Eddie C.M. Hui

Forecasting cargo growth and regional role of the port of Hong Kong

Abstract The port of Hong Kong is a critical component of both the city’s and the region’s economy. However, forecasts of cargo growth and development of the port of Hong Kong have been scarce and the findings conflict, while systematic treatments on the subject are rare. This paper predicts cargo growth and the development of the port of Hong Kong by means of regression analysis. Factors affecting cargo throughput in Hong Kong are identified, qualitatively evaluated and then entered into a forecast model that generates a projection of cargo throughput. Based on the cargo throughput forecast, and an assessment of the Pearl River Delta (the hinterland of the port), the future role of the port is postulated. Further, the current cargo forecast is compared to the official forecast by the Port and Maritime Board, on which policy decisions are based.

Measuring customer satisfaction of FM service in housing sector: A structural equation model approach

Purpose – The purpose of this paper is to identify and analyze crucial variables of customer satisfaction towards residential facility management (FM) service, and to enable FM companies to deliver high quality services.Design/methodology/approach – The research is based on a survey of customer satisfaction of one residential property in Hong Kong. FM service is divided into two interrelated clusters which are denoted by two latent variables, and then a specific structural equation model is developed for identifying and quantifying the influence of service and management quality on customer satisfaction and clarifying the causal relationships between these latent and observed variables.Findings – The research reveals that: both service and management quality have significant positive effect on customer satisfaction, and the effect of service quality is larger than that of management quality when the indirect effect is taken into account; service quality is a crucial latent variable influencing customer sa...

Does the planning system affect housing prices? Theory and with evidence from Hong Kong

Abstract Hong Kong has been faced with property market ups and downs for many reasons over the past 10 years or so. It once experienced shortages of housing supply, leading to prolonged escalating prices. This was followed by a downturn of housing prices since the end of 1997 and in the wake of the financial turmoil in Asia. Hong Kong people have been very concerned with the housing market situation, particularly housing prices, and consider that the problem needs to be addressed to prevent its recurrence in the future. The Hong Kong government uses its land-use planning system to address this “market failure”. Also, such a system imposes constraints on land supply and development, through various means by altering the supply of housing land. As a result, the residential property has been affected, and so is the housing price. This paper attempts to explore the impact of the land-use planning system (and land supply) on housing prices in the territory. It starts with the preliminary introduction of the planning system and a review on the previous literature on the impact of land-use planning system on housing prices in Hong Kong. An analytical model is established, followed by the discussion of the empirical findings of the impacts of the land-use regulation on land supply, housing supply and housing prices in the territory. The results in Section 7 show that the planning indicators: (i) the approval rates of planning applications; (ii) the residential floor area under planning applications; and (iii) the area of greenbelt and open space zones, have significant impact on housing prices.

Evaluation approach on public‐private partnership (PPP) urban redevelopments

Urban redevelopments in recent years tend to follow a pragmatic market‐led partnership approach with involvement of both public and private sectors. However, it has been evidenced that this approach suffers from a number of deficiencies. These include over‐reliance on private investments which make the project vulnerable to financial risks and over‐emphases on creating a place of opportunity rather than improving the social environment in the deprived areas. This paper proposes an approach encompassing Cost‐Benefit Analysis (CBA) and Option Pricing concepts (OP) into urban renewal projects which is considered more appropriate for urban redevelopment appraisal. The approach is applied for appraising the bust‐boom saga of the London Docklands redevelopment to demonstrate the importance of the inclusion of social costs and benefits in the evaluation and the strategic value of operating options. Furthermore, key factors for an urban redevelopment project are also identified from the analyses which are considered crucial for the success of the project. Urbanistiniai pertvarkymai pastaraisiais metais dažniausiai vykdomi laikantis pragmatine rinka pagristos partnerystes nuostatos, būdingos tiek viesiesiems, tiek privatiems sektoriams. Taciau buvo irodyta, kad sis būdas turi nemažai trūkumu. Tai susije su pernelyg dideliu pasitikejimu privaciomis investicijomis, del kuriu projektas susiduria su finansine rizika, bei pernelyg pabrežiamu galimybiu sukūrimu, o ne socialines aplinkos pagerinimu skurdžiuose kvartaluose. Siame darbe siūloma i urbanistinius atnaujinimo projektus itraukti kastu ir naudos analize (CBA) bei pasirinkciu kainodaros (OP) metodika, kuri laikoma tinkamesne urbanistiniams pertvarkymams ivertinti. Si metodika taikoma Londono doku pertvarkymams vertinti, norint parodyti socialiniu kastu bei naudos itraukimo i vertinima svarba bei strategine valdymo pasirinkciu verte. Be to, pagrindiniai veiksniai urbanistiniu pertvarkymu projekte taip pat nustatomi analizes, turincios esmine itaka projekto sekmei, metodu.

A review of the effectiveness of urban renewal in Hong Kong

Purpose – The purpose of this paper is to examine the progress of rehabilitation and redevelopment and review the effectiveness of the Land (Compulsory Sale for Redevelopment) Ordinance (LCSRO) (Cap. 545) and proposals that influence the urban renewal process in Hong Kong.Design/methodology/approach – The study largely relies on the review of the LCSRO and the Governments proposal, and the urban renewal progress. Rehabilitation and redevelopment data was collated and analyzed to assess how effective the renewal process and the Government legislation have been in tackling the urban decay problem in Hong Kong. This study benchmarks the good practices of Singapore.Findings – The pace of urban renewal activities in Hong Kong is lagging behind its policy goal. The implementation of the urban renewal programme has not adequately resolved the serious problem of ageing buildings. The existing legislation has not been effectively attracting private sectors participation either. The proposed relaxation of the com...

A fuzzy decision‐making approach for portfolio management with direct real estate investment

This study incorporated expert knowledge into the classical quadratic programming approach, i.e., Modern Portfolio Theory (MPT), through fuzzy set theory; in obtaining portfolio return optimization involving direct real estate investment. Two fuzzy mathematical programming models were uniquely specified and estimated in this study, namely, Zimmer-manns (2001) fuzzy tactical asset allocation (FTAA) flexible programming model and Ramik and Rimaneks (1985) FTAA robust programming model. These approaches try to overcome the drawbacks of traditional asset allocation models by including expert adjustment in the presence of imprecise information. The findings suggest that the fuzzy tactical asset allocation (FTAA Flexible Model), with the inclusion of expert judgments which contain information usually not found in historical data, is able to produce a portfolio just as efficient as traditional asset allocation models while minimizing the potential issues due to imprecision and vagueness of information. Meanwhile, the FTAA Robust Model proffers a more evenly-distributed, yet with higher risks and lower returns, portfolio. Aside from the lack of emphasis on portfolio risks minimization, one reason attributed to such anomaly is the low level of returns of high-risk stocks that are not selected by MPT and FTAA Flexible Models. It results in a unique situation where portfolio diversification does not necessarily guarantee an efficient investment decision.

Facilities management service and customer satisfaction in shopping mall sector

Purpose – The purpose of this paper is to identify and analyze crucial facilities management (FM) service dimensions that affect customer satisfaction with regards to the shopping mall sector, and provide useful implications for FM companies.Design/methodology/approach – The study is based on a five‐year longitudinal customer satisfaction survey conducted in five selected shopping malls in Hong Kong. The authors first use stepwise multiple regression method to estimate the relationship between overall customer satisfaction level and nine specific dimensions of FM service for each year, and then compare regression results of five years to identify crucial dimensions.Findings – The research reveals that: management and maintenance of communal facilities is the most crucial dimension with regard to the overall customer satisfaction; the condition of a washroom is another important dimension for customer satisfaction; communication efficiency and efficacious promotion events are also important for maintaining...

Housing price bubbles in Beijing and Shanghai

Purpose – This study investigates whether there was a housing price bubble in Beijing and Shanghai in 2003. The existence of a bubble can be interpreted from (abnormal) interactions between housing prices and market fundamentals.Design/methodology/approach – With monthly data from the two cities, this paper employs standard econometric methodologies: i.e. Granger causality tests and generalized impulse response analysis, and the reduced form of housing price determinants.Findings – Our findings suggest that there appeared a bubble in Shanghai in 2003, accounting for 22 percent of the housing price. By contrast, Beijing had no sign of a bubble in the same year. The bubble phenomenon, of course, should not be taken without caution for the constraints of data. Nonetheless, this study has laid the ground work for further investigation into abnormal housing price phenomena in Mainland China.Originality/value – Our findings may help foreign investors better understand the Chinese housing markets and make better...

An empirical study of the effects of land supply and lease conditions on the housing market

The aim of this research is to investigate the effects of land supply (LS) and lease conditions on the housing market. It tests whether there exists a relationship: between LS and housing price, between development conditions in government land leases and housing supply, and to what extent these development conditions affect Hong Kongs supply, of private residential flats. This paper focuses on examining the supply side of private housing in Hong Kong, whilst limiting the investigation on how LS and development conditions affect the supply of the private residential property market. The findings of this study bring additional knowledge on a different form of government control over the land market. First, an overview of Hong Kongs housing supply situation is presented. An understanding of Hong Kongs housing situation generates an underlying rationale for this study. In order to understand Hong Kongs land tenure system, Section 2 provides a brief background of the establishment of Hong Kongs leasehold tenure system. Section 3 develops the research framework within which to provide a global synopsis of literature (relating to the effects of leasehold land tenure system, governmental land regulation, development/land use control, and restricted LS on the housing market) and theoretical models for the analysis of LS and lease conditions. Following the analysis of findings, the concluding section presents recommendations for policy change.

Land value capture mechanisms in Hong Kong and Singapore

Hong Kong and Singapore are characterized by rapid economic development and a high population density of 6,250 and 6,055 per km2 land respectively. Land revenue is their major source of income to finance their public infrastructure and social services. Their design and collection of taxes on land, their value‐capture instruments and their allocation of revenue for public works are examined. The article finds that there are some similarities between the two cities in capturing land value, such as the collection of annual rates and stamp duty on property. The differences include the adoption of property tax surcharge and the development charge. In fact, each mechanism has its pros and cons. The method and the extent of each mechanism depend on the goals of the government in respect of the social and economic conditions.