residential property prices, as followers believe shape and orientation of a site and building, its layout and numbers included in the street address, can all influence health, happiness and prosperity of the occupants’ (Bond, 2008). Researchers Chau et al. (2001) demonstrated that these beliefs of Feng Shui can impact the price paid for property, as the purchaser will shy away from “bad influences” and seek out “auspicious influences” such as lucky and unlucky numbers. Moreover, apartments with “lucky” numbers (1,6 and 8) in the address  have been reported to sell at significantly higher prices (Chau et al. 2001).

 A survey of real estate agents and brokers, conducted by Bell (1999) revealed 70 % of Asian buyers in Southern California consider Feng Shui in their buying decision, and 30% employ the services of a Feng Shui master to inspect the property and give input. The most undesirable items considered includes homes that have front doors facing the street, the number ‘‘4’’ in an address, and lots at a T-intersection (a street pointing at it).

The presence of a cemetery view, in a study conducted by Tung-Leong et al. (2004) was examined to determine its impact on housing prices. In the study region of Hong Kong and Penang, Malaysia, a view of a cemetery had a negative and pronounced impact on price. Moreover, it was found that the negative impact of a bad view (cemetery view) on condominium price is much more pronounced than a good view (sea view).

The significant presence of Feng Shui in Vancouver, certainly in relation to housing was demonstrated in January of 2011, when a 15 bed hospice was proposed. The location was set to be in close proximity to the UBC campus, and would be built next to the Promontory, a high rise condominium, where two bedroom condos sell for one million. Due to the many residents in the Promontory of Asian descent, and their belief that living close to the dead brings on bad luck, a surge of opposition to the proposal was came into effect. Additionally, people not of Asian descent were also concerned with the proposal due to fears of decreased property value (CBC news, 2011).