Effect of property management on property price: a case study in HK Eddie Chi-Man Hui, Hoi Ting Lau and Tareef Hayat Khan Department of Building and Real Estate, Hong Kong Polytechnic University, Kowloon, Hong Kong Abstract Purpose – It has been said that people’s expectation towards their living space has been increased. They have a higher requirement not only for the facilities it provides, but also for the quality of property management services. Property management is now regarded as one of the important considerations of buyers in purchasing a property. This research paper aims to investigate the significance of the quality of property management to property buyers. Design/methodology/approach – ISO 9001 Certification and HKMA Quality Award (HKMAQA) are used as the measurement of the quality of property management. The paper used a hedonic price model to determine whether there is a relationship between property management and property price and the inference of property management on property price if there is such relationship. Seven private residential estates in Ma On Shan with similar locational characteristics were selected in the research. Findings – The empirical results show that property management has a significant and positive relationship with property prices. People are willing to pay 4.92 percent and 2.84 percent more on properties managed by a property management company that is ISO 9001-certified and HKMAQA winner respectively. Research limitations/implications – The implications of the results imply that well-recognized property management increases the value of a property and attracts second-hand property buyers, and quality property management adds value to properties and hence increases the property price. Originality/value – The research has contributed an indication of the amount a household would be willing to pay on quality property management services as a reference for investors, users, developers and property management services providers. Keywords Property management, Property value, Property price, ISO 9000 series, HKMAQA, Hong Kong, Quality awards, Pricing Paper type Research paper 1. Introduction According to Hong Kong Trade Development Council (HKTDC, 2010), there are 528 property management companies (PMCs) in HK as at 2009, that offer a wide range of services. According to Hong Kong Association of Property Management Companies (HKAPMC, 2010), there are 87 members registered to this institute[1]. However, Hong Kong (HK) government still has no licensing systems for PMCs, and currently the quality of the PMCs is not monitored by the government. PMCs voluntarily look for quality awards or certificates in order to get greater recognition. Currently there are two professional bodies offering such awards: The current issue and full text archive of this journal is available at www.emeraldinsight.com/0263-2772.htm The authors are grateful to the anonymous reviewers for their valuable comments. The study is partially funded by the PolyU research funding accounts: 1-ZV1X and G-YH86. Effect of property management 459 Facilities Vol. 29 No. 11/12, 2011 pp. 459-471 q Emerald Group Publishing Limited 0263-2772 DOI 10.1108/02632771111157132