Synergizing Property and Infrastructure Development: Hong Kong Experiences

Transcription

1 MASSEY UNIVERSITY PROPERTY FOUNDATION LAUNCH, AUCKLAND Synergizing Property and Infrastructure Development: Hong Kong Experiences Prof. Bo-sin TANG Department of Urban Planning and Design The University of Hong Kong 4 October 2018

2 What is well known about Hong Kong?

3 Key Points: Hong Kong Rugby Sevens Expensive and Unaffordable Housing Hong Kong ranked world s most expensive housing market for 8 th consecutive year

4 Global Housing Indexes Source:

5 Ultra High-Density City British Colony (1841 Jun 1997) China s Special Administrative Region (since 1 July 1997) Total area: 1,104 sq.km. Population: 7.41 million Density: 6,700 persons/sq.km. Source: HKSAR Government

6 24% of territory is urban/built-up land Source: Planning Department

7 40% of territory is Country Park Source: Hong Kong SAR Government

8 Financial & Business Services Hub 4 th world s largest forex trading centre 4 th largest stock market (in Asia) 6 th world s largest banking centre 7 th world s largest trading entity 11 th largest exporter of services(2017) Four Pillars: Proportion of GDP Trade and logistics Financial services Professional and other supporting services Tourism service Source: Census and Statistics Department

9 Efficient (and Harmonious) City

10 Public Transit Dominated Rail 49.1% Buses 34.9% Minibus 13.7% Others 2.3% Source: MRTC 2017 Annual Report

11 Rail Transit-oriented Development Land Use Source Planning Department Floorspace within 500m of MTR Station Commercial/Office 75% Industrial/Storage 46% Others 46% Residential 43%

12 Rail + Property (R+P) Development Model, Hong Kong

13 Funding Gaps Capex: High capital cost to build railway Opex: Government subsidizes railway fares Picture source: World Bank. (2013). Planning, connecting, and financing cities now: priorities for city leaders. Washington D.C.: World Bank, p. 30.

14 Value Capture Railway alone has extremely low yield. How to capture the benefits on real estate generated from improved accessibility. MTRC: Contribution to Operating Profits, ROI to Railway Corporations in Metro Tokyo: Data source: MTR Annual Reports. Source: Cervero, R. (2008). Sustainable Transit Finance & Urbanism, Presentation at MTR Seminar on Sustainable and Integrated Planning for Railway, Hong Kong, 25 Nov 2008.

15 A Profit-Making Business Data sources: MTRC Annual Report 2017

16 Financial Returns to HK Government Government set up MTRC in 1975 Public listing in 2000 Government remains as a majority shareholder Total values to Government: Land Premium (since 1975) Market Cap (as of 31 Oct % shareholding) Cash Dividends (since 2000) HK Dollars ($) 97.9b 135.3b 15.2b IPO Proceeds 10.5b *Excluding increasing land premiums and property rates along metro corridors Less: Govt Capital 32.2b Total * 226.7b Data Source: MTRC

17 How to explain the success? Source:

18 An Institutional Model Hong Kong Model

19 R+P Development Project Cases

20 Source: Ho, T.H.K. (2011). Railway and property model MTR experience. BRE Advanced Lecture Series. The Hong Kong Polytechnic University, 12 April 2011.

21 Key Points: Government s Land Grant and MTRC s master planning of development nodes Kowloon Station: Land Area: 13.5 hectare; 19 towers accommodating a 118-storey tower of 232,000 sq.m. prime office, a deluxe hotel and observation deck Shopping centre of 82,750 sq.m. ; 6,400 housing flats, 5,600 carparks, PTI Downtown check-in centre, Airport Express Station and local metro station

22 Kowloon Station

23 Area: 5.4 ha. Tsing Yi Station Residential: 12 Blocks 245,700 sq.m units Commercial: 46,170 sq.m. 920 CPS 4 years

24 Airport Express Mall Mall Local Line

25 All-weather Connectivity : Door-to-Mall, Mall-to-Station

26 Future Challenges

27 Ageing Population Source: Planning Department, HKSAR

28 Where to find new land supply? Source:

29 Source:

30 Other Issues: Conflicts between development and nature conservation New development areas encounter oppositions Income inequality and social polarization Increasing urban density brings environmental threats Capacity and reliability of strategic infrastructure

31 Thank you! Prof. Bo-sin TANG Department of Urban Planning and Design The University of Hong Kong Acknowledgement: Findings in this presentation come from research projects sponsored by the Hong Kong Research Grants Council (Project No and ).