An empirical study of the impact of temple on neighbouring residential property price in Hong Kong

Abstract

This dissertation investigates the impact of temple on neighbouring residential property price in Hong Kong. Temple has been an integral part of Hong Kong cultural heritage, considering its cultural and social significance. However, despite the vast number and great importance of temples in Hong Kong, there is limited research conducted on the economic implications they carry. In light of this, this research hopes to deepen reader’s understanding of how Chinese historical and religious landmarks affect the property market. Understanding the impact of Chinese religious heritage on the property market can provide valuable insights for zoning practice, preservation, environmental considerations, and economic development in Hong Kong. This research utilizes the Hedonic Price Model to analyse a dataset of residential property transactions in the neighbourhood of declared temples in Hong Kong. A total of six temples and their neighbouring property spreading across New Territories, Kowloon, and Hong Kong Island are investigated. The empirical findings reveal that temple in general has a negative impact on neighbouring property price. When the distance from the temple increases by one meter, there is a 0.03% increase in property price. While the magnitude of this impact is relatively small, it suggests that temples are adversely affect the environment of their surrounding neighbourhood, potentially due to factors such as smoke emissions from the burning of incense and joss papers, etc. Specifically, the presence of a semi-enclosed temple in a neighbourhood will result in a notable decrease of 7.11% in property price. However, the magnitude of this impact will gradually diminish as the distance between the temple and the property increases. In contrast, popular and larger temples have a positive impact on neighbouring property prices. This can be attributed to the social value, amenity value and locational characteristics associated with popular temples, as well as the potential economic benefits they bring along. The results indicate that popular temples offer a premium of 7.12% in property prices. The findings of this research have important implications for stakeholders responsible for temple maintenance and enhancement. Policymakers can re-evaluate their current temple conservation strategies and redesign a balanced approach that consider both cultural heritage and economic development under the sustainability initiative. Measures such as zoning practices, development plans, and management strategies should be implemented to maximize the economic potential of temples while mitigating their negative impact on nearby residents. This research addresses a gap about the extent to which heritage sites, such as temples, may influence neighbouring property prices. Existing literature has conflicting views on this topic, but this research reveals that, in general, temples have a negative impact on the housing market, except for popular temples with high heritage value. Investors and homebuyers are also benefited from this research. They can avoid properties near semi-enclosed temples but choose areas with popular temples to secure property value, subsequently gaining more profit in the real estate market. Similarly, for developers, they may avoid acquiring land adjacent to temples, particularly semi-enclosed temples. Instead, developers should consider targeting land near popular temples, as these properties are expected to have higher value and greater demand.