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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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    Cited by:

    1. Chang, Zheng, 2014. "Financing new metros—The Beijing metro financing sustainability study," Transport Policy, Elsevier, vol. 32(C), pages 148-155.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
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    12. Wai Hong Kan Tsui & David Tat Wei Tan & Song Shi, 2017. "Impacts of airport traffic volumes on house prices of New Zealand’s major regions: A panel data approach," Urban Studies, Urban Studies Journal Limited, vol. 54(12), pages 2800-2817, September.
    13. Xu, Tao & Zhang, Ming & Aditjandra, Paulus T., 2016. "The impact of urban rail transit on commercial property value: New evidence from Wuhan, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 223-235.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. 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.
    20. Chang, Zheng & Phang, Sock-Yong, 2017. "Urban rail transit PPPs: Lessons from East Asian cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 106-122.
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