Purpose -The purpose of this paper is to examine the progress of rehabilitation and redevelopment and review the effectiveness of the Land (Compulsory Sale for Redevelopment) Ordinance (LCSRO) (Cap. 545) and proposals that influence the urban renewal process in Hong Kong. Design/methodology/approach -The study largely relies on the review of the LCSRO and the Government's proposal, and the urban renewal progress. Rehabilitation and redevelopment data was collated and analyzed to assess how effective the renewal process and the Government legislation have been in tackling the urban decay problem in Hong Kong. This study benchmarks the good practices of Singapore. Findings -The pace of urban renewal activities in Hong Kong is lagging behind its policy goal. The implementation of the urban renewal programme has not adequately resolved the serious problem of ageing buildings. The existing legislation has not been effectively attracting private sector's participation either. The proposed relaxation of the compulsory sale threshold for specified classes of lots under the LCSRO aims to assist private sector-led redevelopment. However, it is not a panacea for urban decay. Whilst the private sector's participation is facilitated, the Government should consider complementary measures, e.g. the relaxation of such criteria as the building age, plot ratio and height limitation for a more effective and efficient process, particularly in less attractive sites. A careful balance should be maintained in redeveloping different regions in the city. The Government should also be cautious about the negative externalities that might affect to the community. Practical implications -The paper identifies the implementation gap of urban renewal in Hong Kong. Practical suggestions are made to the Government and related organizations to expedite urban renewal works. Originality/value -The paper assesses Hong Kong's urban decay problem in a quantitative way. This approach has hardly been applied in a local context. It also highlights important issues relating to private sector involvement in urban renewal activities and various concerns over the proposed changes to the LCSRO. The paper will benefit local policy makers, property developers and professionals in the area. Its results will form a basis for further research on the impact of the proposals on land supply and housing prices after its implementation.

PurposeThe long‐standing urban decay problem in Hong Kong continues to receive attention from the government and concerned organisations. However, little attention is paid to the financial benefits that can be achieved after old buildings are rehabilitated. This study seeks to evaluate and quantify the value enhancement of aging buildings resulting from rehabilitation.Design/methodology/approachUsing the direct sales comparison method, the study critically examines over 80 sample buildings across Hong Kong. Residential properties with rehabilitation completed in the public sector are chosen as samples for numerical analysis.FindingsThe results show that: the capital value of the sample buildings after rehabilitation increased by an average of 35.6 percent; the overall appreciation rate of the sample buildings (35.6 percent) exceeds that of other buildings in the same district (20.8 percent); the average price increase of the sample buildings (25.7 percent after adjustment) is greater than that of Type B (40‐69.9 square meters) buildings (18.9 percent) in Hong Kong; positive growth in transaction volume is evidenced from the sample buildings in four districts; and, on average, the benefit to cost ratio of rehabilitation per unit is 10.9 and the net benefit per square foot is HK$461.4 (or US$59.2).Research limitations/implicationsThere are potential risks of error arising from the use of assumptions, price adjustments, limited sample size and data from the secondary source.Practical implicationsThe analysis is of relevance in confirming the value enhancement arising from rehabilitation and the findings provide a motive for the industry and public for rehabilitation.Originality/valueThe significance of this study is the quantification of the positive effect of rehabilitation.

PurposeThis paper seeks to examine the contributions of rehabilitation and redevelopment projects to the labour force of the construction industry in Hong Kong. Major projects from the private and public sectors were critically examined and the manpower requirements and the tangible benefits in terms of wages arising from urban renewal were forecast.Design/methodology/approachThe forecast of the expected persons to be engaged in the construction industry is based on trend regression model. Time series data of construction sites, both private and public, and persons engaged in the past ten years were forecasted for linear trend process for the next three years. From this, a reasonable estimate of man‐days to be engaged and wages to be incurred in the construction industry in the future can be obtained.FindingsThe results provide evidence that the impacts are positive. About 19.4 million man‐days and an income of HK$16.4 billion (3.8 per cent of the nominal GDP of Hong Kong in 2008) are anticipated in the short run. To meet urban regeneration needs, the Government should develop various vocational skills and enhance motivation and job search.Research limitations/implicationsThere are potential risks of error arising from the use of assumptions, limited sample size and data from the secondary resources.Practical implicationsUrban renewal works can generate more jobs. The ratio of development projects to rehabilitation works in terms of producing job opportunity by the same amount of budget is about 1 to 4.7. To meet urban regeneration needs, the Government should develop various vocational skills and enhance motivation and job search for renewal works.Social implicationsUrban renewal attracts and stimulates investment, creates employment opportunities and improves the built environment of cities. Also, public rehabilitation works can play a moderate role in stabilizing the economy and the labour market.Originality/valueThe major contributions of this paper are: the estimated labour and financial resources to undertake such renewal works; and the more significant impact of rehabilitation work identified.