The Curse of Stigmatised Houses: How Cultural Beliefs Affect Property Values in Malaysia

Abstract

Stigmatised properties refer to residential units that are psychologically affected by past events such as death, crime, or alleged paranormal occurrences which may influence buyer perceptions despite having no physical defects. In culturally sensitive contexts such as Malaysia, where traditional beliefs and superstitions remain influential, such properties may face distinctive market challenges. This study investigates the market implications of stigmatised houses in Malaysia from the perspective of property industry professionals. A structured questionnaire survey was administered to 54 respondents, comprising licensed estate agents and property negotiators. The findings indicate that cultural beliefs significantly shape market reactions toward stigmatised properties, leading to extended marketing periods and price discounts compared to non-stigmatised units. The results further reveal that many agents are reluctant to accept listings of properties associated with negative stigma due to reputational and transaction risks. These findings contribute to the limited empirical literature on psychological stigma in emerging property markets and provide practical insights for real estate practitioners and property owners in developing appropriate pricing and marketing strategies for stigmatised properties.