Hong Kong’s “Rail-plus-Property” Development

Abstract

Many Southeast Asian developing cities are facing traffic and pollution issues. In order to produce a more sustainable city, local governments often opt for developing modern public transit systems. Because of a lack of finance, developing cities are supported by international donors while also looking for self-sufficient financing approaches like land value capture mechanisms. The Hong Kong “Rail plus Property” (R+P) model is seen as a reference. This chapter stresses the advantages of such a model, points out the particularities that make this model very unique and argues that adjustments that have recently been made are distorting the original model. Hence, the R+P model appears not as evident and straightforward as its advocates would like it to be.