Land monetary value has ever been concerned by people in Hong Kong. For the authorities, the high and low of the monetary value affect the authorities gross. For general people, land monetary value can act upon the level monetary value, hence affects their affordability to hold a house. For speculators and developers, the land monetary value can hold a effect on their income through investing. During the high tide of the land monetary value, it creates a batch of wealth to some of the people, every bit good as the authorities, through merchandising of land. It is regarded as one of the economic pillars of Hong Kong.
The monetary value of a land is frequently determined by demand and supply, a simple economic theory. The demand is controlled by the quality of the land, such as transit, position, size and distance to locally unwanted land usage ( Lau, Giridharan, & A ; Ganesan, 2005 ) . The land with better handiness with good scenery can be sold with good monetary value as every developer wants to develop it to construct houses to do net income. The demand is great but the supply of these sort of good quality land is limited it will force up the monetary value. Vice versa, land which is distant and close to locally unwanted land usage will sell at a lower monetary value as people are non willing to remain at that place.
Although physical factors would impact the high and low of the land monetary value, human factors can non be ignored. Since the British authorities, it has adopted a ‘high land-premium policy ‘ . The aim of this policy is to sell more land in a higher monetary value when the economic system is good, to guarantee higher economic benefit, instead than sell it to run into population growing. It guarantees the authorities gross so that it can supply instruction, wellness attention service, lodging and other services to the populace. The people in Hong Kong by and large welcome to this policy ( Chen, 2010 ) . After the reunion with China, the authorities of HKSAR continue to follow this policy as a major beginning of the authorities ‘s gross.
After the economic recession in 2002, the Hong Kong Government had stopped selling the authorities land to the developers, in order to stabilise the economic system until the mid of 2004. However, without the land supply from the land sell of the Hong Kong authorities, the land developers have limited land to construct houses ( Wang, 2004 ) . Even though the authorities has resumed land selling since 2004, the supply of land can non run into the demand of the developers. The land monetary value and besides the level monetary value in Hong Kong ( which two of them have a close relationship ) start to turn up steadily since so.
Figure 1 Land sold at HK $ 1.63b for the site at 3 and 5 Ede Road ( Source: HK Gov. News )
In late 2008, an ‘economic tsunami ‘ swiped across the universe. The US authorities has adopted ‘Quantitative Easing Monetary Policy ‘ ( which conversationally means publishing more bank notes ) to salvage the economic system from fall ining. The policy has a great consequence to universe economic system. A immense sum of ‘Hot Money ‘ in the universe is created for speculators to put ( Wong, 2010 ) . Some of the ‘Hot Money ‘ is invested into the belongings market in Asia. In China, the land monetary value and level monetary value has been boost up significantly by the speculators in these two old ages. In Hong Kong, the site at 3 and 5 Ede Road were sold at about HK $ 18,000 per square pes ( around HK $ 580,500 per square meter ) in October 2010, which breaks the monetary value record in Kowloon residential market ( Liu, 2010 ) .
With such a high monetary value, it is questionable whether the land deserves the monetary value or merely because of guess. This is the chief ground to do me interested to hold a research in associating this subject.
This research aims at happening out physical factors and human factors, which one has higher burdening in impacting the land monetary value in Hong Kong by utilizing GIS-approach. The first portion of the research would measure how the physical factors and human factors impacting the land monetary value.
The 2nd portion would happen out how the land monetary value is manipulated by the physical and human factors. In add-on, the research is traveling to analyze the grounds behind why the physical factors or human factors has a higher weighting ( greater influence ) . The research is traveling to include some instance surveies of land auctions in Hong Kong in recent old ages as illustrations, to explicate the relationship between land monetary value and the factors. It is indispensable to understand the factors because they have played a important function in explicating the land monetary value.
The 3rd portion, which is the concluding portion of the research, is traveling to hold an drawn-out treatment on the effects of ‘high land-premium policy ‘ to the society of Hong Kong. The authorities has adopted ‘high land-premium policy ‘ since the British Government, as mentioned before, in order to sell the land at a higher monetary value to back up big authorities outgo. This policy so helps the authorities to hold more money to supply benefits to the society, but every coin has two sides, negative effects can non be ignored. This research is traveling to happen out the disadvantages of this policy every bit good.
Research inquiries and Premises
The nucleus of the research inquiry is whether the high land monetary value in recent twelvemonth deserves the monetary value ( physical factors ) or merely because of guess ( human factors ) . The research inquiry will be divided into the undermentioned parts for item treatment. The undermentioned inquiries follow a inquiry word.
The first 1 is to place what physical factors and human factors are lending to the land monetary value. Without place them, the research can non do ratings to the factors and their weighting. The factors would be referred to the literature and the world of Hong Kong.
The 2nd inquiry is how make the physical factors and human factors impacting the land monetary value in Hong Kong? My premise: physical factors still have a higher weighting in land monetary value, no affair how human factors manipulate or speculate. In other words, human factors can non do a profitable monetary value for a bad land.
If physical factors have more consequence on land monetary value, which one has a higher part to the land monetary value in Hong Kong among the physical factors? My premise: transit is the major factor. This is because the
Similarly, which human factor has a higher part to set down monetary value in Hong Kong? My premise: the authorities factor is the major 1. It is because the authorities is the 1 who have land modesty to sell. It can act upon the monetary value by commanding the demand and supply. Furthermore, the authorities can suggest some steps, such as jurisprudence, to enforce controls or limitations to developers in developing the land.
Presently, the Hong Kong authorities adopts ‘high land-premium policy ‘ as the chief policy to sell the land at a higher monetary value. The 4th inquiry, which is an drawn-out treatment, will be why the authorities follow this policy? Does ‘high land-premium policy ‘ bring positive impacts or frailty versa to the society of Hong Kong? My premise: it brings positive impacts. This is because the authorities budget from land merchandising is important every twelvemonth.
These low-level research inquiries are of import in discoursing the nucleus inquiry: whether the high land monetary value is merely because of first-class physical factors or merely because of guess. The reply will be revealed in the consequence portion of this research.
Definition of survey country
Figure 2 The alleviation of 18 territories of Hong Kong
The survey country of this research focuses on the land of the Hong Kong Special Administrative Region ( HKSAR ) . The HKSAR is located at the southern portion of People ‘s Republic of China. With an country of 1,140 square kilometers, it has a population around 7 million ( Hong Kong Information Services Department, 2010 ) . The clime of HKSAR is sub-tropical with one-year temperature 23.1 grade Celsius and one-year rainfall around 2400 millimeter ( Hong Kong Observatory, 2010 ) .
The alleviation of Hong Kong is hilly with limited level land along the sea. About tierce of the land in Hong Kong is hilly, coercing the authorities to take the incline and reclamination to increase level land for development ( Au, 1998 ) . Therefore, land resource is a cherished in this small country with many people populating in. It is one of the grounds why the land monetary value is high in Hong Kong.
For economic facet, the research can uncover how physical factors and human factors, in certain extent, affect the land monetary value and which of them weights heavier. Therefore, the research helps us to understand the mechanism of the land monetary value preparation.
For societal facet, it can besides understand how the authorities and speculators influence the land monetary value. When they influence the land monetary value to increase to an unreasonable or alarming degree, it has a higher hazard of making ‘bubble ‘ . When the bubble explosion, it can make black consequence to the society. Therefore, it is of import that the populace should understand whether the flats that will be built on that land in the hereafter, are deserving to purchase or non. This is one of the replies which the research could state.
Furthermore, it can assist us to understand the pros and cons of the ‘high land-premium policy ‘ , which will be discussed in this research. This policy is related to every people in Hong Kong as it can impact the authorities policy.
hypertext transfer protocol: //property.singtao.com/columnist_pen/columnist_content.php? id=300 & A ; columnist_id=3
The literature reappraisal would dwell of several parts. First it defines the keyword of the research rubric. Second it explains how the land monetary value formulates. Third it discusses the factors impacting the land monetary value. Fourth it traces the current authorities policy for selling a land. The concluding portion identifies the cognition spread.
Definition of a residential land
The first portion is the definition of the land. The simple definition of ‘land ‘ is the solid land without covered by H2O ( Oxford English Dictionary ) . However, the jurisprudence of Hong Kong has a wider definition that land can mention to both covered and without covered by H2O. In add-on, ‘land ‘ specifically refers to a edifice erected on a piece of land ( Department of Justice, 2005 ) . As this research is concentrating the state of affairs in Hong Kong, it uses the definition of the jurisprudence in Hong Kong to ease misinterpretation. For ‘residential land ‘ , it refers to a land is used for building homes for occupants ( Evert, 2010 ) .
The features of land can be identified into three chief classs, which are physical, economic and institutional facets ( Shilling, 2002 ) . For physical features, land is physically immovable by human and it is fixed to a geographic location. To do an illustration, Hong Kong is located at southern China, it can non be moved to northern China. Land can non be destroyed because it is a infinite. The things on the land surface can be destroyed but the destructed surface is still at that place. Finally, no two lands are the same. Even though two lands are really similar, differences can be found in footings of alleviation, micro-climate, size and form. Therefore, this makes every land is alone, and therefore every land has its ain monetary value.
From the above physical factors, it leads to the undermentioned economic features. The first is scarceness. As the Earth has a defined surface country, the land supply is changeless and can non be increased or reduced. This causes limited supply of land, which can be reflected by the monetary value. In Hong Kong, land is scare. In order to increase the living country, high rise edifices are constructed to increase surface country vertically. That is the grounds why a big population can remain on a little piece of land.
What is bid-rent mechanism ( What and How )
As mentioned antecedently, one of the economic features of a land is the competiveness. The proprietor of the land sells the land to the purchaser who can offer the highest monetary value among the purchasers, presuming that it is a free market and everyone is economic adult male.
The bid-rent mechanism can be
land rent refers to the payment of a testimonial to the land proprietor.
Physical factors impacting the land monetary value ( What and How )
The Centre of the metropolis, train or metro Stationss, major roads, schools, Parkss, and the seashore