An empirical study of the effects of industrial building revitalization on nearby residential housing prices : three cases in Hong Kong

Abstract

The aim of this study is to investigate the relationship between industrial building revitalization and nearby residential housing prices. This paper elaborates on differentiating the use of different industrial building revitalization. Case studies regarding the selected revitalized industrial building are conducted. The nature and characteristics of the revitalized building and its nearby neighborhood is investigated in deep. Hypothesis is then developed to predict the relationship between revitalization and nearby residential housing properties. Followed by regression analysis adopted to evaluate the hypothesis established by utilizing the transaction data of the nearby residential housing estates. The result of Hedonic Price Model generated is then validated, explained and elaborated for further implications. Two hypotheses are developed. Hypothesis 1 is that Proximity to revitalized industrial buildings would bring higher value to the nearby residential properties. Hypothesis 2 is that higher culture/creativity and history-related revitalized industrial building would bring greater value to the nearby residential properties. To respond the hypothesis more comprehensively, case studies regarding industrial building revitalization are conducted. The gap of quantitative research in this study is filled in by qualitative research. Case Studies shows the difference of revitalization in nature and characteristic. There are three cases in total: The Mills shows the characteristics of cultural/creativity promotion and history preservation, D2 Place shows the characteristics of cultural/creativity promotion and Eastmark shows no special features as an ordinary commercial building. Quantitative research approach is then adopted and hedonic price models are utilized to generate 3 models regarding each of the revitalization case selected. By utilizing the results, significant positive impact towards property prices is found in the case of The Mills and D2 Place. No significant impact can be found in the case of Eastmark. Therefore, hypothesis 1 is partially valid. Additionally, by comparing the impact made among cases in the study, it is observed that the positive impact made by The Mills and D2 Place is similar in magnitude. Eastmark made the least significant impact. Therefore, hypothesis 2 is partially valid.