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Determining Optimal Building Height

Author

Listed:
  • Kwong-Wing Chau

    (Department of Real Estate and Construction, University of Hong Kong, Pokfulam Road, Hong Kong, hrrbckw@hku.hk)

  • S.K. Wong

    (Department of Real Estate and Construction, University of Hong Kong, Pokfulam Road, Hong Kong, sk-wongb@hku.hk)

  • Y. Yau

    (Department of Real Estate and Construction, University of Hong Kong, Pokfulam Road, Hong Kong, simonyau@hkusua.hk)

  • A.K.C. Yeung

    (Department of Real Estate and Construction, University of Hong Kong, Pokfulam Road, Hong Kong, matsu@hkusua.hk)

Abstract

The paper examines how building height is determined in the absence of building height regulatory restrictions. A model is developed for determining optimal height using simple neo-classical economic analysis; this is then tested using empirical data from Hong Kong. The results show that the observed building heights are consistent with the optimal height predicted by the model. In addition, it was also found that the point of optimality varied positively with the quality of the external environment. An important practical implication is that town planners and policy-makers can make use of the model as a benchmarking tool to assess and quantify the effect of imposing or relaxing height restrictions.

Suggested Citation

  • Kwong-Wing Chau & S.K. Wong & Y. Yau & A.K.C. Yeung, 2007. "Determining Optimal Building Height," Urban Studies, Urban Studies Journal Limited, vol. 44(3), pages 591-607, March.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:3:p:591-607
    DOI: 10.1080/00420980601131902
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    References listed on IDEAS

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    3. David Picken & Ben Ilozor, 2003. "Height and construction costs of buildings in Hong Kong," Construction Management and Economics, Taylor & Francis Journals, vol. 21(2), pages 107-111.
    4. Benson, Earl D & Hansen, Julia L. & Schwartz Jr., Arthur & Smersh, Greg T., 1998. "Pricing Residential Amenities: The Value of a View," The Journal of Real Estate Finance and Economics, Springer, vol. 16(1), pages 55-73, January.
    5. Bertaud, Alain & Brueckner, Jan K., 2005. "Analyzing building-height restrictions: predicted impacts and welfare costs," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 109-125, March.
    6. Yanxiang Anthony Gu & Peter F. Colwell, 1997. "Housing rent and occupational rank in Beijing and Shenyang, People's Republic of China," Journal of Property Research, Taylor & Francis Journals, vol. 14(2), pages 133-143, January.
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    Cited by:

    1. Valentina Antoniucci & Giuliano Marella, 2014. "Torri incompiute: i costi di produzione della rigenerazione urbana in contesti ad alta densit?," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(3), pages 117-124.
    2. Jason Barr, 2012. "Skyscraper Height," The Journal of Real Estate Finance and Economics, Springer, vol. 45(3), pages 723-753, October.
    3. Fleming, David & Grimes, Arthur & Lebreton, Laurent & Maré, David & Nunns, Peter, 2018. "Valuing sunshine," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 268-276.
      • David Fleming & Arthur Grimes & Laurent Lebreton & David C Maré & Peter Nunns, 2017. "Valuing Sunshine," Working Papers 17_13, Motu Economic and Public Policy Research.
    4. Li, Yu & Rezgui, Yacine & Zhu, Hanxing, 2017. "District heating and cooling optimization and enhancement – Towards integration of renewables, storage and smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 281-294.

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