Does Comprehensive Redevelopment Change the Housing Price Gradient? A Case Study in Mongkok, Hong Kong

Urban decay is an inevitable result of the growth of every city, and Hong Kong is not an exception. Many buildings were found to be in dilapidation, and there is an urgency to tackle urban decay in the city. Redeveloping dilapidated buildings has long been regarded as an effective solution to this urban problem. Yet, as suggested in the literature, redevelopment may be liable for gentrifying the neighbourhood because it pushes upon the property prices and rentals in the vicinity of redeveloped sites. However, empirical studies on how comprehensive redevelopment affects housing values in the neighourhood are not common. In this light, this research investigates the impacts of Argyle Street/Shanghai Street Redevelopment Project undertaken by the Urban Renewal Authority on the sale prices of housing nearby. A panel data is employed and the change in the spatial price gradient before and after the redevelopment project is explored. The analysis results suggest that proximity to the project site had a significant positive impact with housing prices before the project. Yet, no change in the spatial-price gradient is spotted after the completion of the project. These results confirm that housing prices do not response to the change in the environmental quality brought about by the comprehensive redevelopment.