By Mar Sánchez-Cascado
Hong Kong, Nov 23 (EFE).– In Hong Kong’s ultra-priced property market, where a square meter can exceed 26,000 euros, superstition has become as decisive as supply and demand: a single death can slash the value of a home by up to 40 percent.
In this mature yet ominous sector, psychology carries as much weight as macroeconomics.
The so-called hongza, homes associated with deaths or violent incidents, have become assets few dare to touch in a market where feng shui and trust can matter as much as the decisions of the US Federal Reserve.
The most recent example is the death of a Filipina domestic worker inside a mansion valued at HK$560 million (about 62 million euros or $72 million) owned by tycoon Zhang Songqiao on The Peak, the city’s most exclusive enclave.
The property has not been put up for public sale.
Industry agents estimate that the mansion has lost between 30 percent and 40 percent of its value compared to similar homes, an adjustment that in most markets might be driven by interest rates or liquidity.
But here, it is dictated by cultural beliefs and social perception. In a landscape where trust is as important as location, even a rumor can shake real estate valuations.
Superstition and Capital
In feng shui, a home where a violent death has occurred is believed to hold disturbed energy, a belief that continues to shape buying decisions.
“These kinds of deaths generate a stigma that affects different buyer profiles differently,” said Natalie Leslie, a consultant at the HomeRUs agency.
“Expatriates tend to be less concerned, although they acknowledge the difficulty of resale. Some are willing to buy such properties at a significant discount, assuming they can only resell to another foreigner.”
The cultural divide is even sharper in the rental market.
“Westerners usually have no objections, while residents of Chinese origin refuse even to visit an apartment with such a history, sometimes ruling out the entire floor,” Leslie added.
The Juwai.com data confirms that aversion to unlucky numbers and homes near cemeteries remains widespread even among young professionals. Western buyers, by contrast, weigh risk against price.
“Many immigrants ignore the taboo to access more affordable neighborhoods, but when they resell, local superstition resurfaces and cuts into profit margins,” Leslie said.
Between Taboo and Transparency
Hong Kong regulations require agents to disclose any known deaths at a property, adding another layer of sensitivity to sales.
When uncertain, buyers often commission a search of the Property Registry, which keeps records of deaths at each address.
Some brokers instead highlight structural improvements, sustainability features or design, aiming for an international clientele.
“The key is to provide context, inform without dramatizing. A hongza property might take twice as long to sell, but at the right price, it will find a buyer,” said another agent who requested anonymity.
Financially, hongza homes present a paradox: while local buyers avoid them, foreign investors and opportunistic funds see space for growth.
Inheritance and Generational Change
Within the local community, family influence keeps caution alive. “Many young people educated outside Asia show less fear, but parents still have a say in the final decision,” Leslie said.
Price recovery among local buyers is almost nonexistent, even decades later.
Expatriates remain the only group consistently willing to purchase such properties at reduced prices, creating a parallel hongza market with growing, though limited, liquidity.
Younger generations educated abroad increasingly prioritize objective factors like location, maintenance and appreciation potential, gradually shifting market behavior. But financial consequences persist.
“Banks or insurance companies may reject a loan if the property appears in databases linked to deaths, because its future liquidity is uncertain,” Leslie warned.
Meanwhile, a niche group of investors is betting on this engineered forgetfulness. In a city of 7.5 million residents crammed into just over 1,100 square kilometers, where land is valued like gold, fear is simply another variable in the real estate equation.
At the same time, inequality in access to housing is worsening, with more people living in precarious conditions such as subdivided flats and container homes. EFE
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