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Rail and Property Development in Hong Kong: Experiences and Extensions

Author

Listed:
  • Robert Cervero

    (Department of City and Regional Planning, 228 Wurster Hall, University of California at Berkeley, Berkeley, CA, 94720-1850, USA, robertc@berkeley.edu)

  • Jin Murakami

    (Department of City and Regional Planning, 228 Wurster Hall, University of California at Berkeley, Berkeley, CA, 94720-1850, USA)

Abstract

Hong Kong has aggressively pursued transit value capture to finance railway infrastructure through its ‘Rail + Property’ development programme, or R+P. More than half of all income to the railway operators comes from property development. Most R+P projects focus on housing although all have some commercial development. Recent generation R+P projects have stressed pedestrian quality. This research shows this has in turn increased ridership and housing prices. An R+P station with a transit-oriented design averages 35 000 additional weekday passengers. Housing price premiums in the range of 5—30 per cent were found. Hong Kong’s R+P model, it is suggested, is well suited for financing rail infrastructure and advancing transit-oriented designs in the rapidly growing cities of mainland China.

Suggested Citation

  • Robert Cervero & Jin Murakami, 2009. "Rail and Property Development in Hong Kong: Experiences and Extensions," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2019-2043, September.
    • Handle: RePEc:sae:urbstu:v:46:y:2009:i:10:p:2019-2043
    DOI: 10.1177/0042098009339431
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    References listed on IDEAS

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    2. Murakami, Jin & He, Yiming, 2018. "Highway investment in deindustrialization: A territorial analysis of office property transactions in Hong Kong, 2002–2013," Journal of Transport Geography, Elsevier, vol. 66(C), pages 200-212.
    3. Sun, Jun & Chen, Tian & Cheng, Zuchen & Wang, Cynthia C. & Ning, Xin, 2017. "A financing mode of Urban Rail transit based on land value capture: A case study in Wuhan City," Transport Policy, Elsevier, vol. 57(C), pages 59-67.
    4. Mitra, Suman K. & Saphores, Jean-Daniel M., 2016. "The value of transportation accessibility in a least developed country city – The case of Rajshahi City, Bangladesh," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 184-200.
    5. Natacha Aveline-Dubach & Guillaume Blandeau, 2019. "The political economy of transit value capture: The changing business model of the MTRC in Hong Kong [L'économie politique de la captation de valeur foncière (Land value capture): le nouveau modèle," Post-Print halshs-02100616, HAL.
    6. Jyothi Chava & Peter Newman, 2016. "Stakeholder Deliberation on Developing Affordable Housing Strategies: Towards Inclusive and Sustainable Transit-Oriented Developments," Sustainability, MDPI, vol. 8(10), pages 1-21, October.
    7. Zhao, Pengjun & Yang, Hanzi & Kong, Lu & Liu, Yunshu & Liu, Di, 2018. "Disintegration of metro and land development in transition China: A dynamic analysis in Beijing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 290-307.
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    10. Singh, Yamini Jain & Fard, Pedram & Zuidgeest, Mark & Brussel, Mark & Maarseveen, Martin van, 2014. "Measuring transit oriented development: a spatial multi criteria assessment approach for the City Region Arnhem and Nijmegen," Journal of Transport Geography, Elsevier, vol. 35(C), pages 130-143.
    11. Elena Koncheva & Nikolay Zalesskiy, 2016. "Spatial Development of the Largest Russian Cities During the Post-Soviet Period: Orienting Towards Transit or Maintaining Soviet Trends," HSE Working papers WP BRP 04/URB/2016, National Research University Higher School of Economics.
    12. Alpkokin, Pelin & Topuz Kiremitci, Sabahat & Black, John Andrew & Cetinavci, Sukru, 2016. "LRT and street tram policies and implementation in turkish cities," Journal of Transport Geography, Elsevier, vol. 54(C), pages 476-487.
    13. Wang, Jinshuo & Samsura, D. Ary A. & van der Krabben, Erwin, 2019. "Institutional barriers to financing transit-oriented development in China: Analyzing informal land value capture strategies," Transport Policy, Elsevier, vol. 82(C), pages 1-10.
    14. Singh, Yamini Jain & Lukman, Azhari & Flacke, Johannes & Zuidgeest, Mark & Van Maarseveen, M.F.A.M., 2017. "Measuring TOD around transit nodes - Towards TOD policy," Transport Policy, Elsevier, vol. 56(C), pages 96-111.
    15. Knowles, Richard D., 2012. "Transit Oriented Development in Copenhagen, Denmark: from the Finger Plan to Ørestad," Journal of Transport Geography, Elsevier, vol. 22(C), pages 251-261.
    16. Ng, Ka Fai & Lo, Hong K., 2017. "On joint railway and housing development: Housing-led versus railway-led schemes," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 464-488.
    17. Lyu, Guowei & Bertolini, Luca & Pfeffer, Karin, 2016. "Developing a TOD typology for Beijing metro station areas," Journal of Transport Geography, Elsevier, vol. 55(C), pages 40-50.
    18. Lindau, Luis Antonio & Hidalgo, Dario & de Almeida Lobo, Adriana, 2014. "Barriers to planning and implementing Bus Rapid Transit systems," Research in Transportation Economics, Elsevier, vol. 48(C), pages 9-15.
    19. Zheng, Longfei & Long, Fenjie & Chang, Zheng & Ye, Jingsong, 2019. "Ghost town or city of hope? The spatial spillover effects of high-speed railway stations in China," Transport Policy, Elsevier, vol. 81(C), pages 230-241.
    20. Vergel-Tovar, C. Erik & Rodriguez, Daniel A., 2018. "The ridership performance of the built environment for BRT systems: Evidence from Latin America," Journal of Transport Geography, Elsevier, vol. 73(C), pages 172-184.
    21. Chang, Zheng, 2014. "Financing new metros—The Beijing metro financing sustainability study," Transport Policy, Elsevier, vol. 32(C), pages 148-155.

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