Deciphering Property Development around High-Speed Railway Stations through Land Value Capture: Case Studies in Shenzhen and Hong Kong

Abstract

Property development around transit stations has been viewed by many governments as a considerable way of financing public transportation. However, despite mounting evidence of the positive relationship between transport investment and proximate land value, the stakeholder relationship in enabling complex property–transit development has received relatively scarce attention. In this study, we analyze the railway financing strategies in two cities (Shenzhen and Hong Kong) connected by the first cross-border high-speed rail (HSR) network in China. Using a holistic power approach, this study presents power direction, power strength, and power mechanism as the critical factors for each case. The results reveal that different stakeholder relations arising from different social and institutional contexts have led to varying land value capture practices. The findings of this study contribute to sustainable railway financing in three phases: First, it unravels the relationship between railway financing and property development under the context of an intercity railway program, with the intervention of state power. Second, it sorts out critical elements in the implementation of the land value capture mechanism, especially institutional factors such as the role of the transit agency. Third, it directs a flexible development of the land value capture theory to cope with foreseeable problems such as land resource scarcity, institutional complexity, and interest divergence.

Integrating Land Value Capture Into Infrastructure Investment Planning in South Africa: A Local Government Framework

“…Literature reveals that the main challenges of all these programmes are the funding that nega vely impacts infrastructure development in SA. Gong et al (2021) emphasize that conven onal revenue resources seem inadequate to respond to the increasing need to provide infrastructure in different economies, Gong et al (2021) findings reinforce the importance of having alterna ve funding models such as LVC.…”

“…This concept is similar to Tax Increment Financing (TIF) by which approved development companies use the concept of 'value capture' to redevelop deteriorated neighbourhoods (Squires and Hutchison, 2014). Gong et al (2021) state that value created can be determined by linking land value increment with ini al investments, and the difference is the capital gains derived from public improvements. Infrastructure gives the most percep ble and tangible benefits to its users, it can be translated as value created.…”

“…As the global economy slows down, South Africa revises its public expenditure as tax revenues are nega vely impacted. The deteriora ng financial posi on of state-owned companies has put addi onal pressure on the public finances; weak economic performance and residual problems in tax administra on have resulted in large revenue shor alls (SA Na onal Treasury, 2019;2020;2021).…”

NOAH as an Innovative Tool for Modeling the Use of Suburban Railways

“…The obtained results correspond with actual topics involved in the interdisciplinary field of sustainable urban planning and transport development. Significantly, connection with heuristics used in analyses of transportation and railway systems [64,65] occurred. This aspect shows the potential of the proposed algorithm and methodology to be developed in other studies not only connected with railway systems and not only in transportation engineering.…”

The Relation Between Road Infrastructural Development and Land Value Increments in Dire Dawa City, Ethiopia

“…Several studies have found that transport infrastructure exerted a positive impact on land values; this is especially true for properties in close proximity to stations [10]. ´However, in some instances, urban transit projects could also produce negative impacts on land value usually as a result of factors such as noise, pollution or a rise in incidence of crime [21]. Analysts interested in the interaction between transport infrastructure and land value argue that areas serviced by transport infrastructure have a competitive advantage over other areas because of greater accessibility.…”