Every year in August I renew my parking lot lease, at least a month before it expires in September. And so far, no colossal misfortunes have come my way — save for a few niggles.
But some may tell you to avoid entering into contracts during this time of the year because of Ghost Month, which falls on the seventh month of the Chinese lunar calendar. In 2024, it runs from August 4 to September 2. Believing that bad luck and negative energy are pervasive in this period, proponents of Ghost Month advise hitting pause on real estate transactions.
You’re probably wondering the same thing: does Ghost Month have an impact on real estate in the Philippines?
Let’s dig into it.
Why it's called Ghost Month
The concept of Ghost Month comes from the Hungry Ghost Festival traditionally celebrated in China. During this time, it’s believed that spirits of the deceased make their way to our earthly plain and roam among us.
With the barrier between the spirit and physical world exceptionally porous, believers tend to shy away from making big life decisions, lest unsavory spirits affect the outcome of such activities. Whether it’s buying or moving to a new house, investing in the stock market, or entering into a contract.
This belief has since spread to other Asian countries like Singapore, Taiwan, Vietnam, Malaysia and the Philippines. As a result, affected markets might experience a lull in real estate activity from August to mid September.
Is it real or just pure superstition?
Ghosts may or may not be especially active during this time. Buying that house and lot for sale may or may not be a good idea just yet.
What matters is what you believe in. That belief can influence your action or inaction in the real estate market. And if a sizable portion of the market goes one way or another, it might just become a widespread trend.
Real estate can slow down and people can be extra frugal during Ghost Month, but it can also be a booming time.
For example in Q3 2023, residential real estate prices increased 12.9% year-on-year in the Philippines. In 2022 of the same period, it was a 6.5% boost.
Elsewhere, in Singapore specifically, the real estate market experienced a 16.3% sales surge in August 2021.
💡It never hurts to explore your options in real estate
Ghost month or not, there’s nothing wrong with seeing what the market has to offer. Or, even bookmarking them on your device for future reference.
At Real.ph, you can view updated real estate listings in the Philippines. You can filter based on amenities, floor area, price, property type, number of beds and baths, and more.
With a free account, you can save your favorite listings as well. Signing up is easy and free so consider creating a Real.ph account. Explore listings of houses and condos for sale in the Philippines today.
Real estate tips for buyers, sellers during Ghost Month
Whether or not you believe in Ghost Month, here are some helpful tips to remember if you’re buying/selling real estate now — or in future Ghost Months to come.
For buyers:
- Less competition can be good. If most would-be buyers in a particular area are waiting for Ghost Month to subside, you’ll have more opportunities to find the right property without stiff competition.
- Pay extra attention to location. Although location is a key deciding factor regardless of the time of the year, Ghost Month (which falls on the rainy season) can also help reveal how flood or disaster prone a neighborhood is.
- Don’t get carried away by emotions. Real estate is one of the biggest transactions you’ll make. It’s natural to feel the highs and lows, but don’t let it affect your decision-making. The extra calm and patience advocated by Ghost Month believers will serve you well in the long run.
For sellers:
- Potential for higher returns. In a relatively quiet local market, buyers may be willing to pay more for the property you're selling. Check who else is selling in your area and do some pricing research to find the best ROI.
- Check your feng shui. Spatial arrangement and balance are especially top of mind during Ghost Month. If you’re dealing with buyers who value feng shui, consider highlighting the perks of your property location. Additionally, make furniture adjustments and property improvements accordingly.
- Pay extra attention to property conditions. It goes without saying that a well-maintained property increases your chances of attracting buyers. But the wet season (with the accompanying gloomy skies) can make it difficult to present your home in the best light. So make sure to make necessary improvements before showing a potential buyer around the property.
Ghost Month is what you make out of it
Ghost Month may or may not have an impact on your real estate experience. What matters is how you interpret it and the prevailing trends that can go in your favor.
As for me, there may be something here at play. Remember my parking lot lease every August?
In the last two years, there’s always been some basic typos (usually with my first name) and minor info oversight on the finalized contract. This year, I forgot to order a new checkbook before signing the lease. Fortunately, these issues have never resulted in major headaches — which I credit in large part to my good relationship with the landlord. Perhaps some friendly spirits are looking out for me? Who knows.
Maybe I should review my feng shui next August. Or I should just make sure all the i’s are dotted and all the t’s are crossed.
