An empirical study on the economic factors of the architectural industrial heritage of Hong Kong via the hedonic pricing model

Abstract

The conservation of historical buildings is essential for safeguarding architectural heritage, facilitating urban development, and promoting sustainable economic growth. This research investigates the adaptive reuse of industrial architectural heritage in Hong Kong, focusing on its sustainable contributions to architectural practice and urban redevelopment. Employing the hedonic pricing model, this study quantitatively analyses the impact of industrial heritage conservation on property prices, revealing its significant contributions to imperatives with economic and developmental goals. Positioning Hong Kong as a paradigmatic example, this study uses a comprehensive analysis of 34,892 property transaction records collected from January 2010 to September 2022 across 23 subdistricts and offers critical insights into the challenges and opportunities of safeguarding industrial heritage within dynamic high-density urban landscapes. The findings indicate that approximately 75% of the variability in industrial property prices can be attributed to significant variables at the 1% confidence level. Key architectural parameters, including gross floor area (GFA), age, and floor level, demonstrate nonlinear relationships with industrial buildings designated for heritage conservation. The data suggest that industrial properties with a GFA of up to 10,989 square feet and an age of up to 41.5 years are considered best for preserving heritage values. Other urban planning parameters, such as the provisions of car parks and proximity to public transportation interchanges, also have significant positive external impacts on industrial property prices. These findings provide empirical evidence regarding the influence of heritage conservation on industrial property prices, serving as a valuable resource for policy-makers aiming to promote sustainable urban development and effective resource allocation. By integrating heritage conservation into urban planning strategies, this research underscores the vital role that preserved industrial heritage can play in fostering vibrant, sustainable urban environments.