Search results

Industrial land renewal is a significant constituent of urban environment and sustainable development. Most implementation in planning of renewal of industrial land has been mainly conducted at the site level of industrial zones or parks and the larger scale of township planning deserve further attention in China. To fill this gap, this paper aims to investigate the implementation of industrial land renewal for a whole urbanized area under the township master planning.

This study introduces a progressive approach to identify and evaluate the renewal of industrial land in township master planning to move toward a more practical understanding of industrial transition. The authors chose a typical industrialized town, Lijia in Changzhou City, under the development model of “Southern Jiangsu” to explain the measurement and assessment framework to identify and evaluate the renewable industrial land. Synthesizing the idea of sustainable development, the authors investigated the renewable industrial land with an econometric model including multiple-indexes of economic, social and ecological aspects, field observations and depth interviews.

The analysis demonstrated the spatial heterogeneity and complex generous structure of industrial land renewal in developing countries. It pointed out the major responsibility of enterprises as main industrial land users and indispensable responsibility of government and society. Following the idea of organic concentration and avoiding one-size-fits-all kind of deal, the master planning of Lijia emphasized the connection of industrial land and the combination of market force, social force and government regulation.

With original data and discussion, the authors provide more scientific renewal strategies for planners in sustainable development.

In this research, the purpose of this paper is to assess the relative pricing behavior for land in Beijing, China. The paper sees this as important for three core reasons. First, China has a strong growth economy but is still in many ways an undeveloped country and thus the paper do not have significant data about asset pricing behavior there. Second, China has not traditionally had a market-based land and property transfer system – thus, it is interesting to assess how prices are determined relative to typical market expectations. Third, the authors have extensive evidence on pricing behavior in the USA and Europe but little such evidence on China – are the same variables important in land pricing in China and are there other unique local variables.

This paper analyzes prices of non-industrial and industrial land separately using a comprehensive data set and a semi-parametric framework. The data and flexible model specification allow the hedonic price coefficients to be estimated more accurately.

The key results are that pricing behavior in general follows the traditional expected variables as determined by size, planning use, location and other neighborhood characteristics. However, the authors also find that land prices are associated with buyer characteristics; for example, foreign investors pay less than local investors.

The study fills the gap in the literature in two ways. First, this paper analyzes prices of non-industrial and industrial land separately using a comprehensive data set and a semi-parametric framework. The data and flexible model specification allow the hedonic price coefficients to be estimated more accurately. Second, and more importantly, the authors find evidences that land prices in China are determined by both market force and “Chinese characteristics.” The land market, although established only recently, is at work. In line with the literature, determinants such as size and planning uses are found to be important in determining land prices.

Illegal changes of use in aged industrial and residential buildings is now a prevalent problem in Hong Kong. This research aims to develop a strategy for an effective and efficient control of illegal land use in a highly dense environment, with high rise buildings in multiple leasehold ownerships.

Multiple cases were qualitatively analyzed, based on documentary analysis of the court proceedings.

In Cases 1 and 2, lease conditions for restriction to industrial purposes on aged industrial buildings were found to be obsolete and not economically viable, thus resulting in illegal conversion of the premises for commercial use. Cases 2 and 3 showed that ambiguity in user clauses in land leases could lead to illegal changes of use from industrial or residential to commercial activities. Most importantly, Cases 1 and 3 demonstrated that limited resources for lease enforcement are the fundamental cause of the problem. Cases 4 and 5 proved that property managers could take effective legal action against changes of use in buildings with multiple ownerships.

The results of this study are derived from five typical cases in Hong Kong, but they form a baseline upon which further research can build to test their significance in many other settings. Ultimately, a more robust strategy can be developed for ensuring an effective and efficient control of illegal land uses in the leasehold system for Hong Kong and for those countries with a similar tenure system.

A total economic and management strategy should be implemented by the government. The land management system should work in partnership with private property managers which are empowered under the Deed of Mutual Covenant (DMC) of multiple occupied buildings to take instant action against individual owners for breaches of lease conditions. The system should also be more flexible to expand the scope of new uses for aged industrial premises, allow affordable premium for lease modifications, as well as review and clarify any ambiguous user clauses in the related land ordinances.

The public should be educated that it is important to seek approvals and consents from the government prior to making any changes of land use. The government should also establish a housing policy to provide sufficient affordable housing for the lower income group so that illegal sub‐divisions on buildings for residential purposes can be eliminated.

The improvement measures identified can effectively enforce compliance with lease conditions, which in turn can reduce the enforcement transaction costs, ensure efficient allocation and use of land in the leasehold system, and maintain building safety.

The paper aims to quantitatively investigate vacant industrial land valuation accuracy in China, given the importance of the industrial market as an underlying pillar to promote urban growth especially in emerging economies.

In China, the government formulates a Land Benchmark Price (LBP) to serve as a price reference point to sell land rights. To gain an in-depth understanding of the valuation practice by LBP, this paper uses correlation analysis to investigate the varying dynamics between the transaction-based prices and LBP appraisal-based estimates. Furthermore, a margin of error examination investigates the distortion in LBP land appraisals, with an amended LBP presented to improve the accuracy of the current LBP method.

Different influencing factors are identified to impact the actual market transaction prices and the LBP construction, leading to a large discrepancy in industrial land appraisals. A systematic problem is recognised that the construction of the LBP follows urban bid curve theory, whereas the land transaction prices do not, demonstrating that an urgent LBP update is needed to capture the market dynamics for industrial market.

The paper sets out discrepancies in valuation accuracy surrounding the application of the LBP valuation approach in China. This has practical implications for valuers in terms of raising their awareness of the deficiencies in the approach and the pitfalls they need to guard against in their appraisals. It also has implications for developers and investors who rely on valuer appraisals to assess the viability of land purchases; hence, they need to express caution in the appraisal advice sought. Finally, the results demonstrate to the standard setters how they need to modify the LBP equations to better capture market dynamics.

The paper examines valuation accuracy in transitional economies, through valuation differentials between appraised price and the transacted price. The value of the work lies in the analysis of the fundamental differentials between market price and appraised value, which is of importance to investors/developers, practicing valuers, as well as government officials responsible for setting the valuation standards.

What is the relation between the land system with Chinese characteristics and the country's high-speed economic growth in the past decades? There is a lack of rigorous academic research based on the general equilibrium theory of macroeconomics on this issue.

By building a multisector dynamic general equilibrium framework with land system, this paper explores how the land supply mode with Chinese characteristics affects China's economic growth as well as its transmission mechanism.

This paper confirms the importance of land system with Chinese characteristics in explaining the mystery of China's high-speed economic growth. Counterfactual analysis shows that if China adopts a land system similar to that of other developing countries, GDP will drop 36% from the current level under the baseline model.

As the industrial sector shrinks relatively and the output elasticity of infrastructure decreases, this inhibitory effect will become more apparent. China should improve its land supply mode, especially expand the supply of commercial and residential land and reduce the cost of land in the service sector. This can promote better economic development in the future and thus improve household welfare and the structure of aggregate demand, replace “land-based public finance” and thus inhibit the “high leverage” risks of local governments.

Option to review land rents to prevailing market rents and option to renew leases for another term are two important options embedded in the public industrial land leases in Singapore, managed by the Jurong Town Corporation (JTC). The land rents of JTC leases are reviewed every year subject to a cap on the land rent increase. The rent cap, which is historically lower than the prevailing market growth rate, widens the gap between the contract rent and the prevailing market rent as the lease progresses. This creates disincentives to the lessor for not exercising the rent review option, because the option is in‐the‐money. The rent gap, on the other hand, is also translated into substantial profit rents for lessees who hold onto the leasehold interests of industrial lands. By assuming two different probability distributions for the ex‐ante prevailing market rents, the profit rents were simulated to derive at the values of a hypothetical 30‐year lease, which range from US$47.93 (S$86.45) per square meter (psm) (Sungei Kadut, Kranji) to US$236.05 (S$425.74) psm (West Coast Highway). Based on these simulated 30‐year leasehold values and assumptions of other input parameters: equated yield (e = 10 percent), risk free rate (R_f = 4.52), volatility of leasehold value (σ = 15 percent), term of lease (T = 30 years) and rental growth cap (g = 7.6 percent), the premiums for the lease renewal options were estimated to be in a range of US$4.55 (S$8.21) psm to US$22.26 (S$40.15) psm.

The purpose of this paper is to demonstrate how the specification of hedonic pricing models can be improved by using insights generated from qualitative research. In doing so, it seeks to address one of the main problems in the specification of hedonic models, namely that theory yields little guidance in the selection of the characteristics that should be included on the right-hand side.

Building on the behavioural tradition in real estate research, this paper introduces a research approach that integrates insights from qualitative analysis in an econometric model of land values. The empirical segment explores the way in which asking prices of building plots for industrial purposes are determined in The Netherlands. It draws from interviews with municipal land developers, who dominate supply in this market. The information secured during these interviews relates to the characteristics considered important and the kind of information used in the valuation process. Based on these qualitative data, an econometric model is developed and estimated.

The estimation results confirm qualitative evidence that the typical developer considers only a limited number of features of the land in the valuation process and that the primary source of information in setting asking prices relates to the prices charged in neighbouring municipalities.

This paper represents a novel attempt to examine the determination of land and property values by merging qualitative and quantitative, econometric analyses.

Investigates the purchase of industrial real estate by small to medium enterprises. Using a three‐stage methodology, examined the views of a stakeholder panel, then drew a sample of 450 firms ranging from micro‐businesses to large firms and examined the importance of various factors likely to influence the attractiveness of an industrial site. A focus group comprising members of an expert panel was then convened to discuss the findings. Highlights the subjective decision‐making associated with the smaller firms in comparison with the “buying centre” objectivity of the larger firms. Owner‐managers from micro and small firms were motivated by such personal issues as the proximity of the industrial site to their home, rather than access to transport routes or freight terminals. The findings suggest that government and private sector agencies seeking to develop and market industrial land need to devote more time to understanding the needs of small firms. Also discusses implications for future research.

As a crucial institutional form established since the Chinese economic reform, the system of competitive local governments has been shaping the characteristics of China's socialist market economy to a considerable degree.

This study not only adopts the view of existing studies that attribute the economic motive of local governments to rent and consider land public finance as a means through which local governments carry out strategic investment but also attempts to further develop the view within a Marxist analytical framework.

As a result, the local governments have helped to maintain an incredibly high investment rate over a considerable period of time, facilitating the continuous, rapid growth of the Chinese economy.

This study concludes that China's local governments function as the productive allocator and user of rent in the strategic investment based on land public finance and thereby embed themselves in the relative surplus-value production initially arising from competition amongst enterprises, forming the dual structure of relative surplus-value production unique to China's economy.

The purpose of this research is to review the response of professionals involved in the letting and management of industrial buildings to the implementation of Part IIA of the Environmental Protection Act, 1990 which, has imposed a regime of “strict liability”, in terms of contamination, has implications for the owners, occupiers and managers of such properties and may be affecting rental and capital values of industrial premises. This research explores the current awareness of all parties to these changes.

The study reported in this paper examines current practices in the UK and identifies areas where changes may be required, or be desirable, in order to arrive at recommendations as to “best practice”. The work was undertaken in three phases, a questionnaire survey involving leasing and managing agents, real estate owners, lawyers and bankers; a consultation stage with representative organisations including the Royal Institution of Chartered Surveyors (RICS), the Environment Agency, British Property Federation, British Bankers Association, British Insurance Association, the Law Society and the Confederation of British Industry (CBI) and interviews with a representative sample of persons from the survey. This paper reports on the questionnaire survey phase.

The research identifies considerable variation in how professionals are responding to current environmental legislation. Many seem to leave “environmental” matters to the lawyers, or to rely on standard lease terms. The paper suggests areas for improving best practice.

The research was primarily concerned with aspects of lease management rather than with valuation but it has identified the need for further research in areas such as rent determination and assignment pricing.

The research has identified areas of practice in need of review by professionals in this field from which conclusions as to “best practice” have been drawn.