Recent trends in the supply of land for industrial development in Hong Kong: A case study in planned decentralization

Summary Although free enterprise remains the dominant characteristic of the Hong Kong economy, new land supply is controlled largely by the Hong Kong Government. Rather than establish a detailed system of development plans and controls, the Government has been able to achieve substantial decentralization of housing and industry through the location of new land release. The evidence suggests that industrial developers have been willing to build and industrialists to locate in decentralized areas, especially those close to the main urban areas. Furthermore, although vacancy rates are generally higher and rental levels lower in decentralized compared to centralized locations, the extent of the differences over time is not as pronounced as might be expected. Indeed, the overall strength of demand for industrial land, other than in the recent slump, has necessitated special policies to protect land for low‐density industrial users in decentralized locations. As planned decentralization approaches completion, attention is beginning to focus upon redevelopment in the older urban areas and upon the consequences of the Sino‐British Joint Declaration of 1985. Overall, recent land policies in Hong Kong offer the British observer some useful indications of the impact of government intervention in land use on existing property markets.