The System of Urban Land Policies in Hong Kong

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1 ARCH 4721 Land and City, CUHK 22 Oct 2014 The System of Urban Land Policies in Hong Kong - How land policies and regulations shape the urban form by Dr Edward CY Yiu Associate Professor Dept of Geography and Resource Management, Chinese University of Hong Kong 1

2 Net Benefits of Urbanization Conditioned by the Institutional Framework The net benefits of urbanization are conditioned by the institutional framework within which cities operate. Where there is effective representative government; Where there is a dynamic market economy; Where the rule of law is upheld and Where civil society is independent from the state, The benefits of a dense population overwhelm the costs. Urban Forms are shaped by Institutional Framework! 2

3 Political and Economic Institutions Determine Development Form Goma in Congo, no electricity, water or basic services Gisenyi in Rwanda, orderly street, taxis, electricity and water Why Nations Fail uses the large differences in income borders as a way of showing dramatically how changes in institutions can lead to large differences in prosperity. 3

4 Different Urban Policy, Different Urban Form Case 1 One City, Two Systems One of the densest settlements in the world A pre-colonial town within a colonial city Kowloon City - the world s greatest informal settlement (unplanned) The history: on_walled_city whats-left-of-the-kowloon-walled-city/ 4

5 A City of Anarchy An independent city without state 20-years-later/ But it was gone. 5

6 Case 2: A Pre-Colonial Village One City, Two Systems: in a Post-Colonial City One of the earliest indigenous village in Hong Kong, which still exists; It is not in the New Territories, but on the Island, i.e. NOT small houses. Low-rise high-dense organic urban form? Why? Pokfulam Village from 1868 to

7 Urban Forms of HK High Rise and High Dense; Verandah and Balcony; Podium and Tower; Bay Window and Scissor Staircase; Link Bridge; Unaffordable. 7

8 Why High Rise High Dense? 8

9 Land Use Distribution HK 2012 Use ( 用途 ) % R ( 住 ) 6.9% I/C ( 工商 ) 2.7% G ( 綠 ) 66.6% AGR ( 農 ) 6.1% GIC/O ( 政 / 空 ) 4.5%

10 HK Cityscape: A Dim Sum Urbanism 10

11 Contrast Low Density 11

12 High Density

13

14 Total Land Use Area (ha) SIN v HK 2010 SIN 2012 HK Res. 10,000 (14%) 9,760 (9.5%) Ind./Com. 9,700 (13%) 2,300 (2.1%) Green 5,700 (8%) ~73,000 (66%) GIC 5,400 (8%) 3,700 (3.5%) Total 71, ,200

15 Country/ city GDP per Capita Ave. Living Area (sf) Per Person (sf) US 51,704 2,476 ~800 Taiwan 38,357 1,119 ~370 SIN 60,799 1, Tokyo 35, ~220 Shanghai 9, HK 50, Ave per person living area of HK = 0.5 of SIN

16 Modest overall density, but very high urban density of HK.

17 Because the average density, not urban density, is considered 17

18 Innovations by Institutional Forces Scissor staircases are an effective design strategy to minimize common areas (core) and thus maximize residential (saleable) area. 18

19 Institutional Force: Density Tall buildings are encouraged by regulations: S Building (Planning) Regulations (BPR) Control Plot ratio increases with building height, but Each floor area = 720sm Site coverage decreases with building height. 6-storey OR Site area = 1,000sm Ht = 18m, pr = 4.3, sc = 72% Site area = 1,000sm Ht = 75m, pr = 10, sc = 40% 19

20 Domestic buildings Non-domestic buildings Ht Percentage site coverage Plot ratio Percentage site coverage Plot ratio Class A site B C Class A site B C Class A site B C Class A site B C <= 15 m >15 m <=18 m >55 m <= 6 1 m Over 61 m

21 Height Control by Other Regulations Authority Land Lease Condition Town Planning Ordinance : BHR Other height restrictions of TPO Small House Policy (BO(ANT)O) HK Airport (COO) Ordinance Height Control Can be modified by paying land premium BHR should allow owners to develop their properties to the permitted level of intensity (protecting property rights) TST East, Kowloon Tong Garden City, Houses on the Peak, Stanley 3-storey of 750sf each Tung Chung, Kowloon East (bef 1997), 21

22 Why Verandah and Balcony? Urban Policies GFA Concessions Street Lighting Specific Descriptions Projections over public street A Tapered City me-history-of-building-codes-of-theus/comment-page-1/#comment

23 Shanghai Street before WWII 23

24 Pre-War Tong Lau Tong Lau 唐樓 (Chinese Tenement or shophouse) is NOT Chinese architecture; but a Cross-over between European and Asia Pacific Style Veranda 走馬騎樓 ; Columns on street 臨街柱子 ; Blocks in row 排樓格式 ; T-shaped floor plan 工字型

25 GFA Concession BO s.31 Projections on or over streets no building or other structure shall be erected in, over, under or upon any portion of any street But by Schedule G of BO 1935 (or earlier versions), verandahs and balconies are exempted from this restriction; The first gfa concession ( 發水 ) in Hong Kong.

26 Verandahs and Balconies Regulations BO 1903, s.134 s.134: No encroachment shall be made on, over or into unleased Crown land by any verandah or balcony, or by any area, or by any structure whatsoever 1.Unless with the previous consent of the Governor; and 2.Until the applicant for leave to make such encroachment shall have previously signed an undertaking in the form contained in Schedules E or F; and 3.Unless subject to the regulations contained in Schedule G or such other regulations as may be in force; and 4.Unless the building to which such verandah, balcony, area or structure appertains shall comply in all respects with every provision of this Ordinance. s.137: No verandah shall, except with the consent of the Governor in Council, be hereafter projected over any street, whether public or private, which is less than 50 feet in width.

27 Little Veranda 小飛騎 Narrow street -> narrow balcony

28 Why Round Corners Tong Lau? Maximize the projection over street (concession); When the street is round corner, it results in a round corner building form.

29 天階騎樓 Street Light Veranda Street Lighting Requirement 銀燭秋光冷畫屏, 輕羅小扇撲流螢 天階夜色涼如水, 坐看牽牛織女星 [ 唐 杜牧 秋夕 ] 天階 不是登天之梯, 而是 天井 [ 王亭之 廣府回憶 ]

30 Post-War Tong Lau More advanced reinforced concrete technology: Balcony 陽台 ; Cantilevered (no columns on street) 臨街無柱 ; Blocks in row 排樓格式

31 Why Shoring? Party wall shared by 2 blocks; If redevelop one first,

32 Why Tapered? High-rise, no natural lighting BO degree to horizontal Protect street shadow

33 Why Tapered? New York Zoning Regulations,1916: Set back, FAR, Skyscrapers

34 Why Podium and Tower? Hong Kong Birthday Cake with Candles 蛋糕蠟燭 Cake and Candles New York Wedding Cake without candle? 34

35 BPR 1976: Why Podium and Tower? S.20(3): Subject to the provisions of paragraph (4), the site coverage for a non-domestic building, or for the non-domestic part of a composite building, on a class A, B or C site may, whatever the height of the building, exceed the permitted percentage site coverage to a height not exceeding 15 m above ground level. 35

36 HK: A City of Bay Windows 36

37 Why Bay Windows? PNAP 68 Projections in relation to site coverage and plot ratio if projections are not at a floor level, or potential floor level, and do not dominate the face of a building, measurement as accountable gross floor area is not required 37

38 Facades Changes Verandah (bef 1945), Balcony (bef 1970), Bay Windows (1980s), Green Balcony (2000s), AVA Big Hole (2010s) ( 騎陽窗露洞 ) 38

39 Floor Plans Changes I, II, T, # ( 一二工井 ) I-plan before 1894 (Bubonic Plague); II-plan after 1894: separate 2 blocks by a back lane; T-plan after 1903: provide 2 yards to further enhance natural lighting and ventilation; then a longer T due to the requirement of 2 exit staircase; #-plan after 1969: without veranda concession, twist 8-T into a circle makes a #. Yards become re-entrants; Then, SARS in 2003, spread by re-entrants, but...

40 Renaissance City (Y. Asihara) A: 240 x 340m; B: 270 x 340m, C: 180 x 340m Street form of the city: every 100m block accommodate s about 20+ repeating balconies in harmony. Uniform height (H) of about 15m, even less than street width (D), D/H>1. Asihara(1983) Renaissance City

41 S.22 BPR Surrender of land for public passage; Bonus GFA = 5 x surrendered area or less than 20% of the permissible plot ratio; Why Link Bridges? 41

42 Why Public Facilities in Private Developments? Public Open Space in Private Developments; Public Transportation Terminals under Private Developments; 42

43 Public Infrastructure at No Cost Nominal land premium BOT BOOT PPP See 3.pdf 43

44 All Are About Money! High Rise, High Density By Little Land Supply, Regulation Encourages Consequences High Land Price Veranda and Balcony Concessions Extra Profits of Developments Street Lighting, Lane, Yard Diseases Tapered Form, Street Form Podium and Tower Regulation Encourages Cake and Candle Link Bridge, Concessions Extra Profits of Developments Public Space in Private Dev., Privately Built Infrastructure Lease Conditions, PPP Govt Saves Money

45 Urban Policies & Urban Forms Economic Efficiency HK Environmental Sustainability Social Equity Technopolis Technopolis: constellation of massive transportation, telecommunications, and information networks to move goods, people, and information to achieve high economic efficiency. Ecumenopolis Anthropopolis Sui, D.Z ors/sui/paper.html

46 The Most Expensive Apartment in The Opus Frank Gehry-designed; (6,683 square foot); HK$455 million in 2012; i.e. HK$68,000 psf. (US$8,700 psf) the World? 46

47 Restrictive Land Supply Land (for all uses) Private Housing Units to be built Bef 1997 < 50 ha Ave. 26, / ha 9, / ha 10, / ha 13,550 Target - 20,000 See Peng, R. and Wheaton, W.C. (1994) Effects of Restrictive Land Supply on Housing in Hong Kong: An Econometric Analysis, JHR 5(2),

48 Development Control Further Limits Land Supply Planning Control Lease Control Building Control Env. Control Change of Use s.16 application Land premium Prescriptive codes Impact assessments Consequences New Supply is limited to New Development Negotiation, government becomes an investor Rigid and difficult to be adapted to other uses Tedious and expensive

49 Development Control Further Limits Land Supply Glaeser et al. (2005) argue that the limited supply response primarily is the consequence of an increasingly restrictive regulatory environment. Wong (2013) contends that the government failed to convert in time the industrial zoned land to commercial / residential zone, is one of the major reasons of insufficient housing supply in HK. See Wong, R.Y.C. (2013) 香港深層次矛盾, 中華書局 Glaeser, E.L., Gyourko, J. and Saks, R. (2005) Why is Manhattan So Expensive? Regulation and the Rise in Housing Prices, Penn IUR Publ. Glaeser, Edward, and Gyourko, Joseph. The Impact of Zoning on Housing Affordability. Economic Policy Review 9, No. 2 (2003):

50 Why Expensive? Urban Policies Monetary Policy Land Supply Policy Development Control Policy Specific Descriptions Money supply is externally determined - negative real interest rate causes high property price Land supply is monopolized - restrictive land supply Development control is fragmented and rigid inflexible to meet market changes Development Control Policy Monetary Policy Land Supply Policy 50

51 Systems of Urban Land Policy HK Leasehold Land Policy high land price, short tenure, premium system Monopolized Money Supply BANKS / HKMC Negative Real Interest Rate Monetary Policy - Currency peg High Income, Low Expenditure Monopolized land supply Systems of Urban Land Policy HK Economic Efficiency Policy and Regulations Enforcement Infrastructure and amenity subsidized by land grants Housing Policy high price, high dense, profit from concessions Monopolized housing supply Discretions and Concessions PRH (by queuing) HOS (by lucky draw) Private Housing Market Self-funded Development Control Policy Discretionary & Market Oriented 51

52 The End comments are welcome. Enquiries to: 52

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