Economic sustainability of heritage conservation in Hong Kong: The impact of heritage buildings on adjacent property prices

Abstract

Informed by the theoretical framework of sustainable development and economic theories including the cluster theory and the corollary of the Coase Theorem, this paper empirically investigates the economic impact of architectural heritage in Hong Kong. Using the hedonic price model, the research examines the economic impact of 50 publicly owned versus 50 privately owned heritage buildings on adjacent residential property prices with a sample size of over 43,240 property transaction records spanning a time period of 10 years. The research supports that heritage conservation can promote economic sustainability aside from cultural sustainability and social engagement. This research benefits government policymakers, urban planners, architects, and heritage conservationists by contributing new knowledge to the studies on sustainable urban development, heritage conservation, and cultural economics.