Approximately 4% of the private buildings in Hong Kong are older than their design lives of 50 years. In addition to the engineering factor, the lack of timely maintenance and proper management has led to a serious problem of building dilapidation in the old urban areas. On account of the high-rise high-density urban setting in Hong Kong, the problem has engendered severe safety and health hazards for the local community. Although different ways of urban renewal or regeneration exist to revitalize the urban environment, it appears that redevelopment is most frequently used. However, the speed of dilapidation would probably exceed the economy’s capability of absorbing redevelopments. In addition, redevelopments have detrimental effects on the social fabric and create a large volume of demolition and construction waste that greatly surpasses the current landfill capacity in Hong Kong. A sustainable strategy for urban renewal is, therefore, urgently needed. This research aims to establish an existing...

The paper examines how building height is determined in the absence of building height regulatory restrictions. A model is developed for determining optimal height using simple neo-classical economic analysis; this is then tested using empirical data from Hong Kong. The results show that the observed building heights are consistent with the optimal height predicted by the model. In addition, it was also found that the point of optimality varied positively with the quality of the external environment. An important practical implication is that town planners and policy-makers can make use of the model as a benchmarking tool to assess and quantify the effect of imposing or relaxing height restrictions.

This is an empirical study on the pricing of two vertical property attributes: floor level and building height. Floor level is the vertical location of a unit in a multi-storey building; the extra price paid for a higher floor level is labelled a floor-level premium. Previous hedonic price studies unequivocally showed that the floor-level premium is positive, but they were silent on whether its magnitude varies with floor levels and with buildings of different heights. Indeed, building height is a feature of a building, not its constituent units, so it is not clear whether building height alone should affect the units’ prices. Based on a sample of highly homogeneous housing units in buildings of varying heights, we found that (1) the floor-level premium was not constant, but diminished as floor level increases; (2) there was no significant difference in the pattern of the floor-level premium between high-rise and low-rise buildings; and (3) there was a positive and significant premium for units in low-rise buildings over those in high-rise ones. These findings can help developers determine the optimal height and shape of their development.