Impact of urban rehabilitation : evidence from subdivided units in Hong Kong

Cong LIANG; Eddie Chi Man HUI; Tsz Leung YIP

doi:10.1108/IJHMA-12-2021-0136

Impact of urban rehabilitation : evidence from subdivided units in Hong Kong

Cong LIANG^*, Eddie Chi Man HUI, Tsz Leung YIP

^*Corresponding author for this work

Research output: Journal Publications › Journal Article (refereed) › peer-review

1 Citation (Scopus)

Abstract

Purpose: This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants.

Design/methodology/approach: This paper adopts the fixed effects time-on-market (TOM) model and pricing model to study the research question.

Findings: Urban rehabilitation lifts the subdivided units (SDUs’) prices by around 7%. For the SDU located in old districts, urban rehabilitation gives rise to the rental price up by 11%–12%. The SDUs in the area without urban rehabilitation experience a short marketing period of 16%–17%. The SDU located in the old district that is without urban rehabilitation would have a short marketing time.

Originality/value: To the best of the authors’ knowledge, this is the pioneering research to investigate the relationship between rehabilitation and low-income rental housing from the improved search theory. The improved search theory posits that under the circumstance of urban rehabilitation, low-income tenants’ options are limited and the search behavior will be restricted in the affordable areas, and then TOM will be shortened. With the concentration of SDUs in Hong Kong, the test of the search theory is broken down into two hypotheses. (H1) Urban rehabilitation leads to low-income housing prices increase. (H2) Low-income housing located in areas without urban rehabilitation has a shorter TOM.

Original language	English
Pages (from-to)	716-735
Number of pages	20
Journal	International Journal of Housing Markets and Analysis
Volume	16
Issue number	4
Early online date	12 May 2022
DOIs	https://doi.org/10.1108/IJHMA-12-2021-0136
Publication status	Published - 14 Aug 2023
Externally published	Yes

Bibliographical note

Funding Information:
This study was supported by the research grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (UGC/IDS16/17), the Postdoctoral Fellowships Scheme of the Hong Kong Polytechnic University (Number: P0000319 and 1-YW3L) , and the Hong Kong Metropolitan University Research Grant (Project Ref. No: RD/PFDS/2021/13).

Publisher Copyright:
© 2022, Emerald Publishing Limited.

Keywords

Hong Kong
Housing markets
Market-rate housing
Subdivided units (SDUs)
Time-on-market (TOM)
Urban rehabilitation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1108/IJHMA-12-2021-0136

Cite this

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title = "Impact of urban rehabilitation : evidence from subdivided units in Hong Kong",

abstract = "Purpose: This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants. Design/methodology/approach: This paper adopts the fixed effects time-on-market (TOM) model and pricing model to study the research question. Findings: Urban rehabilitation lifts the subdivided units (SDUs{\textquoteright}) prices by around 7%. For the SDU located in old districts, urban rehabilitation gives rise to the rental price up by 11%–12%. The SDUs in the area without urban rehabilitation experience a short marketing period of 16%–17%. The SDU located in the old district that is without urban rehabilitation would have a short marketing time. Originality/value: To the best of the authors{\textquoteright} knowledge, this is the pioneering research to investigate the relationship between rehabilitation and low-income rental housing from the improved search theory. The improved search theory posits that under the circumstance of urban rehabilitation, low-income tenants{\textquoteright} options are limited and the search behavior will be restricted in the affordable areas, and then TOM will be shortened. With the concentration of SDUs in Hong Kong, the test of the search theory is broken down into two hypotheses. (H1) Urban rehabilitation leads to low-income housing prices increase. (H2) Low-income housing located in areas without urban rehabilitation has a shorter TOM.",

keywords = "Hong Kong, Housing markets, Market-rate housing, Subdivided units (SDUs), Time-on-market (TOM), Urban rehabilitation",

author = "Cong LIANG and HUI, {Eddie Chi Man} and YIP, {Tsz Leung}",

note = "Funding Information: This study was supported by the research grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (UGC/IDS16/17), the Postdoctoral Fellowships Scheme of the Hong Kong Polytechnic University (Number: P0000319 and 1-YW3L) , and the Hong Kong Metropolitan University Research Grant (Project Ref. No: RD/PFDS/2021/13). Publisher Copyright: {\textcopyright} 2022, Emerald Publishing Limited.",

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doi = "10.1108/IJHMA-12-2021-0136",

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T1 - Impact of urban rehabilitation : evidence from subdivided units in Hong Kong

AU - LIANG, Cong

AU - HUI, Eddie Chi Man

AU - YIP, Tsz Leung

N1 - Funding Information: This study was supported by the research grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (UGC/IDS16/17), the Postdoctoral Fellowships Scheme of the Hong Kong Polytechnic University (Number: P0000319 and 1-YW3L) , and the Hong Kong Metropolitan University Research Grant (Project Ref. No: RD/PFDS/2021/13). Publisher Copyright: © 2022, Emerald Publishing Limited.

PY - 2023/8/14

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N2 - Purpose: This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants. Design/methodology/approach: This paper adopts the fixed effects time-on-market (TOM) model and pricing model to study the research question. Findings: Urban rehabilitation lifts the subdivided units (SDUs’) prices by around 7%. For the SDU located in old districts, urban rehabilitation gives rise to the rental price up by 11%–12%. The SDUs in the area without urban rehabilitation experience a short marketing period of 16%–17%. The SDU located in the old district that is without urban rehabilitation would have a short marketing time. Originality/value: To the best of the authors’ knowledge, this is the pioneering research to investigate the relationship between rehabilitation and low-income rental housing from the improved search theory. The improved search theory posits that under the circumstance of urban rehabilitation, low-income tenants’ options are limited and the search behavior will be restricted in the affordable areas, and then TOM will be shortened. With the concentration of SDUs in Hong Kong, the test of the search theory is broken down into two hypotheses. (H1) Urban rehabilitation leads to low-income housing prices increase. (H2) Low-income housing located in areas without urban rehabilitation has a shorter TOM.

AB - Purpose: This paper aims to explore one question: to what extent does urban rehabilitation impact the housing search cost of the low-income tenants. Design/methodology/approach: This paper adopts the fixed effects time-on-market (TOM) model and pricing model to study the research question. Findings: Urban rehabilitation lifts the subdivided units (SDUs’) prices by around 7%. For the SDU located in old districts, urban rehabilitation gives rise to the rental price up by 11%–12%. The SDUs in the area without urban rehabilitation experience a short marketing period of 16%–17%. The SDU located in the old district that is without urban rehabilitation would have a short marketing time. Originality/value: To the best of the authors’ knowledge, this is the pioneering research to investigate the relationship between rehabilitation and low-income rental housing from the improved search theory. The improved search theory posits that under the circumstance of urban rehabilitation, low-income tenants’ options are limited and the search behavior will be restricted in the affordable areas, and then TOM will be shortened. With the concentration of SDUs in Hong Kong, the test of the search theory is broken down into two hypotheses. (H1) Urban rehabilitation leads to low-income housing prices increase. (H2) Low-income housing located in areas without urban rehabilitation has a shorter TOM.

KW - Hong Kong

KW - Housing markets

KW - Market-rate housing

KW - Subdivided units (SDUs)

KW - Time-on-market (TOM)

KW - Urban rehabilitation

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DO - 10.1108/IJHMA-12-2021-0136

M3 - Journal Article (refereed)

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SN - 1753-8270

VL - 16

SP - 716

EP - 735

JO - International Journal of Housing Markets and Analysis

JF - International Journal of Housing Markets and Analysis

IS - 4

ER -

Impact of urban rehabilitation : evidence from subdivided units in Hong Kong

Abstract

Bibliographical note

Keywords

UN SDGs

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