Optimal site area for high-density housing development

This study provides an empirical assessment of the optimal site area for master-planned high-density housing development in Hong Kong. Conventional hedonic pricing methods are not used because they cannot separate the amenity value of large sites from the price effects caused by market power. We obtain our estimate from a unique data set containing the choice of applicants for public housing units in 128 housing estates in Hong Kong between 1990 and 1998. An inverted U-shaped relationship between site area and popularity of the estate is revealed. We conclude that the land areas of most public housing estates in Hong Kong are sub-optimal. Our estimated optimal site area serves as a quantitative benchmark for the government in its future disposal of public as well as private housing land.     

Assisted homeownership, investment and their roles in private property price dynamics in Hong Kong

Hong Kong not only has one of the most institutionally-involved housing markets, but also one of the most developed stock markets in the world. In the meantime, the function of real estate has become increasingly important, yet increasingly vague at the same time. This paper attempts to explore the significant factors in the price adjustments of residential properties. It is found that while most market fundamentals are not significant in explaining property price movements, the roles of investment concerns and of government policy changes in assisted homeownership (HOS) are much more critical in this regard. On the one hand, real estate prices are driven more by investor demand, rather than by user demand; and residential properties are used to hedge against price risks in the stock market, instead of against inflation. On the other hand, while the upgrading hypothesis is confirmed in this study, the situation of Hong Kong turns out to be a bit different from the Singapore experience. As the production of HOS flats is suspended until further notice, the resale HOS market has managed to pull a fraction of homebuyers from the private sector. This particular finding shows that the government’s decision to suspend HOS flat production and sale in Fall 2002 has not accomplished what was intended to achieve. Instead, this leads to several implications, which are then discussed.     

The private sector in Malaysian construction

Since the introduction of the New Economic Policy (NEP) in 1970, the rapid rate of urbanisation has meant an accelerated growth in the demand for housing. Housing needs have been identified under successive Malaysian Plans as a major social objective, where the overall goal is to ensure that all Malaysians have access to adequate housing.The responsibility for the low-income housing programme rests with the Ministry of Housing and Local Government, who have been unable to keep to housing targets set by successive Malaysian Plans. By 1985, the end of the fourth Malaysian Plan period, the overall shortfall was 56%.Today the private sector dominates the construction scene. Due to the lack of government enthusiasm for solving housing shortages and lack of funds, the private sector is increasingly encouraged by the government to build extensive areas of suburbia in and around the largest cities. In the fifth Malaysian Plan (1986–1990), the private sector is expected to supply 80% of the housing provision.The aim of this paper is: (1) to analyse the composition and structure of the private sector; (2) to discuss the current production process and government action to encourage private speculative construction; and (3) to analyse the performance of the private sector to date in fulfilling the housing targets.     

Private space, shared space and private housing prices in Hong Kong: An exploratory study

This exploratory study examines the relationship between internal space, shared space and private housing prices. Housing floor area is an ambiguous concept in Hong Kong because it covers a possible exaggeration of the amount of ‘private space’ exclusively enjoyed by the owner and an unidentifiable portion of ‘public space’ shared with other owners within the development. Using hedonic pricing models, this study has found that different distributions between private and shared space command different values from the housing buyers. Shared communal space generally exerts a downward pressure on housing prices. The buyers are willing to pay more for the private space and some desirable forms of communal space. A higher willingness-to-pay for the desirable attributes such as clubhouse indicates that the Hong Kong people are increasingly concerned about the quality of living space in the built environment. This study suggests a need of further research into the exact measurement and the different forms of housing space rather than simply taking the stated floor space figures for granted.     

GOVERNMENT INTERVENTION,LAND MARKET,AND URBAN DEVELOPMENT: EVIDENCE FROM CHINESE CITIES

This article investigates how government intervention in land market affects China's urban development, using data from prefecture‐level cities between 2000 and 2010. We find that government intervention enlarges the impact of positive productivity shocks on housing price appreciation, through mainly the government control over residential land supply. However, we find no significant evidence that high government intervention constrains population growth and leads to wage increase. Such patterns of urban dynamics can be explained by the fact that migrant workers are the driving force behind China's urbanization, but they have limited housing demand and are not well compensated. (JEL P52, R12, H11)     

Separate and Unequal: The Housing Act of 1968 and the Section 235 Program

In recent years scholars have identified racial disparities in wealth and home ownership as crucial factors underlying patterns of racial inequality and residential segregation in American metropolitan housing markets. While numerous federal housing policies have been identified as responsible for reinforcing residential segregation and racial inequalities in home ownership, little research has focused on the segregative effects of the Section 235 program. As one component of the 1968 Housing Act, Section 235 was designed to shift the focus of federal housing policy away from dispensing aid to local housing authorities for building public housing to providing direct supply-side subsidies to the private sector to stimulate home ownership for nonwhites and the poor. Archival and census data, government reports and housing analyses, and oral histories and interviews are used to examine the segregative effects of the Section 235 program in Kansas City, Missouri from 1969 through the early 1970s. Findings indicate that while the housing subsidy program allowed a vast majority of participating white families to purchase new housing in suburban areas, most participating African American families purchased existing homes located in racially transitional neighborhoods in the inner city. These findings corroborate recent research showing how the market-centered focus of federal housing policy has impaired the ability of African Americans to accumulate wealth through home ownership and reinforced racially segregative housing patterns.     

A review of private residential care in Hong Kong: implications for policy and practice

Hong Kong government policy encourages and facilitates families to care for their older members as long as possible by providing families and their older relatives with community support services. Residential care for the elderly is viewed as a last resort. Due to the inadequate supply of community support services, the long period of care required, and the gradual breakdown of values of filial support, families may increasingly give up their caring roles and seek residential care for their dependent elderly relatives. A shortfall in subsidized residential care may lead to needy elderly persons' being cared for in private residential facilities. The demand for private residential care is projected to increase, despite criticism about the standard of care provided. Although an Ordinance, a Regulation, and a Code of Practice for residential care homes are in place to control, monitor, and upgrade private residential care in Hong Kong, problems remain that put the elderly at risk of receiving substandard services. These include the existence of substandard private aged care homes operating either with or without a license; the provision of substandard "places" to the elderly under the government's "bought place" scheme and "enhanced bought place" scheme; ineffective inspection; a lack of grading to indicate the quality of private aged care homes; and a general neglect of the quality of care. We provide recommendations to address these concerns. This requires paying attention to both the quality of care, as well as to the physical environment of homes.     

The myths and politics of housing in Hong Kong: The controversy over the demolition of the Hunghom Estate

This paper explores the post-handover surge of civic activism in Hong Kong by examining the controversy over the demolition of the Hunghom Estate—a government subsidized housing project that was sold to private developers during a recession in early 2004. In a departure from “business as usual,” the high-profile demolition was stopped 10 months later after a series of protests mobilized by environmental activists. This result was widely hailed as a triumph of corporate responsibility and environmental consciousness. By tracing the competing narratives over the course of the controversy, this paper attempts to elucidate this “success” story by revealing the inherent conflicts between different stakeholders, and how these narratives nevertheless share and sustain a number of long-held myths about Hong Kong's economy and housing market. It argues that these myths obscure the ongoing political choices of an interventionist administration, which maintains legitimacy by tightly controlling urban development and securing support from powerful economic actors. By connecting the various claims of the present case with historic discourses of the territory, the paper aims to shed light on the power relations embedded in the development policies that characterized Hong Kong over the colonial period, and which continues to shape the practices of housing in the present.     

Property rights, collective sales and government intervention: averting a tragedy of the anticommons

In response to the need to cater for the requirements of a larger future population, the Urban Redevelopment Authority of Singapore released development guide plans, which have provided for higher development intensity to residential land in various parts of the island. One of the impacts is that many property owners in Singapore have banded together to capitalize on the “marriage value” of the en bloc site to reap big windfalls as compared to individual sales. But there were minority owners who objected to the sale. The Land Titles (Strata) (Amendment) Act 1999 was passed on 11 October 1999 to facilitate such en bloc sales as these will release prime land for higher density redevelopment to provide more quality private housing in land-scarce Singapore. This paper shows how property rights and property ownership could have led to a tragedy of the anticommons and how government intervention through legislation has averted such a tragedy. Whilst the Land Titles (Strata) (Amendment) Act 1999 has been successful in facilitating en bloc sales resulting in optimization of scarce land resources, it has raised controversial issues such as majority rule versus minority protection and the attenuation of property rights. The authors conclude that in land-scarce Singapore, public good, in that more land will be made available for private housing for the majority, should take precedence.     

Mobility and work-residence matching for new immigrants in Hong Kong

Due to their prominence in contributing to Hong Kong's population growth in recent years, new immigrants' housing preference play a crucial role on shaping housing demand. However, previous studies have not focused on their characteristics. This study aims to identify the factors which influence residential mobility and work-residence matching of households with new immigrants, based on the most recent Population census data in Hong Kong. The findings indicate that households which contain Mainland Chinese immigrants are more mobile residentially and have better work-residence matching than those with non-Chinese immigrants. Besides, the work-residence matching preference is stronger for a household with all of its members immigrating to Hong Kong together. In addition, it is found that both district poverty and housing affordability keep households from obtaining better work-residence matching in general. The impact of the latter is particularly remarkable among households with foreign immigrants. These new findings would provide valuable implications for policy and market development.     

Residential mobility in an era of economic transformations and population reformations: A case study of Hong Kong

This paper compares the home-moving patterns of Hong Kong citizens in the periods of 1996–2001 and 2001–2006, highlighted by economic downturns, population reformations and subsequent housing policies adjustments during the second period. It is first shown in the findings that the supply of public housing, instead of its tenure, dictates home-moving propensities and patterns. Then, housing needs among elderly and pre-elderly people appears to be overwhelmed by social needs such as attachment and existing social networks, along with direct or indirect financial constraints. Besides, spatial lock-in appears to be more prevalent among Chinese immigrants as compared to non-Chinese immigrants, owed to the former's ties to local Hong Kong residents and subsequent eligibility for government assistance. Yet, despite the availability of jobs and schools, the recent trend of people moving out of new towns gradually turns these areas into marginalized communities clustered with poor people, alienated within and in a sense excluded from the city landscape altogether. A variety of policy implications, from public finance, allocation of social resources, to land use planning of rural areas and potential social conflicts, are discussed in response to the trend of population aging and immigrations from the Mainland.     

Colonial State Entrapped – The Problem of Unregistered Schools in Hong Kong in the 1950s and 1960s

Utilizing sources from newspapers, published official documents, and declassified governmental files from archives in Hong Kong and England, this article explores the problem of unregistered schools in Hong Kong in the 1950s and 1960s. After the war the Hong Kong colonial government played a limited role in education provision, and private institutions became the chief providers of schooling facilities. To prevent private schools from operating in a manner detrimental to the political stability of the territories, and to ensure pupils' health and safety, the ruling authorities imposed strict regulations. This approach increased the cost of running private schools, caused a substantial portion of education demand to remain unfulfilled, and consequently led to the emergence of unregistered schools. These unlawful institutions placed the government under tremendous pressure, both because some were tied to questionable political factions and because the founding of these institutions provoked objections from operators of legal private schools. Since the colonial state continued to assume a limited role in education provision, strong action brought against unlawful institutions would have further increased the number of unschooled children and undermined the popularity of the government. These pressures made the presence of black market schools a very difficult problem to resolve.     

Social media and Umbrella Movement: insurgent public sphere in formation

The study examines the role of social media during the Umbrella Movement in Hong Kong that lasted from September to December 2014. By interviewing a random sample of 1011 respondents over the telephone before the end of the Umbrella Movement, it was found that social media had become an insurgent public sphere (IPS) in the protest movement. Data showed that acquisition of political news through social media was related positively to support for the Umbrella Movement and adversely with satisfaction and trust of established political authorities, including the Hong Kong Special Administrative Region government, the Hong Kong police, and the Chinese central government. The insurgent public sphere role of social media, its implications, and likely development vis-à-vis the state and the market are discussed.     

The private sector and urban housing production process in Nigeria: A study of small-scale landlords in Abuja

The private production system continues to supply the majority of housing to the population of Third World cities. In Nigeria, statistics show that the bulk of urban housing units is supplied for rent by small-scale private landlords. This paper examines the process of housing production among this category of producers using, as a case study, the peripheral settlements of Abuja, Nigeria's new capital city. A predominance of small-size sole proprietorships is established among the small-scale house building firms, mostly for reasons of maintaining operational flexibility and cost saving. It is also found that the greatest attraction of investing in rental housing by small entrepreneurs is the hedge it provides against inflation and the stability and permanence it introduces into the capital base of economic pursuits. A strong influence of traditional chiefs in land supply is revealed, together with the emergence of a commercialised land market, resulting in speculation and contributing to rising land prices. It is shown that building materials are the most problematic of the key building components to the housing production process. It is argued that small building firms would make more profit if they had access to formal sector working capital and that the practice of using casual workers in project execution has the advantage of enabling firms to survive periods of job drought, but does not encourage growth of the firms, apprenticeship training and skills development in the house construction industry. It is concluded that what is needed to enhance the operation of this category of producers is for government to accept an enabling role that will seek to minimise the financial burden and risks to which they are currently exposed.     

IS LAND LEASING A SOLUTION TO UNAFFORDABLE HOUSING?

The increase in U.S. mortgage rates from nine per cent in 1976 to fifteen per cent in 1982 raised monthly mortgage payments by about sixty per cent, even before rising house prices in the United States over this period are taken into account. Not surprisingly, attention has been focused on ways and means of counteracting spiralling housing costs. One proposed solution is land leasing. Under such an arrangement, the homebuyer purchases the house but leases the land. (There may be an option to buy the land at some time in the future.) Land leasing reduces the overall purchase price, and hence lowers the minimum down-payment and the initial monthly mortgage payment. In Hawaii, land leasing has been a readily available alternative to land owning throughout the postwar period. The analysis of residential housing prices in Hawaii provides some quantitative estimates of the relative prices of leasehold versus fee simple properties. The average price differential is surprisingly small. One explanation of these small price differentials, for which a model is developed and tested here, is that borrowing-constrained households use high discount rates to calculate the present value of the future land price that they will, in effect, have to pay at the expiration of the lease. These discount rates are estimated in a nonlinear hedonic property price equation. The results are then employed to answer the question: Under what conditions would a leaseholder buy the land outright before the expiration of the lease?     

城镇廉租住房政策两类配租方式的经济学分析

实物配租和租金配租是城镇廉租住房政策实施过程中主要的两类配租方式。通过经济学方式,从消费者效用和市场供求关系两个维度分别对其进行分析,得出在市场低档存量房短缺的情形下,实物配租优于租金配租的结论。在此基础上提出几方面政策建议,短期内以增加市场上廉租住房的存量,增大实物配租的覆盖面为主,结合提高租金配租的保障水平,消除两种配租形式之间存在的待遇不公现象,继而逐步转变为以租金配租为主、实物配租为辅的配租模式。     

对租赁型公共住房退出机制的另类思考——基于典型国家和地区的经验

我国香港地区公屋退出收入及资产标准的设定看似宽松、有悖公平原则,但有其科学和合理之处。而美国在公共住房的管理中对物(即房屋)的管理仅仅是一个方面,对人(即公共住房的居住者)的管理也同样重要,为保持公共住房的居住质量,对租户的某些行为必须进行严格管理。从新加坡经验看,是否实行租赁型公共住房出售政策与地区公共住房供应总量之间存在一定的正相关关系。相比之下,上海目前廉租住房的退出收入及资产标准太过严格,需要进行更多的人性化思考。     

The Role of the Nonprofit Sector in Hong Kong's Development

The recent handover of Hong Kong to the People's Republic of China (PRC) brought Hong Kong worldwide attention and scrutiny. In the run up to the handover, the international media prominently featured stories about Hong Kong's freewheeling capitalism and the stability created by its administrative institutions. Lost in the media attention was the role of nonprofit organizations and the voluntary sector in Hong Kong's political and economic development. Although Hong Kong has a vibrant civil society, it has received little attention from scholars. This paper reviews the role of the third sector in Hong Kong's development. Among the issues the paper addresses are the legal codes that govern the creation and operation of nonprofit organizations in Hong Kong, the evidence regarding the role of the nonprofit sector in Hong Kong's development, particularly its relationship to the government and market sectors, and the implications of the 1997 transition for the nonprofit sector's role.     

Surrendering the environment for capital gain and Olson’s group theory: A case study of the dissolution of housing co-operative societies in Hong Kong

This paper describes the rise of the co-operative housing of civil servants and its fall during the transition of Hong Kong from a British colony to a special administrative region of the People’s Republic of China. Olson’s group theory was adopted to explain the timing of the dissolution in a context of uncertainty in the property rights of land; the terms of civil service appointments; and the housing market. The size of the ownership body and the value of the land were evaluated as factors affecting dissolution decisions. It was found that in agreement with Olson’s theory, the number of members of the body had a statistically significant positive relationship with the life (between formation and dissolution) of the co-operative body. In addition, it was also found that factors that affected the opportunity cost of maintaining status quo, including the value of the land on which the co-op scheme sits and the real option value of redevelopment, had a significant impact on the timing of the dissolution of the co-op. The implications for using Olson’s theory were also discussed.     

关于发展、完善上海住房租赁市场的建议

当前上海住房租赁市场在租金、房源、规范监控、合同纠纷等方面都存在问题,尤其与发达国家住房租赁市场比较,上海在住房租赁市场的制度建设方面还处于起步阶段,政府对住房租赁市场长期处于缺乏基本数据、基本无法监控的状态。究其根源,我国在住房市场的培育、发展和管理上存有重买卖轻租赁的倾向。应重新认识和重视住房租赁市场对于社会生活健康发展的意义和作用,积极创新租赁住房建设的土地供给,多渠道开辟租赁住房投资的融资通道,加紧住房租赁市场的制度建设。