The celebrity effect is like a double-edged sword, reflecting both brilliant social value and potential risks. Its dual impact needs to be examined dialectically. While the celebrity effect acts as a catalyst for social vitality, its negative aspects cannot be ignored; it is essentially a double-edged sword of the attention economy.
I. The Positive Driving Effect of the Celebrity Effect
(1) Enhancing Popularity and Attractiveness
Case Study: After inviting Jackie Chan to be its spokesperson, a Hangzhou real estate project quickly attracted media and public attention with its high-profile helicopter appearance and top-tier interior design, trending on social media and attracting a large number of potential homebuyers. The investments in luxury homes by Hong Kong celebrities like Joey Yung and Gigi Lai are also frequently amplified by the media, indirectly increasing the exposure of local real estate projects. Data Support: Byron Bay, due to the presence of celebrities like Chris Hemsworth, saw its property prices surge from AUD 7 million in 2014 to AUD 60 million in 2025, an increase of over 700%. Hong Kong’s Mid-Levels luxury residential area, also due to the concentration of celebrities, has consistently maintained high property prices; for example, Gigi Lai’s properties are valued at over HKD 1.1 billion.
(2) Driving Property Price Increases and Regional Value Enhancement
Regional Effect: Areas where celebrities reside or invest often form a “celebrity effect circle,” attracting fans, investors, and media attention, thus driving up property prices. For example, areas like Sydney’s eastern suburbs and Brighton, Melbourne, have seen significant price increases due to the concentration of celebrities; Hong Kong’s celebrity neighborhoods saw a year-on-year price increase of 8.09%, with some high-end properties exhibiting significant premiums due to celebrity association.
Psychological Driver: Homebuyers believe that living in the same area as celebrities can enhance their social status, creating a psychological premium associated with “celebrity neighbors.” For instance, some streets in Sydney’s eastern suburbs have higher property prices than other areas due to celebrity residences.
(3) Promoting Sales and Investment Conversion
Short-term Sales Stimulus: Celebrity endorsements or events can quickly attract crowds. For example, after a Yangzhou real estate project invited Chen Luyu, the event attracted huge crowds, significantly boosting sales. In Zhengzhou, celebrity events attracted large numbers of onlookers, increasing project awareness in the short term.
Long-term Brand Value: High-end projects cultivate a luxurious image through celebrity endorsements. For example, Shanghai Shimao invited Lee Min-ho, and Sanya Phoenix Water City had Zhang Ziyi as its spokesperson, leveraging celebrity influence to strengthen the brand’s high-end positioning and attract high-net-worth clients.
II. Limitations and Potential Risks of the Celebrity Effect
(1) Short-term Effect and Long-term Dependence Risk
Falling Popularity: The celebrity effect is mostly driven by short-term traffic. If the project itself lacks core competitiveness (such as location, amenities, and quality), it may face sluggish sales after the initial hype fades. For example, although the Hangzhou real estate project endorsed by Jackie Chan had high initial exposure, sales did not meet expectations due to issues such as commercial office conversion and poor comfort on lower floors. High Costs: Celebrity endorsement fees are exorbitant (e.g., Jackie Chan’s endorsement fee reached 20.6 million yuan). If the project’s return on investment is not commensurate, it may increase the developer’s financial pressure.
(2) Negative Cases and Brand Risks
Quality Issues and Backlash: If a celebrity endorsement is disconnected from the project’s quality, it may trigger negative effects. For example, the Beijing NAGA Upper House, endorsed by Jackie Chan, had its properties seized due to the developer’s debt disputes; a Xi’an property development had quality issues, and the endorser, Simon Yam, was implicated during the owners’ rights protection efforts.
Image-Related Risks: Negative news about celebrities (such as legal disputes and public opinion controversies) may affect the project. For example, the Sanya project endorsed by Zhang Ziyi was indirectly affected by the developer’s involvement in a corruption case.
(3) Market Differentiation and Regional Differences
Differences between Core and Non-Core Areas: In first-tier cities, the celebrity effect is more significant in core areas due to resource scarcity; in emerging markets or non-core areas, the celebrity effect may be limited due to oversupply and insufficient demand. For example, the return on investment for apartments in the core area of Phnom Penh, Cambodia, exceeds 7%, but in non-core areas, oversupply may lead to a decline in housing prices. Impact of Policy and Economic Environment: High interest rates, purchase restrictions (such as Texas’s ban on land purchases by Chinese, Russian, Iranian, and North Korean companies), and increases in foreign investment taxes may weaken the celebrity effect. For example, Australia’s ban on foreign investment in second-hand homes until 2027 limits overseas housing demand driven by celebrity investment.
III. Expert Opinions and Industry Recommendations
(1) Rational Use of Celebrity Effect
Matching Project Positioning: Celebrity selection should align with the project’s image. For example, high-end luxury homes are suitable for mature, highly educated celebrities, while youthful projects are suitable for popular artists. The Yangzhou case illustrates that celebrity endorsements should be combined with product strength to avoid prioritizing popularity over quality.
Long-Term Brand Building: The celebrity effect should be used as a supplementary means of brand building; the core should still return to the product itself. For example, Hong Kong developers enhance project image through celebrity property viewings, but ultimately rely on substantial advantages such as location and amenities.
(2) Risk Control and Compliance
Law and Compliance: Attention should be paid to policy restrictions in various countries (such as FIRRMA review in the US and FIRB approval in Australia) to avoid investing in sensitive areas. Simultaneously, celebrity endorsements must comply with advertising regulations to avoid false advertising. Market Research and Due Diligence: In-depth market research is necessary before investment to assess regional supply and demand, policy risks, and property rights clarity. For example, in Southeast Asia and Africa, caution is needed regarding low legal transparency and oversupply risks.
(3) Diversified Strategy Combination
Combined Marketing: Integrate celebrity influence with cultural marketing and cross-industry collaborations, such as hosting celebrity meet-and-greets and themed parties to enhance project value. Simultaneously, utilize social media and digital tools to expand dissemination.
Long-Term Value Investment: Celebrity influence should serve long-term asset appreciation, not short-term speculation. For example, Hong Kong celebrities often invest in luxury homes based on long-term needs such as asset allocation and children’s education, rather than pure speculation.
It is important to note that celebrity influence has a dual nature in real estate development: in high-quality projects, core areas, or specific market conditions, it can significantly enhance brand awareness, attract investment, and drive up housing prices; however, over-reliance, poor project quality, or unfavorable market conditions can lead to negative effects. Its effectiveness depends on the project’s quality, market environment, policy regulation, and the match between the celebrity and the project. Therefore, developers need to rationally utilize the celebrity effect and combine it with substantive factors (such as location, amenities, and quality) to achieve sustainable development, while paying attention to risk control and compliance to avoid potential risks brought about by short-term speculation.
