In addition to the hedonic regression method, a second tool which is spatial autocorrelation analysis is used to determine the spatial influence on the transaction price of heritage properties. The analysis of transaction prices for properties in the heritage areas of George Town showed that attributes related to heritage or conservation is found to have a positive impact on property value in George Town. The spatial autocorrelation analysis returns a positive but weak spatial relationship between the data indicating that location has an impact on the property value but not as strong as it is widely believed. Other than property attributes and location, this paper also discusses the impact of heritage related development policies on property value. The study shows that the implementation of heritage conservation policies encourages the demand for heritage buildings while unclear policies confuse investors causing a reduction in the transaction of heritage properties. The findings in this paper indicates that "heritage" status have a positive impact on property value and being a niche market, the value and transactions are not easily influenced by the economic cycle. As such, property conservation could be utilised as a development strategy especially for a heritage city.
Keywords: Heritage properties, Hedonic regression analysis, property values, Heritage related policies, George Town
Ms. Sr Lim Yoke Mui
School of Housing, Building and Planning, University Sains Malaysia, Kuala Lumpur
|Lim_Urban Conservation of George Town.pdf||4.09 MB|