Haunted Houses No Longer Taboo for Desperate Hong Kong Homebuyers

(Bloomberg) -- Hong Kong property prices have risen so high some desperate house hunters are now prepared to do the once unthinkable and buy a ‘haunted home.’

Over half the respondents in a REA Group Ltd. survey published Thursday said they would consider purchasing a haunted apartment. Around 65% said price would be the motivating factor.

“Property prices are still way too high for most people living in Hong Kong, so many have started to explore other alternatives,” said Kenneth Kent, REA’s Hong Kong country manager.

In Hong Kong, units in which people have died due other than by natural causes are considered haunted. Apartments where suicides, murders and accidental deaths have occurred are typically sold at a 10% to 20% discount, according to Perry Fong, a director at Centaline Property Agency Ltd.

“This is generally a taboo in the market, since it is dominated by locals,” said Fong. “Foreigners are less concerned, and may buy them for the lower prices.”

Even though Hong Kong is one of the most westernized cities in Asia, buying a haunted home is unthinkable to most local residents. The houses are regarded as having bad feng shui, which is a major concern for buyers.

Hong Kong’s property prices recently climbed to a record before declining against the backdrop of increased U.S.-China trade tension. Market sentiment has turned more bullish in recent days with the Federal Reserve opening the door to a rate cut and news of more promising trade talks.

To contact the reporter on this story: Shawna Kwan in Hong Kong at wkwan35@bloomberg.net

To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Peter Vercoe

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