IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v91y2020ics0264837719315443.html
   My bibliography  Save this article

What is the value of built heritage conservation? Assessing spillover effects of conserving historic sites in Singapore

Author

Listed:
  • Tan, Shin Bin
  • Ti, Edward S.W.

Abstract

Quantifying the economic benefits of built heritage facilitates the formulation and assessment of conservation policies and programs. There is however a lack of empirical research about the economic value of built heritage in Asian cities. This lack is problematic, given the rapid pace of demolition and redevelopment of historic landscapes in Asian cities. This study seeks to reduce the current gap in built heritage research by examining whether real estate premiums are generated by the designation of buildings as ‘conserved’ in Singapore, a city-state in South East Asia. Using 20 years of housing transaction data, and controlling for building, neighborhood and year fixed effects, we found that conservation designation had a positive impact on average sale prices per square meter of built area that was largest at residential locations between 800 m to 1.6 km from the conserved site. Findings also suggest that lower-cost public housing resale units gained a substantially smaller premium compared to private housing units. While our findings suggest an economic justification for building conservation programs in Asian cities, they also raise questions about such programs potential impact on neighborhood gentrification, and the need for appropriate taxation policies to ensure horizontal equity between property owners.

Suggested Citation

  • Tan, Shin Bin & Ti, Edward S.W., 2020. "What is the value of built heritage conservation? Assessing spillover effects of conserving historic sites in Singapore," Land Use Policy, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:lauspo:v:91:y:2020:i:c:s0264837719315443
    DOI: 10.1016/j.landusepol.2019.104393
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719315443
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2019.104393?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kelly L. Kinahan, 2019. "The Neighborhood Effects of Federal Historic Tax Credits in Six Legacy Cities," Housing Policy Debate, Taylor & Francis Journals, vol. 29(1), pages 166-180, January.
    2. Douglas S. Noonan, 2007. "Finding an Impact of Preservation Policies: Price Effects of Historic Landmarks on Attached Homes in Chicago, 1990-1999," Economic Development Quarterly, , vol. 21(1), pages 17-33, February.
    3. Baltagi, Badi H. & Li, Jing, 2015. "Cointegration of matched home purchases and rental price indexes — Evidence from Singapore," Regional Science and Urban Economics, Elsevier, vol. 55(C), pages 80-88.
    4. Christiane Krieger-Boden, 2002. "EMU and the Industrial Specialisation of European Regions," Advances in Spatial Science, in: Juan R. Cuadrado-Roura & Martí Parellada (ed.), Regional Convergence in the European Union, chapter 4, pages 77-94, Springer.
    5. David E. Clark & William E. Herrin, 1997. "Historical Preservation Districts and Home Sale Prices: Evidence from the Sacramento Housing Market," The Review of Regional Studies, Southern Regional Science Association, vol. 27(1), pages 29-48, Summer.
    6. Murakami, Jin, 2018. "The Government Land Sales programme and developers’ willingness to pay for accessibility in Singapore, 1990–2015," Land Use Policy, Elsevier, vol. 75(C), pages 292-302.
    7. Brian J. McCabe, 2019. "Protecting Neighborhoods or Priming Them for Gentrification? Historic Preservation, Housing, and Neighborhood Change," Housing Policy Debate, Taylor & Francis Journals, vol. 29(1), pages 181-183, January.
    8. Iain Begg & David Mayes, 2000. "GUEST EDITORIAL: Decentralized Industrial Policy," European Planning Studies, Taylor & Francis Journals, vol. 8(2), pages 149-156, April.
    9. Coulson, N Edward & Leichenko, Robin M, 2001. "The Internal and External Impact of Historical Designation on Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 23(1), pages 113-124, July.
    10. Diao, Mi & Leonard, Delon & Sing, Tien Foo, 2017. "Spatial-difference-in-differences models for impact of new mass rapid transit line on private housing values," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 64-77.
    11. M A H Dempster & N Hicks Pedrón & E A Medova & J E Scott & A Sembos, 2000. "Planning logistics operations in the oil industry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(11), pages 1271-1288, November.
    12. Faroek Lazrak & Peter Nijkamp & Piet Rietveld & Jan Rouwendal, 2014. "The market value of cultural heritage in urban areas: an application of spatial hedonic pricing," Journal of Geographical Systems, Springer, vol. 16(1), pages 89-114, January.
    13. Wright, William C.C. & Eppink, Florian V., 2016. "Drivers of heritage value: A meta-analysis of monetary valuation studies of cultural heritage," Ecological Economics, Elsevier, vol. 130(C), pages 277-284.
    14. Brian J. McCabe & Ingrid Gould Ellen, 2016. "Does Preservation Accelerate Neighborhood Change? Examining the Impact of Historic Preservation in New York City," Journal of the American Planning Association, Taylor & Francis Journals, vol. 82(2), pages 134-146, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rachel Gallagher & Thomas Jason Sigler & Yan Liu, 2024. "Character contradiction: The exclusionary nature of preservationist planning restrictions," Urban Studies, Urban Studies Journal Limited, vol. 61(6), pages 1013-1030, May.
    2. Wang, Yongcheng & Yamaguchi, Keita & Wong, Yiik Diew, 2020. "The multivalent nexus of redevelopment and heritage conservation: A mixed-methods study of the site-level public consultation of urban development in Macao," Land Use Policy, Elsevier, vol. 99(C).
    3. Wei Feng & Wei Ding & Yingdi Yin & Qixian Lin & Meng Zheng & Miaomiao Fei, 2021. "Optimization Strategy of Traditional Block Form Based on Field Investigation—A Case Study of Xi’an Baxian’an, China," IJERPH, MDPI, vol. 18(20), pages 1-25, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Yang, 2021. "The political economy of historic districts: The private, the public, and the collective," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    2. Nguyet Thi Tran & Dirk Weichgrebe, 2020. "Regional material flow behaviors of agro‐food processing craft villages in Red River Delta, Vietnam," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 707-725, June.
    3. Apoorva Ghosh & Pranabesh Ray, 2012. "A Contemporary Model for Industrial Relations," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 37(1), pages 17-30, February.
    4. Gabriel M. Ahlfeldt & Wolfgang Maennig, 2010. "Substitutability and Complementarity of Urban Amenities: External Effects of Built Heritage in Berlin," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 285-323, June.
    5. Ka Shing Cheung & Chung Yim Yiu, 2022. "The economics of architectural aesthetics: Identifying price effect of urban ambiences by different house cohorts," Environment and Planning B, , vol. 49(6), pages 1741-1756, July.
    6. Tetsuharu Oba & Douglas Simpson Noonan, 2020. "The Price of Preserving Neighborhoods: The Unequal Impacts of Historic District Designation," Economic Development Quarterly, , vol. 34(4), pages 343-355, November.
    7. Gabriel M. Ahlfeldt, 2010. "Architektur, Ökonomie – Architekturökonomie," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(4), pages 340-355, November.
    8. Rickman, Dan S., 2009. "Neighborhood Historic Preservation Status and Housing Values in Oklahoma County, Oklahoma," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2), pages 1-10.
    9. Wadu Mesthrige Jayantha & Esther Hiu Kwan Yung, 2018. "Effect of Revitalisation of Historic Buildings on Retail Shop Values in Urban Renewal: An Empirical Analysis," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    10. Mario A. Fernandez & Shane L. Martin, 2020. "What’s so special about character?," Urban Studies, Urban Studies Journal Limited, vol. 57(16), pages 3236-3251, December.
    11. Douglas S. Noonan, 2013. "Market effects of historic preservation," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 17, pages i-i, Edward Elgar Publishing.
    12. Velma Zahirovic-Herbert & Karen Gibler, 2014. "Historic District Influence on House Prices and Marketing Duration," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 112-131, January.
    13. Raphael W. Bostic & Stanley D. Longhofer & Christian L. Redfearn, 2007. "Land Leverage: Decomposing Home Price Dynamics," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 35(2), pages 183-208, June.
    14. Sevrin Waights, 2019. "The preservation of historic districts—is it worth it?," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 433-464.
    15. Been, Vicki & Ellen, Ingrid Gould & Gedal, Michael & Glaeser, Edward & McCabe, Brian J., 2016. "Preserving history or restricting development? The heterogeneous effects of historic districts on local housing markets in New York City," Journal of Urban Economics, Elsevier, vol. 92(C), pages 16-30.
    16. Lucy Rossiter & Kai Gu, 2023. "The Impact of Special Character Areas on Property Values and Homeowners’ Experiences: Cases from Auckland, New Zealand," Land, MDPI, vol. 12(6), pages 1-16, June.
    17. N. Edward Coulson & Michael L. Lahr, 2005. "Gracing the Land of Elvis and Beale Street: Historic Designation and Property Values in Memphis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 33(3), pages 487-507, September.
    18. Christopher Coombs & Nikias Sarafoglou & William Crosby, 2012. "Property Taxation, Capitalization, and the Economic Implications of Raising Property Taxes," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 18(2), pages 151-161, May.
    19. Rosato, Paolo & Rotaris, Lucia & Breil, Margaretha & Zanatta, Valentina, 2008. "Do We Care about Built Cultural Heritage? The Empirical Evidence Based on the Veneto House Market," Sustainability Indicators and Environmental Valuation Working Papers 42917, Fondazione Eni Enrico Mattei (FEEM).
    20. Fátima Espinosa Casero & Luis César Herrero Prieto, 2024. "Valuing cultural heritage through non-monetary scales: A comparison," ACEI Working Paper Series AWP-02-2024, Association for Cultural Economics International.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:91:y:2020:i:c:s0264837719315443. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.