Building management and maintenance has gained its importance after a
series of disastrous building-related incidents in Hong Kong. To facilitate
the management of an apartment building, homeowners usually form an
owners ’ association among themselves and / or appoint an external property
management agent (PMA) to manage the building on their behalf. Empirical
studies found that the involvement of these bodies was conducive to a
better-performing built environment, and that premium was added to betterperforming
properties. Yet, these studies often took the formation of owners ’
association and engagement of external PMA in a building as dichotomous
variables in exploratory models, and thus ignored the variations in the adopted
building management practices in different buildings even with the same
building management setting. Making use of the data collected from two
previous research projects, a hedonic price analysis was carried out to study
whether specifi c building management practices added value to the properties
concerned. The analysis results indicated that properties in buildings with good
documentations (eg keeping of as-built architectural drawings and incident
records), thoughtful emergency planning (eg presence of emergency plan
and regular fi re drills) and property-all-risk insurance coverage were sold at a
premium, ceteris paribus . Policy and practical implications then follow

• The effects of building management practices on residential property prices in Hong Kong