Assembly or Subdivision? Comparative Institutional Analysis of Culture-Led Urban Regeneration Projects from Xi’an, China

Culture-led urban regeneration represents a potent strategy for revitalizing post-industrial cities but necessitates navigating complex property rights fragmentation and competing stakeholder interests. This research interrogates how different institutional arrangements mediate this process, balancing economic development with cultural preservation and social sustainability. Through a comparative case study of two seminal projects in Xi’an, China—the Yisu Opera Society and the Old Food Market—this paper examines the divergent outcomes of two property rights reconfiguration strategies: land assembly and rights subdivision. Findings reveal a fundamental trade-off: while the land assembly model facilitates efficient, large-scale redevelopment and economic revitalization, it often precipitates gentrification and the erosion of socio-cultural fabric. Conversely, the rights subdivision approach, though incurring higher ongoing transaction costs, fosters more equitable and embedded regeneration by preserving community networks and authentic character. Grounded in Property Rights and Transaction Cost theories, this study con-structs an analytical framework to evaluate how governance structures, stakeholder dynamics, and contextual factors shape project outcomes. The research concludes that there is no universal solution; the optimal pathway depends on the specific heritage context and social embeddedness of a site. It contributes to urban scholarship by highlighting the critical role of flexible, hybrid governance models in managing urban complexity and offers practical policy insights for designing regeneration frameworks that can more equitably distribute the benefits of urban development.