Discussion  

 

The initial stages of this study included the creation of spatial dataset with all the locations of features in Vancouver that would negatively affect Feng Shui.  As evident in Figure 1, there are only a few locations of funeral homes and crematoriums in Vancouver. These locations are also correlated with areas that are known for low cost real estate and a high density of retail shops (Kingsway and West Hastings Street). It should be noted that these are located in areas that are less desirable then most areas in Vancouver, which could also be correlated to lower sales prices. The location of care centers however, where more uniformly distributed throughout Vancouver. These locations though are less obviously negative. While this category includes hospices where a lot of death occurs, some people may also find living near a hospital as a positive selling feature.

The data presented in Table 1 outlines the results of GWR analysis with different input variables. The variables which were able to best predict the sales price in Vancouver were ‘home size’ and the combination of ‘home size’ with the negative “Feng Shui Elements’ as described in the Methodology section. An illustration of the geographic difference in the GWR results between lot size and home size is shown in Figure 2. The greatest difference visible in the greater predictive capability of the model is in southern Vancouver. This may be attributed to cultural differences of the people who buy in that area. The availability and size of a yard in this area may be less important to number of bedrooms, for example. An illustration of the GWR results between ‘home size’ with and without the negative Feng Shui elements is shown in Figure 3. Here it is difficult to discern what areas of Vancouver this model better predicts sale price in. This is not surprising though, given the small increase in the R² value.

In order to determine if the areas where this model best predicts sales price is correlated to areas with a higher population of Chinese residents, the results were layered over a chloropleth map of ‘Chinese visible Minority’ as determined by the Canadian 2006 Census (Figure 4). Although no strong correlation are visually apparent, one may note the region where the model best predicts is also one of a medium number of Chinese residents (numbers reported by 20% population survey). Given the hypothesis of this study, one would expect to see the areas with the most Chinese residents (black chloropleth) with the highest local R² (dark blue dots).  Although the areas with the highest Chinese population where not included in the study region (as determined by the sales data availability), not all of the medium number of Chinese areas where correlated with high R² values.

Given that past research concluded that the presence of a 4 in an address decreases the sold price (in specific communities) the output of this model should give an over estimate; as it does not account for the presence of 4’s.  When the average value of the standard residuals where compared between homes with and without 4’s, a difference was found. Those homes with 4’s in their address had a positive standard residual (therefore the observed value was higher than the expected in the model). The homes with no 4’s however, resulted in an average negative standard residual value (where the observed value was less than the expected). It may then be concluded then, that as the expected value generated in this model is less the observed value in homes with 4’s, it does not over estimate the sold value form homes with fours. Therefore this study fails to show the presence of a 4 decreases the sold price of homes in Vancouver. Further analysis of the GWR results was done using the Students T-Test for significance. This test assesses whether the means of two groups are statistically different from another. The assumption was made that the two samples (homes with and without 4’s in their address) have a normal distribution. The resultant value of 0.673 is not large enough to conclude with confidence there is a difference in the sample.

Further analysis


Much of the literature review focused on areas where apartment living was the most common (Hong Kong and Malaysia). This study did not include Vancouver’s Downtown or West End neighborhoods, which are comprised almost entirely of apartment residences. These regions would make for an ideal study region for future analysis.  Many studies reported that it was the 4th or 14th floor where buyers were given a price break (Chau et al. 2001). Also, the effect of a funeral home, for example, may take more of an affect when it is viewed from numerous apartments, as opposed to several houses; as noted in Tung-Leong et al. 2004.

study limitations

 

There were several limitations in this study that could be overcome in future analysis.  There are other variables that are included in the From School of Feng Shui, which could be incorporated into a model predicting sales price. However, like the issue surrounding the presence of 4’s, these variables are primarily binary. Examples include direction the home faces, presence and flow of water, and niche; the site location, ideally located by a mountain ridge (Mak & Ng, T 2005). A model that allowed for the analysis of binary variables was beyond the scope of this study and the capability of ArcMap 10.  Additionally, further sorting and grouping of the initial sales data could result in more powerful results.  Ideally, one would solely examine houses belonging to one age group. Many other studies constrained their data to a new development site, where homes are all new, and furnished with the same flooring, appliances and landscaping etc. Using only this type of sales data would help to eliminate other variables that might influence sales prices.