Making redevelopment viable: reduction of risks to developers by Urban Renewal Authority in Hong Kong

Lee, Mei Fun Rowena (2011) Making redevelopment viable: reduction of risks to developers by Urban Renewal Authority in Hong Kong. PhD thesis, University of Glasgow.

Abstract

The research presents the findings on developers' views of the major risk factors, risks pricing and risks management on redevelopment.

Developers bear and manage a lot of risks. Up to date, academic research has focused primarily on the normative or 'should be' aspect of developers' decisions. This study attempts to fill in the gap unravelling the behavioural aspects of their decisions that truly reflect developers' actions in the current market conditions in practice. This research makes use of research instruments such as questionnaires, interviews and focus groups, prior to the development of conjoint analysis to delve deeper into developers' trade-offs of risk factors.

Findings of the research with particular reference to the context of Hong Kong, a high density built environment, suggest profits and the uncertainty of obtaining the profits are the main factors. Planning procedures is also an important risk noting the recent amendments to the Town Planning Ordinance in Hong Kong allowing wider public
participation which in turn increase developers’ risks. State action through the quango, the Urban Renewal Authority (URA), is not a concern to developers as they prefer and can redevelop on their own without being tied up by the bureaucracy associated with partnering with URA. Other factors such as the macroeconomic and market conditions, lease aspect, land assembly, public engagement and relation with stakeholders are not significant.

The findings of the present research add to the current knowledge and understanding of how best developers should manage risks in redevelopment. As a result of such awareness and insight, it is hoped that developers would be better able to design and implement more financially viable and better redevelopment schemes. This will in the long term facilitate the pace of redevelopment in Hong Kong; and provide insights into redevelopment elsewhere, especially in high density built environments worldwide, such as New York.

The Thesis is dedicated to my dear mother and father, my Saviour Jesus Christ, those who love me and those who suffer.

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Keywords: Developers, risk factors, risk pricing, risks management, redevelopment, normative, behavioural, developers' decisions, conjoint analysis, trade-offs, risk factors, Hong Kong, high density built environment, financially viable, pace of redevelopment.
• Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management; H Social Sciences > HD Industries. Land use. Labor; H Social Sciences > H Social Sciences (General)
• Colleges/Schools: College of Social Sciences > School of Social and Political Sciences > Urban Studies
• Supervisor's Name: Adams, Professor David and Leishman, Professor Chris
• Date of Award: 2011
• Depositing User: Dr. Mei Fun Rowena Lee
• Unique ID: glathesis:2011-3397
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 23 May 2012
• Last Modified: 24 Jun 2016 13:34
• URI: https://theses.gla.ac.uk/id/eprint/3397