Organic Real Estate Planning and
Development
Stephen Chung
Managing Director
Zeppelin Real Estate Analysis Limited
August
2005
Recently your humble author has read an article in the New York Times
dwelling on the concept of ¡¥eminent domain¡¦ and its use by some city
mayors in the USA to assemble privately held land for subsequent
macro-scale private real estate developments (by real estate developers)
instead of public projects such as roads and highways. The writer
questioned whether such practices are fair and whether such macro-scale
developments are really beneficial to cities. He cited Portland as an
example which CBD is now void and lifeless after office hours, and that
some cities now face the challenge of having to entice formerly evicted
small businesses and residents back into such city centers.
This
article reminded your author of his college days when once professors of
urban planning urged us to take photos of ¡¥places¡¦ that we thought to be
reflective of Hong Kong. If memory serves me right, most of us took pictures
of the (then) prominent Grade A office buildings (mostly in Central) and so
on. While this was understandable, our professors asked why none of us took
pictures of small street scenes, wet markets, tai-pai-dongs, and the like,
which showed how common folks thrived. We learnt the meaning of ¡§human
scale¡¨ and ¡§organic growth¡¨ in architecture and urban planning terms.
Using the
above, there are broadly 2 types (ends) of urban landscape: (a) big macro
almost monumental building blocks which are in many cases the result of
¡¥town plans¡¦, and (b) small scale streetscape and developments which are
likely to have evolved ¡¥organically¡¦. Each type has its pros and cons and
most sizable cities would contain both types. Nonetheless, it seems quite a
few cities, especially ones associated with developing economies, and not to
mention quite a few city governments, tend to favor the former i.e.
large-scale urban development projects covering large tracts of land and
involving several millions of square feet in floor space. This is quite
understandable yet may produce the kind of lifeless environments (after
dark) that other cities now dread. The following guides may help avoid such
problems:
A)
Big does NOT necessarily mean Wastage = provided there is sufficient
demand and the general ability to pay (in terms of rents etc) for the use of
such facilities and properties, otherwise a white elephant may be born. One
mistake many developing cities in developing economies commit is to copy
outright what had been done in other (Western) cities without considering
whether the volume, design, and scale are suitable.
B)
Small streetscape elements incorporated into big projects = e.g. the
¡§Shing Tian Di¡¨ in Shanghai which is quite a big development project yet the
developer had sought to incorporate many small design and planning features
to give the place a more proportionate human scale with thriving street
level interests.
C)
Architecture is NOT just form, the tangible bricks and mortar, or
geometry, the ¡¥design concept¡¦ (or even philosophy) counts as much =
many developing cities seem to like copying the design of buildings and
complexes that exist in Europe or the USA, and while some had been done
successfully and tastefully, others have only copied the form but not the
spirit behind. For instance, seeing a Roman fountain in Rome could be an
enlightening experience, but building an exact one in an Asian city (real
estate complex) could be somewhat ¡¥out of place¡¦.
In summary,
your author does not mind (in fact likes) macro-scale projects, provided
there is demand and the design talent to develop them competently.
Note* = Hong
Kong real estate prices dropped BY (not to) almost 70% from the 1997 peak
levels to the mid 2003 troughs. Prices have since recovered some 60% on
average. This steep drop was in part due to the HK$ to US$ peg (HK$7.78 =
US$ 1.00) but that alone could not have explained the whole story.
Notes:
The article and/or content contained herein are for general reference only
and are not meant to substitute for proper professional advice and/or due
diligence. The author(s) and Zeppelin, including its staff, associates,
consultants, executives and the like do not accept any responsibility or
liability for losses, damages, claims and the like arising out of the use or
reference to the content contained herein.
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