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Title: The effect of urban redevelopment on retail shopping property values : a case study in Hong Kong
Authors: Jayantha, WM
Chun, MC
Keywords: Neighbourhood environment
Rental property price
Shopping property
Issue Date: 2015
Publisher: Routledge, Taylor & Francis Group
Source: International journal of urban sciences, 2015, v. 19, no. 3, p. 379-399 How to cite?
Journal: International journal of urban sciences 
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.
ISSN: 1226-5934
DOI: 10.1080/12265934.2015.1095111
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