Wadu Mesthrige Jayantha

The Effects of Urban Redevelopment on Neighbourhood Housing Prices

The topic of neighbourhood improvement is central to residential appraisal. The study empirically investigates how the redevelopment affects the housing values in the vicinity. Using price gradient approach based on hedonic pricing model, we study the effects of an urban redevelopment project on housing property prices during the pre-redevelopment stage, construction stage and post-redevelopment stage. The results show that there were significant increases in property prices between before implementation and after completion of the redevelopment project. Property value enhancements well ahead of the actual project completion are also observed. It suggests that redevelopment has brought overall improvements to the surrounding properties and the expectation of these advantages was taken into consideration in the pricing of the properties during the construction phase. In addition, the changes in housing price gradients reveal that the effects of redevelopment varied with proximity between the properties and the redeveloped site. Properties which have the closest proximity with the redevelopment are found to have experienced greater increase in price after redevelopment but less extent of price rise during construction. It is important for urban planners to carefully consider the externalities of redevelopment received by properties in different locations, in order to maximize the positive impacts of redevelopment on the neighbourhood.

Effect of green labelling on residential property price : a case study in Hong Kong

Purpose – It is known that peoples expectation towards their living “green” is increasing. Green features are now regarded as one of the important considerations of buyers in purchasing a property. This research paper aims to investigate the significance of the green features of residential buildings to property buyers.Design/methodology/approach – HK‐BEAM certification and HK‐GBC Award are used as the measurement of green residential buildings. The study used a hedonic price model to determine whether there is a relationship between green features and residential property price and the influence of green features on the residential property price if there is such relationship.Findings – The empirical results show that green features have a significant and positive relationship with residential property price. People are willing to pay more for green buildings recognized by HK‐BEAM and HK‐GBC. They are willing to pay a sale price premium ranging from 3.4 percent to 6.4 percent. Furthermore, a relatively ...

Floor Space per Person and Housing Development: An Urban Growth Approach to Estimate Housing Supply in Hong Kong

This article estimates an empirical model of new housing supply in Hong Kong based on the urban growth approach. The article introduces a new factor, space usage per person (SPP), to this model reflecting the quality of housing, the demand and supply aspects of the housing market, along with prices and other standard variables. SPP may also be used as a human settlement development indicator. Empirical results provide strong evidence that the introduced new factor exerts a strong positive influence on new housing supply, and that even a marginal change in the space usage pattern would have a great impact on housing supply. This suggests that non-price measures too should receive priority when estimating future housing development needs. Empirical estimates also suggest that a 10 per cent rise in real house prices leads to a 0.6 per cent increase in new housing starts and twofold rise in real house prices would increase the entire housing stock by 6 per cent.

The Impact of a Rapidly Expanding Service Sector on Private Office Property: The Case of Hong Kong

Hong Kong’s economy has undergone a remarkable transformation over the past two decades. The rapid expansion of the service sector is a major outcome. Within the services sector, the finance, insurance, real estate (FIRE) and business services sub†sector is the most influential and also the major source of generating demand for office space in the economy. This paper examines how the rapid expansion of the FIRE and business service sub†sector influences new office construction. Using the Engle†Granger (1987) methodology for cointegration and error correction mechanism (ECM), the causal relationships between growth of sub†sectors of the services sector and the new office space construction were explored. The FIRE and business services sub†sector growth is shown to be cointegrated with new office space construction. The paper reports empirical findings based on a sample survey on location and quality of space. The study reveals that the growth of the FIRE and business service sector has influenced office space development in terms of location of space, per capita space and the type and quality space during 1981†2000.

The effect of urban redevelopment on retail shopping property values: a case study in Hong Kong

Purpose – Redevelopment, an essential aspect of the urban regeneration process, brings positive externalities to neighbourhoods. This study evaluates the effect of the improvements of neighbourhoods, brought about by redevelopment, on nearby ground-floor retail shopping property values. This study uses a hedonic price model to determine whether there is a relationship between redevelopment work and nearby shopping property values and the influence of neighbourhood improvements on the price of shopping properties if there is such relationship. The analysis is based on three large-scale redevelopment projects, each having a commercial space ranging from 30,000 to 50,000 sq.ft. The results show that an improved neighbourhood environment brings significant value enhancement to nearby shopping properties. Potential tenants are willing to pay a sale rental price premium ranging from 13% to 34% on shops located near redeveloped areas. The results also reveal that potential shop tenants are willing to pay a premium of 0.1% more on a shop with a cockloft. These findings imply that a neighbourhood environment that has been improved through well-planned redevelopment projects adds value to nearby properties. This study contributes an indication of the amount a tenant or buyer would be willing to pay on shops near redeveloped areas and can be used as a reference for users, developers and investors.

Buyers’ property asset purchase decisions: an empirical study on the high-end residential property market in Hong Kong

Demand for luxury housing units from the upper and upper-middle income groups in Hong Kong has been increasing over the last few years. as the market cannot satisfy demand, some prospective buyers have turned their attention to “special” housing units. this research paper attempts to investigate buyers’ preferences for two types of “special” units, namely duplex units and adjoining flats. the study investigates the price premiums paid by the buyers, and examines the effects of these special units on property price. the study employs two hedonic price models: one measuring the buy- ers’ preference on duplex units and the other one measuring buyers’ preference on adjoining flats. The results show that buyers are willing to pay a larger premium for special residential units: HK

Housing consumption and residential crowding in Hong Kong: a long‐term analysis

588/ft-super-2 more for a duplex unit and HK

Causality Relationship between Housing Prices and Construction Costs

934/ft-super-2 more for an adjoining property unit, respectively. furthermore, a relatively larger premium is found for adjoining flats compared to duplex units. This implies that a property unit, purchased as an adjoining flat can add more value to the property price (in terms of

Growth of Advanced Service Firms And Usage of Quality Office Space: The Case of Hong Kong

s per sq. ft.) compared with being a duplex unit.

Influence of Firm Size, Age and Usage of IT on the Growth of Firms: Some Evidence from Hong Kong' s Service Sector

Purpose – Residential crowding and underlying causes of crowding have been changing across the globe over time. The aim of this paper is to examine the dynamics of housing consumption and residential crowding in Hong Kong.Design/methodology/approach – While the two‐step Engle‐Granger co‐integration approach based on an error correction model (ECM) is used to test for long‐run relation and short‐run dynamics of housing consumption, the study also uses a multivariate regression model to analyze the factors affecting residential crowding. Along with other variables in previous literature, the study introduces a new institutional factor, i.e. land supply, into the model that analyzes these two issues over a time span of 25 years.Findings – The studys results suggest that many households in Hong Kong still have inadequate housing, and residential overcrowding is a serious issue. Coupled with market forces (e.g. income, housing price, household size), the new land supply factor noticeably has exerted significa...