Sustainable Development as A Win–Win Development: A Hong Kong Empirical Study of the Tai Kwun Heritage Project

ABSTRACT This empirical study of the value‐enhancing effects of a new innovative hub for art, culture, and heritage experiences (arts hub) reusing the heritage buildings of an old prison, an ex‐police station cum detention centre called “Tai Kwun” (Big Station), on neighboring residential properties, treats sustainable development as a developmental process to achieve a “win–win” production of two originally mutually exclusive environmental goods by transforming negative externalities into positive ones, as encapsulated in Yu's model. The study demonstrates the win–win idea from a neo‐institutional economic perspective. The empirical results of a regression analysis, based on a total of 1541 sets of transaction records of residential units in the vicinity of Tai Kwun transacted between January 1993 to December 2023, showed that the hub was a win–win solution for heritage conservation and residential development.