2. Estudio de la conductividad con percolación en CNTs 5
3.7. Ecuaciones gobernantes en una malla 3D
Table 4 shows the expected sign of the variables.
Table 4 : Expected sign of variables
Variables Definition Expected Sign
AGE Age of Property (days) -
FL Floor Level +
GFA Gross Floor Area ?
LF* Lucky floor +
CV* Chimney view -
GV* Graveyard view -
The signs are estimated based on the foundation of relevant literature reviews. Positive (+) and negative (-) signs of the variables indicate the positive and negative impact of the variables on property price. Premium is brought by to the property price when there is positive impact. On the contrary, penalty is brought if there is negative impact on the property price. To expect the result of the variables should not only include the expectation of signs, but also the magnitude of the coefficients. But it is not possible to estimate the magnitudes of the coefficients of the variables in this moment.
6.6.1 Expected Result of Structural Variables
AGE
The coefficient of the AGE is predicted to be negative (-), as the older property is subjected to a lower property price. It is because the older the property, the greater the quality of the building depreciated. When the age of the building increases, it is more likely that structure problem will occur. Thus, the residents will bare higher building maintenance cost.
FL
The coefficient of FL is expected to be positive, as the higher the floor level, the higher the higher the property price is. Thos properties with high floor level provide a better living environment in Hong Kong, which is a high population density city. It is because high floor level enjoys a better quality of air, as well as a more opened and wide view. In addition, those high floor level properties subject to less traffic noise as they are away from the road.
GFA
It is very common to use GFA8 as proxy of property size. The impact of GFA on the property price is uncertain, as the effect of the GFA is offset by two different factors.
Firstly, property size is regarded as an economic good. Real estate consumer prefers a larger living space, so floor area has positive impact on property prices. However, some of the real estate consumers are subjected to financial constraint. For example, new-formed family prefers smaller size premise because of budget constraint. As the demand of different property size depends on the income class of the real estate consumers, the sign of the GFA coefficient depends on the consumer’s income. Therefore, the sign of the variable can be either positive or negative.
6.6.2 Expected Result of Dummy Variables
LF
Chinese people have the aptitude toward the number “8”, since the pronunciation of “8”
is similar to “wealth” in Chinese. Therfoere, those numbers with “8” are regarded as
“lucky number”. Chinese people link floor number with “lucky number” to good luck.
Thus, people will prefer the apartment with “luck floor number”. They believe that owning apartment with “lucky floor number” helps them in earning money. This phenomenon is significant in Hong Kong, as Hong Kong is a place with a dominant population of Chinese people. So, it is expected that the coefficient of LF is positive.
8 According to the Building Ordinance, GFA is the area contained within the external walls of the building measured at each floor level, together with the area of each balcony in the building, which shall be calculated from the overall dimensions of the balcony and the thickness of the external walls of the buildings.
Source: Building Ordinance (Cap. 123) in Regulation 23(3) of the Building (Planning) Regulations for approval of building plans for all building development in Hong Kong.
GV
Penalty is expected for the properties subjecting to graveyard view. It is in fact a norm that in Hong Kong the real estate consumer are not keen on purchasing properties with graveyard view. In psychological aspect, the uncertainty after death is the main reason. In the cultural aspect, graveyard view is regarded as an imbalance of yin and yang in Feng
Shui. Thus the decision of real estate consumers towards properties with graveyard view
is affected by the above factors. As no one in the property market prefers the property with graveyard view, the price of those properties decrease and thus the coefficient of the GV variable would be negative.CV
The coefficient of CV is expected to be negative. It is revealed that chimney view is regarded as negative Feng Shui. The real estate consumers are not willing to purchase property with chimney view, because they afraid of the bad fortune that the chimney brings to them. In the case of South Horizons, there are three chimneys present in the Lamma Power Station, which look like “three Chinese incenses”. People may think the
“three Chinese incenses” are cursing them. Therefore, Real estate purchaser will pay less for the property in order to compensate their potential loss or difficult in property resale.
Hence, it is expected that chimney view brings negative impact on property prices.
6.7 Interim Conclusion
This study is aiming to test the effect of Feng Shui on property price, so that the concept
“culture affects consumer behaviour” can be verified. In this study, two Feng Shui factors are used for the empirical analysis, which are chimney view and graveyard view. An empirical model is derived by inserting dummy variables of chimney view and graveyard
view. It is expected that both chimney view and graveyard view affect the property price negatively.