The effect of urban redevelopment on retail shopping property values: a case study in Hong Kong

Wadu Mesthrige Jayantha and Chu Chun Ming

International Journal of Urban Sciences, 2015, vol. 19, issue 3, 379-399

Abstract: Purpose - Redevelopment, an essential aspect of the urban regeneration process, brings positive externalities to neighbourhoods. This study evaluates the effect of the improvements of neighbourhoods, brought about by redevelopment, on nearby ground-floor retail shopping property values. This study uses a hedonic price model to determine whether there is a relationship between redevelopment work and nearby shopping property values and the influence of neighbourhood improvements on the price of shopping properties if there is such relationship. The analysis is based on three large-scale redevelopment projects, each having a commercial space ranging from 30,000 to 50,000 sq.ft. The results show that an improved neighbourhood environment brings significant value enhancement to nearby shopping properties. Potential tenants are willing to pay a sale rental price premium ranging from 13% to 34% on shops located near redeveloped areas. The results also reveal that potential shop tenants are willing to pay a premium of 0.1% more on a shop with a cockloft. These findings imply that a neighbourhood environment that has been improved through well-planned redevelopment projects adds value to nearby properties. This study contributes an indication of the amount a tenant or buyer would be willing to pay on shops near redeveloped areas and can be used as a reference for users, developers and investors.

Date: 2015
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1080/12265934.2015.1095111 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjusxx:v:19:y:2015:i:3:p:379-399

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjus20

DOI: 10.1080/12265934.2015.1095111

Access Statistics for this article

International Journal of Urban Sciences is currently edited by Dongjoo Park and Mack Joong Choi

More articles in International Journal of Urban Sciences from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().