Copyright timesnownews
In Hong Kong, where property prices are skyrocketing, many are opting to live in 'haunted houses' to secure significant discounts on rent, which otherwise would put a hole in their pockets. This phenomenon reportedly has emerged in one of the world's most expensive real estate markets, where the charm of lower costs often outweighs the fear associated with 'haunted' places and tragic pasts. This list of houses marked 'haunted' is usually found on most estate agent websites. Understanding the Haunted House Trend The concept of 'haunted houses' in Hong Kong primarily refers to apartments where unnatural or premature deaths have occurred. Hong Kong where a modest apartment can cost you half of a monthly salary, the 'benefit' to live in such properties is considerable. Discounts can reach up to 34% for homes linked to murders, unnatural deaths making them alluring options for budget-conscious renters, according to the CNN report. Ng Goon-lau, an investor renowned for his extensive portfolio of haunted properties, told the CNN: "The discount could be massive, and many people who don’t mind can rent these places below the market price." Goon-lau, who has made good fortunes out of the 'haunted' house business, is often referred to as the 'King of Haunted Houses.' The growing popularity for this market also reflects on the acceptance, possibly out of necessity, of these unique rental opportunities. The Impact of Cultural Beliefs Though there are financial benefits, but for many haunted homes are 'no deal' due to cultural beliefs rooted in Buddhism and Taoism. The fear of bad fortune associated with tragic deaths often deters potential renters. Feng shui master Andrew Kwan, according to the CNN report, noted that the spirits of those who died tragically may linger in the properties, causing distress for future occupants. "Their hatred may stay. Their spirit may remain in the apartment," Kwan says, illustrating the cultural weight of these beliefs. The Hong Kong rent market, however, has adapted to this phenomenon, with estate agents listing haunted properties on their websites and people willingly opting for it. For example, Spacious.hk maintains a comprehensive list of such homes, detailing the circumstances of past deaths, many of which involve falls from heights in the densely populated city. Market Dynamics and Pricing The stigma attached to haunted properties has created a unique market dynamic. Research led by Utpal Bhattacharya, Chair Professor of Finance at Hong Kong University of Science and Technology, indicates that properties labelled as haunted can see their value drop by an average of 20%, with some experiencing even steeper declines following violent incidents. Bhattacharya states, "The belief in feng shui is quite strong among Chinese, and most buyers have a large distaste for haunted houses." Although there is no legal requirement for property owners to disclose the history of a home, real estate agents usually provide this information if and when asked. But this lack of mandatory disclosure pushes potential renters to conduct thorough inquiries to understand the history of a property. Opportunities for Investors For some, the potential risks associated with haunted houses present lucrative investment opportunities. Investors like Ng capitalise on the fear surrounding these properties by purchasing them at reduced prices and leasing them out at competitive rates. He emphasises that many renters do not have strong objections to living in such homes as long as the financial benefits are clear. However, not all investors share this view. Eric Pau, Senior Associate Director at Ricacorp Properties, told CNN that banks often view haunted properties as high-risk investments, making financing difficult. "In most cases, mortgages will not be granted," Pau explains, adding that the stigma can lead to significant financial losses for property owners. A Cautious Approach While some renters are willing to take the plunge into haunted living, many remain cautious, particularly regarding properties linked to high-profile murder cases. Incidents such as the brutal murders committed by British banker Rurik Jutting in 2014 have left lasting impacts on property values. Following the tragic events in his apartment, the value of the unit plummeted significantly, illustrating the profound effect of such histories on the real estate market. In conclusion, the trend of opting for haunted houses in Hong Kong is a complex interplay of financial necessity and cultural beliefs. As property prices continue to soar, some renters find themselves drawn to these unique opportunities, while others remain hesitant, influenced by the fear of bad luck and the unknown. (With inputs from CNN)
