Urban decay is an inevitable outcome of the growth of most cities, including Hong Kong. Many old buildings in Hong Kong are dilapidated, and it is urgent to tackle urban decay in the city. Redeveloping dilapidated buildings has long been regarded as an effective solution to this urban problem. Yet, as suggested in the literature, redevelopment may be responsible for gentrifying neighbourhoods because it pushes up property and rental prices near redeveloped sites. However, there are still few empirical studies on how comprehensive redevelopment affects housing values in a neighbourhood. In this light, this study investigates the impacts of the Urban Renewal Authority's Argyle Street / Shanghai Street Redevelopment Project on the transaction prices of nearby housing. A set of panel data is employed and the change in the spatial price gradient before and after the redevelopment project is explored. The findings suggest that proximity to the project site had a significant positive impact on housing prices before the project. However, no change was seen in the spatial-price gradient after completion of the project. These results confirm the findings of a previous study that housing prices do not respond to the change in the environmental quality resulting from comprehensive redevelopment.
|Number of pages||9|
|Publication status||Published - Dec 2011|
Bibliographical noteThe work described in this paper was supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (Project no. CityU 1508/08). An earlier version of the paper was presented at the European Real Estate Society Conference 2009 in Stockholm. The author would like to thank the conference delegates for their valuable comments and suggestions for developing this paper. In addition, the author is also grateful to Phoebe Chau and Joe Chu for helping with the data collection and consolidation processes.
- Comprehensive redevelopment
- Hedonic price analysis
- Hong Kong
- Housing price