Assessing industrial heritage value: an empirical exploration using the hedonic price model

Purpose – The conservation of historical buildings, including industrial architectural heritage, plays a pivotal role in fostering sustainable urban development, encompassing the preservation of architectural heritage, cultural growth and economic expansion. This study delves into the economic factors influencing the conservation of industrial architectural heritage within Hong Kong’s context, examining its implications in promoting sustainable architectural practices and urban revitalization. Design/methodology/approach – The study utilizes the hedonic pricing model to analyze the impact of intrinsic heritage attributes and extrinsic urban environmental characteristics on transaction prices. The analysis amalgamates various factors, including architectural values, and location-specific amenities factors, to provide an insightful understanding of industrial heritage conservation and the management of cultural-historical significance. Findings – A thorough examination of 30, 350 property transaction records spanning from 2009 to 2023 across 26 sub-districts in Hong Kong unveils the multifaceted relationship between industrial heritage preservation and diverse sustainability aspects, such as economic, environmental, social, architectural and cultural dimensions. The findings emphasize the importance of considering these interrelated factors when devising strategies for the effective management and conservation of industrial architectural heritage. Originality/value – This study contributes to the growing body of literature on cultural heritage management and sustainable development by offering a novel perspective on the interrelation between industrial architectural heritage conservation and multiple facets of cultural heritage management in Hong Kong. By employing the hedonic price model, this research uncovers the intricate connections between economic factors and heritage conservation, enriching the existing body of knowledge within the Journal of Cultural Heritage Management and Sustainable Development.