This paper presents pioneering research investigating the effects of semi-obnoxious facilities on subdivided units (SDUs) via a spatial econometric method. It overcomes the shortcomings of previous studies by employing a spatial-temporal model with the best fit. The paper also considers the effects of the Hong Kong Urban Renewal Authority's proposed urban renewal strategy on SDUs. The study's key findings are in following folds. Initially, the tenants of SDUs pay 39% more in rent than the tenants of market rate housing. Subsequently, accessibility of schools is a primary concern for SDU residents. Thirdly, SDU tenants are willing to live close to disamenities in exchange for lower rent and convenience services provided by semi-obnoxious facilities. Last but not least, proximity to urban rehabilitation projects increase the rehabilitation chances of SDUs. These findings have important implications for urban planners and policymakers in wider geographical areas.
Bibliographical noteFunding Information:
This study is funded by Hong Kong Polytechnic University Research Grant ( G-YBH9 , 5-ZDAP and G-YBQS ). We would like to thank the editor Prof. Mark Patterson and anonymous referees for their extremely helpful comments. This study was supported by Research Grants of the Hong Kong Polytechnic University (Project Codes: G-YBH9, 5-ZDAP and G-YBQS).
© 2017 Elsevier Ltd
- Housing market
- Semi-obnoxious facilities
- Spatial-temporal model
- Subdivided units (SDUs)
- Urban renewal