Spatial determinants of land redevelopment in the urban renewal processes in Shenzhen, China

Abstract

Urban renewal has become an essential part of the ongoing urban development in China. This study provides a citywide analysis on the spatial determinants of land redevelopment activities in the urban renewal processes in Shenzhen, China. Based on the concept of rent gap and a perspective of transaction costs, a conceptual framework is developed to understand land redevelopment behaviors and analyze how location factors, land property rights, land use status and urban planning collectively affect land redevelopment outcomes. Empirical analysis is conducted based on logistic regression models with unique parcel-level data of all urban renewal projects in the entire city of Shenzhen and in special economic zone (SEZ) and non-SEZ areas. This study shows that urban sites with high land rent gap levels and low transaction costs are more likely to be redeveloped earlier. Aside from location factors, land property rights, land use status and urban planning all have a significant influence on the spatial variation of land redevelopment activities. These factors have varied effects on land redevelopment in the SEZ and non-SEZ areas due to the institutional differences and development conditions in these two areas. The research findings suggest the need for further policy considerations to better guide land redevelopment toward sustainable development. Redevelopment policies and regulations should also consider the dissimilar redevelopment conditions of different regions.