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Gfa Hypothesis Model - An Alternative Model to Evaluate the Trend of Redevelopment in Hong Kong

Author/s: Eddie Hui

Date Published: 1/01/2004

Published in: Volume 10 - 2004 Issue 3 (pages 375 - 392)

Abstract

This paper investigates the trend of redevelopment in Hong Kong by identifying and examining the factors affecting the decision to launch a redevelopment project. Empirical data from Western Hong Kong Island during 1980–2001 is used to identify the characteristics of past redevelopment projects. Such data also reveals that there is no obvious relationship between the fluctuations in the property price/rent and the rate of redevelopment. As a result, this paper will mainly focus on the supply side factors. We make use of a GFA ratio to decide the feasibility of a redevelopment project. We further analyse how the characteristics of the existing site affect in GFA ratio (or the profit level). This study provides insights for the government, as well as private developers that may help them consider redevelopment projects.

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Keywords

Gross Floor Area - Hong Kong - Property - Redevelopment

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