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This paper examines the antipoverty effect of public rental housing (PRH) in Hong Kong based on a comparison of estimated imputed rents from PRH through regression-based and stratified rental equivalence methods. Empirical analysis shows that stratified equivalence method tended to generate a larger effect of poverty rate reduction and smaller effect of poverty gap reduction than regression-based method. The study identified a trend towards upwardly biased estimate of public imputed rent in the implementation of stratified equivalence method in Hong Kong where limited strata was available for the estimation. The development of antipoverty measures may be misguided if the stratified equivalence method is used in its current form in Hong Kong. The paper suggests that the choice of estimation method has important implications for evaluating the pros and cons of PRH from both poverty reduction and budgetary perspectives. [ABSTRACT FROM AUTHOR]

The sensitivity of housing demand to income changes has important implications for the evolution of housing affordability and the behavior of urban households. In Hong Kong, investigations into this issue have shown the increasing importance of the private rental housing market, which is regarded as suboptimal and to contribute to gentrification and inequality problems. Using microdata from four waves of Hong Kong census data between 1996 and 2011, this paper aims to estimate the income elasticity of demand for private rental housing. A permanent income model was adopted to isolate permanent income and transitory income at household level. Then, the Heckman two-stage procedure was used to correct selection bias and the quantile regression (QR) approach was used to investigate the heterogeneity of demand elasticities across different tiers of housing expenditure. The empirical results showed that the permanent income elasticities fell within a range of 0.536–0.698 and transitory income shock had a positive and significant impact on the demand for rental housing. Moreover, a U shape of permanent income elasticity across the whole distribution of housing expenditure was revealed. Households in both the upper and lower tiers were more sensitive to permanent income changes, with the higher tier of households being more sensitive to transitory income shocks. These findings not only shed light on the long-term movement and cross-sectional heterogeneity of housing demand in the private rental housing market, but also have implications for studies of the rental housing demand in other developed cities. [ABSTRACT FROM AUTHOR]

Abstract: With the expansion of the world''s population, apartment buildings have become popular, especially in metropolitan areas all over the world. Although apartment buildings could economize on the use of land, they may generate collective action problems among owners in the building management process, resulting in a “tragedy of the commons” in the urban environment. However, in the literature, there has been a lack of research that has investigated collective action problems in building management. In order to fill the gap, this study surveys collective action in apartment building management and proposes to utilize the institutional analysis and development (IAD) framework to analyze their problems. Making references to the literature on collective action and drawing from studies of common-pool resource management in particular, this paper classifies collective management actions into four categories, namely: 1) rules design, 2) rules enforcement, 3) maintenance decision making, and 4) performance monitoring. It further illustrates the application of the IAD model by empirically investigating a specific collective action—the appointment of a property management company (PMC). By using the logistic regression model for 2989 single block residential apartment buildings in 18 districts in Hong Kong, this paper will show that building condition, building location, the number of owners, and the presence of an owners'' organization each have a different impact on a property''s likelihood of appointing a PMC. The results of this paper should shed light on both collective action theory and building management. [Copyright &y& Elsevier]

Abstract: The phenomenon of protectionism in land policy has survived in the globalised age for various reasons. This case study on the destruction of racially discriminatory zoning in laissez-faire Colonial Hong Kong shows what could happen when protectionist measures are removed by the government. Approaching the reality of discrimination from economic theory of price controls, this paper argues, on the basis of the records of official speeches and writings and a small sample of post-war assignments for housing lots, that the pre-World War II segregation law was motivated more by economic protectionism in favour of Europeans rather than by any social stigma against non-Europeans or genuine environmental externalities generated by Chinese housing. The paper approaches the same phenomenon from a new perspective and with a better method. It was revealed that natural or contractual, as opposed to legal, agglomeration could happen even under written discriminatory laws that allowed a degree of inclusion for the ethnic group that suffered discrimination. This revelation was based on an examination of the ethnicity of the original owners and subsequent purchasers of all identifiable 627 housing lots on the Peak in Hong Kong for 115 years from 1876 to 1990, as found in the 421 relevant Crown Leases and 1255 assignments. These housing lots fell into 23 street neighbourhoods and could be classified by altitude. The key findings lend support to the arguments that even if the post-war colonial literature evaded or even distorted the subject, there was no true racial animosity between European and Chinese citizens because the exclusionary laws were driven by economic protectionist motives and the repeal of the laws was socially and economically beneficial for both Chinese and Europeans. [Copyright &y& Elsevier]

Abstract: Since the last two decades, public participation has become a worldwide issue as the bottom-up approach has spread across the field of heritage conservation and city planning. This paper aims to examine the problematic issues in public participation in built-heritage conservation. The paper begins by highlighting the importance of public participation in built-heritage conservation and provides an understanding of the role of public participation in decision-makings in other countries; then, it examines a theoretical framework by which to understand the extent of public participation. Two controversial cases in Hong Kong illustrate the major problem issues in public participation in built-heritage conservation. This study found that the issues include different preferences regarding what is worthy of conservation; the lack of an effective public participation mechanism and integrated heritage conservation approach in the decision-making process; the different and conflicting interests of various stakeholders; power disparity; propaganda and mobilisation of interest groups; and the lack of knowledge on heritage conservation. According to the issues identified in the case studies, corresponding policy implications and recommendations to enhance public participation are made. [Copyright &y& Elsevier]

Abstract: Governmental tolerance of illegality is a common but poorly understood phenomenon. While illegal housing is well studied in poorer cities, its prevalence and operation in rich cities is much less examined. A comparative perspective is necessary to uncover the variety of ways in which illegal housing is tolerated and regulated. This paper compares two different forms of illegal housing in two rich cities with very distinct histories: rooftop squatters in Hong Kong and basement suites in Calgary. As well as considering these irregular housing forms at opposite poles of the vertical spectrum, the paper examines the structuring forces emerging from both the top and the bottom of the social structure, and how they interact to produce the persistence of these housing types. Overlapping and conflicting interests of various groups and limits on governmental actions make toleration of illegal housing useful, in part precisely because of its provisional nature. [Copyright &y& Elsevier]

Abstract: Rapid suburbanization in Hong Kong has been driven by the government''s public housing-led new town program and interactions between the transport system and land markets. Failure to self-contain the new towns has resulted in long travel distances to employment for new town residents. This paper investigates these issues by focusing on the Tin Shui Wai new town. Commuting variables such as mode choice, travel time, and travel affordability for workers are used to measure the impacts of long travel distances and the jobs-housing imbalance on access to employment for workers. Route tests, a survey, and interviews were conducted. The results indicate that spatial mismatch and serious jobs-housing imbalance increase travel time and fare costs, and that a lack of freedom in the choice of travel mode increases transfer times during work trips and restricts the options that workers have to search for different types of jobs. Finally, the combination of a high unemployment rate and weakened social networks has caused residents to lose contact with relatives and friends, and has deterred them from seeking jobs a long distance away. This paper suggests that the government should avoid resettling a high percentage of poor households in a single new town and should focus on devising a transport policy that increases residents'' access to a wider range of employment opportunities. [Copyright &y& Elsevier]

Abstract: The complementary processes of globalization and regionalization have resulted in the proliferation of cross-boundary regions in the world since the 1980s. Existing studies have primarily concentrated at supranational paradigms or nation-based level of analysis in some specific regions, such as European Union (EU), North American Free Trade Association (NAFTA) and Association of Southeast Asian Nations (ASEAN), etc. This paper presents a salient sub-national cross-boundary region under “one country, two systems” in China, taking the Pearl River Delta (“the PRD” hereafter) and Hong Kong as a case. It argues that the PRD and Hong Kong have been evolving into a cross-boundary region, as a result of intensified socio-economic interaction between them over the past two decades. Previous studies have identified the role of Hong Kong as the largest source of foreign investment and entrêpot during the process of the dramatic economic development of the PRD in the 1980s and the mid-1990s. However, the changes of their relationship after Hong Kong returned to the Chinese sovereignty in 1997 are still poorly understood and analyzed. The paper attempts to update and fill the gap in the literature with the investigation of the transformation of the cross-boundary interaction between the PRD and Hong Kong in the post-1997 period. Particular attentions are paid to the paradigm shift and evolving patterns of the PRD-Hong Kong cross-boundary region under the unique framework of “one country, two systems”. [Copyright &y& Elsevier]

Collective actions of owners in a multi-owned residential building are not only important, but also necessary towards the effective management of the property. However, according to Olson's theory of collective action (1965), those actions may not be initiated or sustained to ensure quality management. Despite the considerable research efforts on successes and failures of owners' collective actions in the literature, little ink has been split on classifying those actions and measuring them. This paper intends to bridge the research gap. First, it outlines the boundaries of owners' collective actions in building management. Second, it classifies owners' actions into three categories, namely collective decision-making, collective rules enforcement, and collective performance monitoring. Third, it devises a method to evaluate the cooperative abilities of an owner group. Using survey data from 72 apartment buildings in Hong Kong, it finds that the cooperative abilities of an owner group vary with building age, management style, group size, owners' average income level and age level. The results of this study could contribute to better collective action theories and shed light on the formulation of a building-care culture. [ABSTRACT FROM AUTHOR]

This paper reviews recent developments regarding social housing policies in Hong Kong and the UK. Underlying the analysis is the fact that, during the last 40 years or so, both countries have been major global players in financial markets and thus pursued aggressive market-driven approaches to economic development. Notwithstanding that fact, each followed a different direction regarding housing policy reforms in the period. In Hong Kong (HK), the system of public housing provision was expanded; in the UK, the system of housing provision was scaled down. The argument being developed here is that a pro-public housing approach in HK should not be seen as a threat to capitalism in any way or measure. On the contrary, land development as well as land-originated fiscal revenues is a crucial part of HKSAR government's revenues. In the UK, this is no different. The return (through various forms of privatization) of the public housing stock (Council housing) to private hands (homeowners and housing associations) meant also to enhance businesses, in particular the mortgage and real estate markets. In both cases, there were also clear political reasons that justify developments in housing policy. The idea that Council housing served as a stage in the passage from a time when housing was predominantly provided in a largely unregulated private-rental market to a time when most people became homeowners is also discussed. This was what defined the ‘modernization’ of housing in the UK. The of ‘residualization’ was adopted to discuss the UK case. One important question is to know whether Hong Kong will follow the same path of ‘modernization’ as the UK, in the future. So far, HK has resisted; public housing has been ‘resilient’, ensured by a proper repair and maintenance policy, redevelopment and production of new housing throughout the last decades. Resilience is also granted by people's recognition and attachment to public housing and low stigmatization. More importantly, public provision of housing continues to be regarded, in both countries, as a necessary development to grant quality of life and a better distribution of income, avoiding the sharpening of social and territorial segregation, gentrification and stigmatization. [ABSTRACT FROM AUTHOR]

Abstract: Urban renewal is a significant issue in developed urban areas, with a particular problem for urban planners being redevelopment of land to meet demand whilst ensuring compatibility with existing land use. This paper presents a geographic information systems (GIS)-based decision support tool (called LUDS) to quantitatively assess land-use suitability for site redevelopment in urban renewal areas. This consists of a model for the suitability analysis and an affiliated land-information database for residential, commercial, industrial, G/I/C (government/institution/community) and open space land uses. Development has occurred with support from interviews with industry experts, focus group meetings and an experimental trial, combined with several advanced techniques and tools, including GIS data processing and spatial analysis, multi-criterion analysis, as well as the AHP method for constructing the model and database. As demonstrated in the trial, LUDS assists planners in making land-use decisions and supports the planning process in assessing urban land-use suitability for site redevelopment. Moreover, it facilitates public consultation (participatory planning) by providing stakeholders with an explicit understanding of planners'' views. [Copyright &y& Elsevier]

Abstract: In a capitalist society, public buildings are essential social assets that balance private and civic interests while providing convenience and comfort for the entire community. The performance of public buildings is remarkable as they are related to most people instead of a handful of users/owners in the private sector. Hence, architecture of public institutions occupies a central, subtle, and decisive role in the quality and the state of civility in the city. Living in compact environments, Hong Kong people always need and aspire for more acute use of public spaces. In this local context, common space and public buildings naturally form an extension to city living. As a consequence, public buildings are becoming multi-use, multi-value and multi-level. This article is a short account of the evolution and development of the public building in Hong Kong, from the early1960s to the new millennium. It considers the historic background of the modernist movement and the socio-economic setting of the city. In chronological order, the paper delineates six examples: the City Hall (1962), Town Hall in Shatin New Town (1985), Cultural Centre (1989), Heritage Museum (2000), Central Library (2001) and Wetland Park (2006). The authors present the statistical analysis of public buildings during this period and examine the cases with established criteria of public/civic buildings. Furthermore, social background and the strategies that those designs adopted are discovered and discussed. While generally following the modernist principles, the government architects in Hong Kong adopted alternative methods to respond to the increasing societal expectations along the timeline, for example, pragmatism, neo-classicism and sustainability. It concludes by suggesting the future of the city''s public buildings in the West Kowloon Cultural District in the coming decade. [Copyright &y& Elsevier]

Abstract: Public participation in the planning and design of major public infrastructure and construction (PIC) projects is crucial to their success, as the interests of different stakeholders can be systematically captured and built into the finalised scheme. However, public participation may not always yield a mutually acceptable solution, especially when the interests of stakeholders are diverse and conflicting. Confrontations and disputes can arise unless the concerns or needs of the community are carefully analysed and addressed. The aim of the paper is to propose a systematic method of analysing stakeholder concerns relating to PIC projects by examining the degree of consensus and/or conflict involved. The results of a questionnaire survey and a series of interviews with different entities are provided, which indicate the existence of a significant divergence of views among stakeholder groups and that conflicts arise when there is a mismatch between peoples’ perception concerning money and happiness on the one hand and development and damages on the other. Policy and decision-makers should strive to resolve at least the majority of conflicts that arise throughout the lifecycle of major PIC projects so as to maximise their chance of success. [Copyright &y& Elsevier]

Abstract: Sustaining declines in fertility have increasingly become an alarming issue in most of the world economies. Many governments have been making enormous efforts to alleviate such intertwined problems as falling fertility and soaring elderly dependency. What really makes fertility rates fall? Does housing price have a role (as many argue)? Most researchers addressed this issue from a demographic perspective, but have yet to fully unravel the mystery of human fertility behaviour. The paper aims to investigate the novel linkages between birth rate, housing price and elderly dependency, with the case of Hong Kong. It employs two key methods: (i) the Autoregressive Distributed Lag (ARDL) to co-integration procedure and (ii) Granger causality, to disentangle the complicated relationships, long-run and short-run. The empirical results show that a 1 percent increase in housing prices and elderly leads to 0.52% and 1.65% decreases in birth rate respectively. Besides, both housing price and elderly dependency Granger cause birth rate in the long-run. Our findings not only shed light on fertility behaviour, but also provide implications for policy change. That is particularly relevant to those economies whose low fertility situations need to be ameliorated. [Copyright &y& Elsevier]

Abstract: This paper describes the rise of the co-operative housing of civil servants and its fall during the transition of Hong Kong from a British colony to a special administrative region of the People’s Republic of China. Olson’s group theory was adopted to explain the timing of the dissolution in a context of uncertainty in the property rights of land; the terms of civil service appointments; and the housing market. The size of the ownership body and the value of the land were evaluated as factors affecting dissolution decisions. It was found that in agreement with Olson’s theory, the number of members of the body had a statistically significant positive relationship with the life (between formation and dissolution) of the co-operative body. In addition, it was also found that factors that affected the opportunity cost of maintaining status quo, including the value of the land on which the co-op scheme sits and the real option value of redevelopment, had a significant impact on the timing of the dissolution of the co-op. The implications for using Olson’s theory were also discussed. [Copyright &y& Elsevier]

Abstract: Hong Kong not only has one of the most institutionally-involved housing markets, but also one of the most developed stock markets in the world. In the meantime, the function of real estate has become increasingly important, yet increasingly vague at the same time. This paper attempts to explore the significant factors in the price adjustments of residential properties. It is found that while most market fundamentals are not significant in explaining property price movements, the roles of investment concerns and of government policy changes in assisted homeownership (HOS) are much more critical in this regard. On the one hand, real estate prices are driven more by investor demand, rather than by user demand; and residential properties are used to hedge against price risks in the stock market, instead of against inflation. On the other hand, while the upgrading hypothesis is confirmed in this study, the situation of Hong Kong turns out to be a bit different from the Singapore experience. As the production of HOS flats is suspended until further notice, the resale HOS market has managed to pull a fraction of homebuyers from the private sector. This particular finding shows that the government’s decision to suspend HOS flat production and sale in Fall 2002 has not accomplished what was intended to achieve. Instead, this leads to several implications, which are then discussed. [Copyright &y& Elsevier]

Abstract: This paper investigates the residential mobility patterns among Hong Kong’s various ethnic groups, grounded on the Spatial Assimilation Theory. The results first show that immigrants in general have contributed the most to the residential movement of Hong Kong’s populace. Nonetheless, disparities in residential mobility patterns have been observed among these immigrants. Wealthier immigrants, for instance westerners, by relocating to non-new town areas of the New Territories, show no signs of acculturation to local Hong Kong community. Also, while public rental housing has managed to relocate and gather ethnical groups, such as new arrivals from the Chinese Mainland and South Asians with permanent residence status, to new town areas in the New Territories (N.T.), the out-migration of private-sector residents from new towns to the outskirt areas of the N.T. has turned these new towns to multiethnic enclaves. For South Asians whom have yet to obtain permanent residence, they appear to have segregated themselves from the locals in urban areas and formed their own ethnic concentrations (i.e. Chungking Mansions in Kowloon). Lastly, the home-moving pattern of long-term Chinese immigrants is very similar to that of local Hong Kong residents, which can be regarded as a sign of assimilation. Policy implications derived from these findings are then discussed. [Copyright &y& Elsevier]

Abstract: Management of apartment buildings is never straightforward because of the need for collective homeowner action. Mancur Olson suggests that a rational individual will not participate in collective action which provides no positive net benefit for him or her. Based on this premise, it would seem that rationality drives homeowners to free-ride on others’ efforts and that, as a result, no collective action will take place. However, some homeowners do actively participate in housing management, and it is worthwhile to examine why some participate and others do not. Building on the wide-ranging applications of the collective interest model (CIM) in explaining political participation and environmental activism, this paper expands its relevance to the arena of housing management. The explanatory analysis which is based on the findings of a structured questionnaire survey in Hong Kong corroborates the central propositions of the CIM and provides a theoretical account of housing management activism. In brief, housing management activism is a function of beliefs about personal and group efficacy, the value of the collective good, and the selective benefits and costs of participation. These findings have far-reaching implications for the formulation of government policies promoting homeowners’ active involvement in housing management in Hong Kong and other megacities. [ABSTRACT FROM AUTHOR]

Abstract: This paper aims to test if traditional literature on both internal residential mobility and international migration hold up in explaining the driving forces behind the home-moving behaviours of Hong Kong residents to the Chinese Mainland, under a mixture of economic integrations, past connections along with present structural and identity differences. The multi-dimensionality of this behaviour, in comparison to other forms of residential movements in the literature, is shown as there is no single attribute, albeit all necessary conditions, sufficient enough to encourage such movement on its own. Instead, the cross-border residence is primarily a middle-class, middle-aged phenomenon, due to one’s past connections with Mainland China throughout his/her life course and the possession of financial resources insufficient to afford larger living space in Hong Kong yet enough to benefit from the remarkable living cost advantages on the other side of the border. It provides some directions for studying similar forms of residential mobility in the era of globalization when the functions of national borders have become more obscure than before. Implications from this residential behaviour are then discussed. [ABSTRACT FROM AUTHOR]

Abstract: The vast majority of buildings being constructed in Hong Kong today are massive 40+-storey high-rise residential building towers housing hundreds of families. Immense resources – land, material, time, labour, money, energy – have been invested in their realization. However, almost all of these buildings, including those currently under construction and on the drawing boards, are not designed with adaptability and flexibility as a design intention and will cause major problems in the future: their lack of capacity for re-activation means that their only fate is demolition, thereby consuming even more resources, producing more waste, and causing more disruption to the environment. Unless we change our mind-set in mass housing design, today''s designs will inevitably become tomorrow''s problems. This paper studies the scenario design requirements and critical dimensions of use-territories in public mass housing in Hong Kong in view of extracting useful patterns for use in future designs. Case studies of popular residential layouts currently used in Hong Kong will be used to illustrate the kind of problems the majority of the existing residential building stock will face when the need for renewal and upgrade arises. [Copyright &y& Elsevier]

Abstract: Studies around the world have shown that there is a significant correlation between young children''s development and the neighbourhood environment in which they are brought up. While the neighbourhood environment is a master set of a vast number of inter-dependent and inter-mingled variables, one particular factor, the physical land use environment sometimes tends to be overlooked. In fact, all other environmental variables work inside the framework of the land use settings as all human activities take place on and above land and certainly within some form of physical structure. In this paper, we try to provide some insights into this particular aspect by a relatively quantitative analysis. A major youth survey was carried out and views from the young people on two major aspects of land use settings are collated. In the micro-system, we examine how the physical land use system affects young people and how much they enjoy it. In the macro level, we tally their views on certain land use policy objectives and examine how much they can and are willing to articulate their views. We have found that land use environment in the neighbourhood does impose important effects on young people and they do recognise that. However, young people seem not being able to capitalize the benefits of the “routine activities” due to various reasons, and among them management of public space is a major one. In general, we feel that there is an inadequate government effort in trying to stimulate young people''s interest in contributing to the debate of urban land use policy, making most young children rather indifferent on a number of socio-economic land use issues. [Copyright &y& Elsevier]

Abstract: This paper applies a system dynamics model for the sustainable land use and urban development in Hong Kong. The model is used to test the outcomes of development policy scenarios and make forecasts. It consists of five sub-systems including population, economy, housing, transport and urban/developed land, respectively. Two distinctively different development schemes concerning urban population density are simulated by the model and the findings are undertaken to verify the model through comparison with historical data and sensitivity check. The forecast timeframe is then expanded from 40 years to 300 years, providing a simulation period long enough to observe and study the “limits to growth” phenomenon and the impacts on development potential of Hong Kong. The modelling results are directly useful to compare different dynamic consequences brought by various policies and decisions, and are thus of great significance to achieving the goal of sustainable land use. [Copyright &y& Elsevier]

Abstract: In the midst of the increasingly prominent phenomenon known as population aging, this paper investigates how various attributes, from residential to institutional, influence the housing satisfaction of the elderly people, and thus their likelihood of residential relocation. The results suggest that aged citizens either born locally or from the Chinese Mainland tend to be much more satisfied with their current residence than those with other origins. The same can also be said for elderly people who live within the Metro Area [The Metro Area includes Hong Kong Island, Kowloon, Tsuen Wan and Kwai Tsing.] of Hong Kong. Meanwhile, various institutional arrangements seem to play critical roles in improving the housing satisfaction of aged people who are either living alone, sharing a home with others of similar age, or residing with children (or grandchildren). The last one in a sense helps re-establishes the filial piety that is almost lost in modern Hong Kong society. Nevertheless, a residential mobility propensity of the pre-elderly is still confined due to the age limit which determines the eligibility for those elderly friendly schemes. Policy implications are then discussed. [Copyright &y& Elsevier]

Abstract: This paper presents a framework for investigation of the accessibility and coping behaviour of non-employed people in Hong Kong. Based on structuration theory, the accessibility of an individual is regarded as the product of their travel coping behaviour and social systems across time and space. The social systems (e.g., public transport, household responsibility) are both the media and outcome of the individual''s daily trips. Survey findings indicate that in the face of accessibility constraints from social systems, people develop various forms of coping behaviour to improve their accessibility, such as by having fewer children, living away from their elderly parents, and living in urban areas to reduce travel time and gain a normative duration for activities. The government must change social systems to facilitate these recursive travel patterns. Thus, structuration theory can be used to improve urban transport planning. [Copyright &y& Elsevier]

Abstract: The economic integration between Hong Kong and the Mainland stimulates cross-border relocation from the former to the latter. This paper examines the determinants of cross-border tenure choice decision using factors at macro-, neighbourhood and household levels. The macro-factors include labour market conditions and property cycles that affect both relocation and tenure choice decision. Differences in neighbourhood quality act as pull and push factors that trigger relocation. Household level factors reflect variation in taste and affordability as the household moves through the lifecycle. The characteristics of the supply side are also discussed as they affect the alternatives in the choice set that the household might choose from. Results from the logit estimation indicate that job-related factors have a negative impact on home ownership across the border while the opposite is true when households relocate for better living environment. The recent downturn of the local property market has led a cohort of households to develop a negative attitude towards home ownership that is being carried over to the Mainland. [Copyright &y& Elsevier]

Hong Kong has been faced with property market ups and downs for many reasons over the past 10 years or so. It once experienced shortages of housing supply, leading to prolonged escalating prices. This was followed by a downturn of housing prices since the end of 1997 and in the wake of the financial turmoil in Asia. Hong Kong people have been very concerned with the housing market situation, particularly housing prices, and consider that the problem needs to be addressed to prevent its recurrence in the future. The Hong Kong government uses its land-use planning system to address this “market failure”. Also, such a system imposes constraints on land supply and development, through various means by altering the supply of housing land. As a result, the residential property has been affected, and so is the housing price.This paper attempts to explore the impact of the land-use planning system (and land supply) on housing prices in the territory. It starts with the preliminary introduction of the planning system and a review on the previous literature on the impact of land-use planning system on housing prices in Hong Kong. An analytical model is established, followed by the discussion of the empirical findings of the impacts of the land-use regulation on land supply, housing supply and housing prices in the territory. The results in Section 7 show that the planning indicators: (i) the approval rates of planning applications; (ii) the residential floor area under planning applications; and (iii) the area of greenbelt and open space zones, have significant impact on housing prices. [Copyright &y& Elsevier]

This paper addresses a naive question: why do the new housing units in Hong Kong always leak? Conventional responses to this question, including slack construction supervision, poor workmanship, low construction cost, tight building schedule, are only superficial answers. This study addresses this question within the context of technology development and industrial organization within the house-building industry. The local building industry is notorious for its poor use of automated technology. This is reinforced by the existence of a fragmented industry that relies widely and increasingly on the use of subcontracting and procurement of labour services. Low technological applications in the house-building industry are further institutionalized by the practices of local developers, university educators and the government. This study explains why an off-site, assembly line mode of mass production of buildings cannot take off, and why the assembly work has to rely on human dexterity rather than technological precision. It is argued that the relationship between technological impediment and fragmentation of the building industry results in a vicious cycle. Unless this structural relationship is broken, poor building quality and technological backwardness will continue to linger in Hong Kong. [Copyright &y& Elsevier]