Rail + Property Development: Amodel of sustainable transit financeand urbanismRobert Cervero and Jin Murakami

WORKING PAPER

May 2008

Rail+PropertyDevelopment

AModelofSustainableTransitFinanceandUrbanism

RobertCerveroandJinMurakami

Authors Robert Cervero is Professor and Chair of the Department of City and Regional Planning, University of California, Berkeley. Professor Cervero teaches and conducts research in the area of sustainable transportation policy and planning. He has been an advisor and consultant on transport projects in many countries, most recently in China, Colombia, Brazil, the Philippines, and Indonesia. He is the author of six books related to transportation and land-use integration, including The Transit Metropolis (recently translated into Chinese) and Transit Villages for the 21st Century. In 2004, Professor Cervero was the first-ever recipient of the Dale Prize for Excellence in Urban Planning Research and also won the 2003 Article of the Year award from the Journal of the American Planning Association. Jin Murakami is currently a doctoral student in the Department of City and Regional Planning, University of California, Berkeley. Prior to this, he worked as a transportation planner and engineering in Yokohama, Japan, conducting work on the economic impacts of beltways and other transportation infrastructure. Jins dissertation at Berkeley will involve a comparative analysis of infrastructure in global cities of eastern Asia, including Hong Kong, Tokyo, and Singapore.

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TableofContents

PartI.Rail+PropertyDevelopmentinHongKong 1ChapterOne:MTRCorporationsRail+PropertyDevelopmentApproach31.1Introduction31.2RailwayServicesinHongKong51.3MTRCandPropertyDevelopment71.4R+P:HowitWorks101.5TheR+PDevelopmentProcess15ChapterTwo:R+PasTransitOrientedDevelopment212.1TransitOrientedDevelopmentandSustainableUrbanism212.2TODinaRegionalContext222.3The5DsofTOD232.4TODasPlacemaking262.5UrbanTODsandJointDevelopment30

PartII.AnalysisofR+P:Typologies,CaseStudies,PerformanceImpacts,andRegionalContext35

ChapterThree:R+PandStationAreaTypologies:BuiltEnvironmentsandHousingDevelopment373.1TypologiesofR+PProjects373.2R+PTypology:BuiltEnvironments373.3StationAreaTypology:HousingPatterns403.4TypologiesandRidershipPerformance46ChapterFour:CaseStudiesofR+PProjects:UrbanDesignandPartnershipArrangements514.1CaseSitesandDataCollection514.2R+PCases534.3NonR+PCases634.4CaseStudySummary:LessonsonUrbanDesign65

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4.5InsightsintoR+PPartnershipArrangements70ChapterFive:CorridorAnalysisofR+PProjects735.1GrowthandTravelAlongMTRsNewRailLines735.2CorridorComparisonsofR+PBuiltEnvironments755.3RidershipPatterns78ChapterSix:R+PandTOD:InfluencesofRidershipandHousingPrices816.1AnalyticalChallenges816.2R+P,TOD,andRidership826.3R+P,TOD,andHousingPrices88ChapterSeven:R+PinaRegionalContext1037.1VisioningHongKongsFuture1037.2GuidedDecentralization1037.3BalancedGrowth1077.4TransitPrioritiesandPedestrianization1087.5RecentandEmergingRegionalPlans109

PartIII.ComparativeExperiencesandExtensionofR+P113

ChapterEight:ComparativeExperiencesinTokyoandSingapore1158.1Geographies,Economies,andDemographics1158.2WorldClassRailwaySystems1198.3DevelopmentStrategiesandRailways1258.4RailwayFinanceandPerformance1338.5TODCaseStudies1458.6Summary162ChapterNine:LessonsandExtensions169

9.1SummaryandInsights1699.2ExtensionsoftheR+PModel171

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PartI

Rail+PropertyDevelopmentinHongKong

HongKongsprincipalrailoperator,theMTRCorporation(MTRC),hasadvancedthepracticeoftransitvaluecapturemorethananypublictransportorganizationworldwide.IthasdonesothroughitsRail+Propertydevelopmentapproach,orR+P.ChapterOneexaminestheevolutionandimplementationofR+Psinceitsinceptioninthemid1980s.TheroleofMTRCasmasterplannerofstationareadevelopmentandtheprocessintroducedtosharerisksandrewardsamongpublicandprivatestakeholdersarediscussed.ChapterTwodiscussedR+Pasaformoftransitorienteddevelopment(TOD).Throughgoodqualityurbandesignandattentiontotheneedsofpedestrians,concentratinggrowtharoundstationscannotonlyhelpfinancecapitalinfrastructurebutcanalsocontributetoplacemakingandcommunityenhancement.

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ChapterOneMTRCorporations

Rail+PropertyDevelopmentApproach

1.1IntroductionHongKongisinternationallyknownforitssuccessfulintegrationofrailtransitinvestmentsandurbandevelopment.Thecitysexceptionallyhighdensities,andthemanyagglomerationbenefitsthathaveresulted,couldnothavebeenachievedwithoutworldclassrailwayservices.HongKongisalsooneofthefewplacesintheworldwherepublictransportmakesaprofit.Thisisdueinlargeparttotheintegratedrailpropertydevelopmentmodel,orR+Pforshort.ImplementedbytheMTRCorporation(MTRC),theowneroperatorofthecityslargestrailservice,theR+Pmodelisoneofthebestexamplesanywhereofapplyingthevaluecaptureprincipletofinancerailwayinvestments.1Giventhehighpremiumplacedonaccesstofast,efficientandreliablepublictransportservicesinadense,congestedcitylikeHongKong,thepriceoflandnearrailwaystationsisgenerallyhigherthanelsewhere,sometimesbyseveralordersofmagnitude.Theowneroperatorofthetransitsystemcanrecoupthecostofinvestinginrailtransitandeventurnaprofitfrompropertydevelopment,ashasbeenthecaseinHongKong.R+PhasbeenMTRCchiefinstrumentfordoingthis.ThisreportexaminestheR+Papproachtorailwayfinanceanditslargerroleinbuildingstationareacommunitiesandshapingregionalgrowth.Asdiscussedlater,thewordapproachisusedbecauseR+Pismorethananendproductofbrickandmortaratopsubwaystations;rather,itisacarefullyconceivedprocessforplanning,supervising,implementing,andmanagingstationareadevelopmentandtappingintothelandpriceappreciationthatresults.AndR+Psreachextendsbeyondthewalkingcatchmentsofstations.ItsroleinshapingthecityandsurroundingshasgainedimportanceasHongKongcontinuestotransformfromapreindustrialcolonialsettlementtoadynamicglobalurbancenter.WiththerestructuringofHongKongseconomytowardaserviceandinformationbasedeconomy,railwayinvestmentshavegainedallthemoreimportanceinspatiallychannelingurbangrowthandrecyclingformerindustrialland. 1TheothermajorrailwayserviceavailableinHongKongistheKowloonCantonRailway(KCR).

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Thereportisorganizedasfollows.First,theR+Papproachanditsevolutionarediscussed,asameansoffinancingcapitalinfrastructure,creatingviableneighborhoodsaroundstations,andshapingurbangrowth.Next,acaseismadethatR+PrepresentsanimportantformofTransitOrientedDevelopment(TOD)aswellasTransitJointDevelopment(TJD).ConnectedtothisisR+Pasatoolforplacemaking.ChapterThreeisdevotedtobuildingandpresentingseveraltypologiesofR+Pprojects.Notably,R+Pprojectsaredistinguishedintermsoftheirbuiltenvironments,housingtypes,andridershippatterns.Also,the5Ds(density,diversity,design,distancetotransit,anddestinationaccessibility)areintroducedasabasisforclassifyingR+Pprojectsbasedonbuiltenvironments.Incarryingoutthework,itbecameevidentthatwhatwasmissingfromthequantitativeassessmentandclassificationofR+Pprojectswasinsightsintothequalityoftheurbanenvironment,bothonsiteandnearsitenotably,factorslikeeaseofwalking,aesthetics,andthepresenceofpublicamenities.Casestudieswerecarriedouttofillthisvoid,focusingonurbandesignqualitiesandwalkabilitymeasuresforR+P,nonR+Prailwaystations,andevenareaswithoutMTRservices.Inadditiontothesedesigndiscussions,ChapterFouraddressesthepublicprivatepartnershiparrangementsbehindthecasestudyR+Pprojectsfordifferentphasesofdevelopment.SincenewergenerationR+Pprojectsdifferconsiderablyfromearlierones,particularlywithregardtourbandesign,ChapterFivesupplementsthecaseworkbyexaminingexperienceswithR+PandridershippatternsalongthreedifferentcorridorsthatcorrespondtodifferentphasesofMTRexpansion:theoriginalurbanlines,themorerecentTungChunglinethatextendstoHongKongsnewinternationalairport,andthemostrecentTseungKwanOextension(focusedonredevelopingindustrialzoneswithresidentiallybasednewtowns).ThesixthChapterofthereportisdevotedtoassessmentspecifically,theinfluencesofR+PaswellasTODdesignsonMTRridershipandrealestateprices.TheridershipanalysisfocusesonthedegreetowhichR+PprojectsproducearidershipbonusatstationsandwhetherprojectsbuiltaccordingtoTODprinciplesenjoyevenalargerbonuseffect.ModelingthemanyfactorsthataffecthousingpricesinacomplexanddynamicrealestatemarketlikeHongKongsisachallengingtask.FollowupworkshouldbecarriedoutasMTRCsportfolioofR+Pprojectsexpandandarichertimeseriesisavailableforstudyingperformanceimpacts.

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ChapterSevenlooksattheroleofR+PinpromotinglargerlanduseandtransportationobjectivesfortheHongKongmetropolitanarea.ThecontributionsofR+Pinadvancingsuchexpressedplanningobjectivesasjobshousingbalance,stimulatingredevelopmentofformerindustrialzones,andincreasedpedestriantravelareaddressed.Lastly,thereportexaminesexperienceswithpublictransportfinanceandtransport/landuseintegrationintwootherlarge,railservedAsianmetropolises:TokyoandSingapore.Bothcityregionsboasthighlysuccessfulrailwayservicesthatarefinanciallysolvent,thoughfordifferentreasons.BothalsofeatureTODbuiltforms,thoughtherolesofpublictransportoperatorsinlanddevelopmentdiffermarkedlyfromHongKongsexperiences.ThereportendswithdiscussionsonkeylessonsandthepotentialtransferabilityoflessonsdrawnfromallthreeAsiansettingsHongKong,Tokyo,andSingaporetofastgrowingcitiesofmainlandChinawhichcurrentlyhaveorarecontemplatinglargescalerailtransitsystems.ThisisnotthefirstindepthstudyofMTRCsR+Pprogramme.TheHongKongPolytechnicUniversityproducedaninformativereportontheR+Pmodelinlate2004,focusingontheprogrammesinstitutionalcontext.2OurstudyaimstobuilduponthisworkthroughclassifyingR+Pprojects,probingmoredeeplytheconnectionsbetweenR+Pandridershipaswellasregionalplanningobjectives,andcomparingHongKongsexperienceswithpeerAsiancitiesinhopesofconstructivelyinformingpolicymakinginrapidlygrowingcitiesofChinaandotherpartsoftheindustrializingworld1.2RailwayServicesinHongKongHongKonghasahighlydevelopedandsophisticatedpublictransportnetwork,whichincludestwohighcapacityrailways,trams,buses,minibuses,andferries.Over90%ofallmotorizedtripsinHongKongarebypublictransport,thehighestmarketshareintheworld(Lam,2003).MTRCitselfoperatessolelypassengerrailservices.TheMTRrailwayalignmentrunsthroughthedensestpartsoftheterritorymainlytheflattercoastalareas,includingtheextremelydensenorthernshorelineofHongKongislandandtheKowloonpeninsula.Figure1.1.showsMTRCsnetworkasofmid2007. 2BSTang,YHChiang,ANBaldwinandCWYeung,StudyoftheIntegratedRailPropertyDevelopmentModelinHongKong,TheHongKongPolytechnicUniversity,2004.

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Figure1.1.MTRCRailwayNetwork,mid2007

Historically,MTRCwasoneoftworailoperatorsthatservedHongKong,theotherbeingtheKowloonCantonRailwayCorporation(KCRC).InDecember2007,thetwocompaniesmergedunderthenameofMTRC.ThismergercombinedMTRCs91km,sixraillineservicewiththeformerKCRC35kmnetwork(thatlinkedareasoftheNorthernTerritoriesunservedbyMTRwithlowerKowloon).SincethisreportfocusesonMTRCsexperienceswithR+Pprogrammeasofmid2007,allstatisticspresentedarepriortomerger.With53stations,inmid2007theMTRnetworkaveragedastationevery1.6kms,makingupofthefinestgrainedrailwaynetworksanywherenotunexpectedlygivenitservestheworldsdensestcity(exceeding55,000inhabitantspersquarekminpartsofKowloon).3In2006,MTRserved25.2percentofallpublictransporttripsmadewithintheHongKongterritory,includingthosebybus,minibus,ferries,andtrams,amarketsharethathassteadilyincreasedinrecentyears.Thecombinationofhighurbandensitiesandhighqualitypublictransportserviceshasnotonlyproducedthehighestleveloftransitusageintheworld(570annualpublictransporttripspercapita),buthasalsosubstantiallydrivendownthecostofmotorizedtravel.In2002,overhalfofallmotorizedtripsmadebyHongKongresidentswereahalfhourorless(ARUP,2003).Figure1.2showsthatmotorizedtravelconsumes,onaverage,around5percentofHongKongsGrossDomesticProduct(GDP).ThiscontrastssharplywithmoreautomobileorientedcitieslikeHoustonandMelbourne,whereupwardsofoneseventhof

3http://www.aviewoncities.com/hongkong/hongkongfacts.htm

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Cost of all journeys to the community (as % of GDP)

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GDPgoestotransportation.HongKongresidentsenjoytravelcostsavingsevenincomparisontomuchlargerglobalcitieswithextensiverailwaynetworks,likeLondonandParis.1.3MTRCandPropertyDevelopmentMTRCscentralmissionistoconstruct,operate,andmaintainamodern,safe,reliable,andefficientmasstransitrailwaysystem.4ServingaquarterofallpublictransporttripswithinHongKongandconnectingtheregionslargestactivitycentersincludingthenewinternationalairport,MTRplaysanintegralandincreasinglyimportantmobilityroleinthespecialterritoryofHongKong.Therailwayhasalsoplayedavitalcityshapingrole.In2002,around2.8millionpeople,or41%ofHongKongspopulation,livedwithin500mofanMTRstation(Tangetal.,2004).Oneinfivehouseholdslivedwithin200mofastation.

4MTRC,2005AnnualReport

Figure1.2.ComparisonofCostofMotorizedTravelasaPercentofGrossDomesticProduct(GDP)AmongGlobalCities.Source:UITP/ISTP

MillenniumCitiesDatabaseforSustainableTransport

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Clearly,MTRstationshavebeenmagnetsinattractinggrowth.MTRCandR+PMTRCmakesitclearinitsAnnualReportsandothercorporatedocumentsthatitoperatesoncommercialprinciples,financingandoperatingrailwayservicesthatarenotonlyselfsupportingbutalsothatyieldanetreturnoninvestment.Propertydevelopmenthasbeenthechieftoolforgeneratingrevenuesthatcoverthecostsofconstructingrailwayimprovementsandprovidenetprofits.MTRCsphilosophyisthatarailwayalonecannotprovideadequatecommercialreturnandonlythroughpropertydevelopmentcanthecompanyattractprivateinvestorsandremainfinanciallysolvent.Effectively,thefullyloadedcostsofpublictransportinvestments,operations,andmaintenancearecoveredbysupplementingfaresandotherrevenueswithincomefromancillaryrealestatedevelopmentwhateconomistscallvaluecapture.5Sincelandparcelsnearrailwaystationsindense,trafficchokedcitieslikeHongKongarehighlyvalued,thetransitagencycapturesthesebenefitsthroughlandleasesandsalestoprivateinterests.AsrevealedintheMissionStatementofMTRCsPropertyDivision,valuecaptureisonlypartofthegoal;creatinghighquality,viablecommunitiesandenhancingstationareaenvironmentsisalsoimportant(Figure1.3).Throughoutthe1980sand1990s,theHongKongSpecialAdministrativeRegion(HKSAR)governmentwasthesoleownerofMTRC.IntheFallof2000,about23%ofitsshareswereofferedtoprivateinvestorsonthestockexchange.ThepresenceofprivateshareholdersexertedastrongmarketdisciplineonMTRC,promptingthecompanymanagerstobecomemoreentrepreneurialandbusinessminded.TheratchetingupoftheR+PprogrammeinrecentyearsreflectsMTRCsstrongmarketorientation.However,HKSARsmajorityshareholderstatusensuresMTRCweighsthebroaderpublicinterestinitsdaytodaydecisions.Consequently,R+Pisnotonlyafinancialmodelbutalsoatoolforservingbroadertownplanningobjectives,likepromotingTOD.Today,HongKongMTRisoneofthemostsuccessfulbuildoperatemaintaintransportationsystemsanywhere,courtesyofR+P.R+P,andvaluecapturemoregenerally,ishardlyanewconcept.ItwassuccessfullyappliedintheUnitedStateswelloveracenturyagotofinanceurban

5Besidesdesigning,building,constructionandoperatingmasstransitrailwayservicesandpropertydevelopment,MTRCisalsoengagedinpropertyinvestmentandmanagement.Theseactivitiesarediscussedlaterinthereport.

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streetcarnetworks(BernickandCervero,1997).By1912,privatelandholdersbuiltinterurbanraillinesasalossleaderinovertwodozenU.S.cities,openinguplandforpropertydevelopmentthatyieldedtremendousprofits,easilycoveringinvestmentandoperatingcosts.Intodaysautomobileera,nootherglobalcityhasresurrectedthepracticeofpublictransportvaluecapturetothedegreethatHongKonghas.

Figure1.3.MissionofMTRCsPropertyDivision

BenefitsofIntegratedR+PDevelopmentMTRCsactiveinvolvementinpropertydevelopmentiswhatdistinguishesitfromotherpublictransportorganizationsworldwide.6Propertydevelopment

6 InastudyconductedbytheLegislativeCouncilofHongKong(Liuetal.,1996)onmasstransitsystemsinsixglobalcities(Osaka,Seoul,Toronto,London,SingaporeandHongKong),onlyHongKongandSingaporewerefoundtobeoperatingoncommercialprinciples.ConstructioncostsinSingapore,however,werebornebythegovernmentwhileinHongKongthemasstransitentityfullybearsthecosts.InaninternationalsurveyconductedbyBarronetal.(2001),HongKongwastheloneexceptioninrelyingongovernmentgrantsandtransferpaymentstocoverthemajorityofcapitalcosts.HongKongsonlyformofsupportistheinjectionofequitycapital;thereturnsfromhigherequitysharescoverthesecosts.

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playstwoimportantfinancialroles.Thechiefoneistofinanceinfrastructure.Notably,R+Prelievesthepublicsectorofthefinancialburdenoffloatingbondsandincurringdebttofinancerailwayexpansion.Additionally,itcreatesareadymademarketoftransitusersintheformofresidentslivingnearstations,employeesworkingaroundstations,andshopperspassingthroughstationswhogeneratefareboxrevenues.Thesearejustthedirectfinancialbenefits.Indirectly,propertydevelopmentconferssuchsecondorderbenefitsas: Improvedstationareaenvironmentsintheformofmasterplanningthat

improvescirculation,physicalintegrationofstationswithsurroundingretailshoppingfacilities,andenrichmentoflanduses,allofwhichcanfurtherboostlandvaluesandincreaseridership;

Integrationofretailshoppingintostationenvironments,generatingancillaryincomefromretailsalesaswellaspromptingsometransitriderswhopassbytopurchasegoods;and

Throughpubliccontroloflandnearstations,moderatinglandspeculationandpreventingthelandvaluebenefitsaffordedbyrailimprovementsfromaccruingtoahandfulofprivateindividuals.

1.4 R+P:HowitWorksMTRCdoesnotreceiveanycashsubsidiesfromtheHongKonggovernmenttobuildrailwayinfrastructure;insteaditreceivesaninkindcontributionintheformofalandgrantthatgivesthecompanyexclusivedevelopmentrightsforlandaboveandadjacenttoitsstations.ThesegrantsrelieveMTRCfrompurchasinglandontheopenmarket.Togenerateincome,MTRCcapitalizesontherealestatedevelopmentpotentialofitsstations.Ho(2001)describespropertydevelopmentasthejewelintheMTRCscrown.Thespecificmechanismforcapturingrailsvalueaddedisasfollows.MTRCpurchasesdevelopmentrightsfromtheHongKonggovernmentatabeforerailpriceandsellstheserightstoaselecteddeveloper(amongalistofqualifiedbidders)atanafterrailprice.7Thedifferencesareoftensubstantialandare

7TheHongKongSpecialAdministrativeRegionownsalllandintheHongKongterritory.Privateindividualsandorganizationscanonlypurchase50yearleasesthatgrantsexclusivepropertydevelopmentrights.

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abletocoverthecostofrailwayinvestments.8TheHongKonggovernment,themajorityshareholderofMTRC,seedstheprocessbygrantingMTRCexclusivedevelopmentrightsbasedonthegreenfieldsitevalue(i.e.,prerailprice).MTRCalsonegotiatesashareoffuturepropertydevelopmentprofitsand/oracoownershippositionfromthehighestbidder.ThusMTRCreceivesafrontendpaymentforlandandabackendshareofrevenuesandassetsinkind.9 Table1.1summarizesMTRCsportfolioofR+Pprojectsin2006andFigure1.4mapstheirlocations.Bydesign,MTRChaspursuedadiverseportfolioofprojectstoshieldthecompanyfromswingsinHongKongsbusinesscycle.InadditiontoR+P,MTRChasdiversifieditsholdingsthroughequityownership,cashholdings,propertymanagement,consulting,advertising,andownershipofotherassets(e.g.,telecommunicationleases,convenienceretailshops).Thus,ifHongKongsrealestatemarketsoftens,MTRCisbufferedthroughotherassetholdings;ifthelandmarketstrengthens,thecompanyparticipatesinthisupsidethroughbothR+Pleasesandequityownership. R+PsvitalincomeproducingroleisrevealedbyFigure1.5.Overthe20012005period,propertydevelopmentproducedoverhalfofMTRCsrevenues.Bycontrast,railwayincome,madeupmainlyoffareboxreceipts,generated28percentoftotalincome.Together,MTRCsinvolvementinpropertyrelatedactivitiesi.e.,development,investment,andmanagementproduced62percentoftotalincome,morethantwiceasmuchasuserfares. 8 MTRCaimstosetreturnsforitsinvestmentsbasedontheWACCtheweightedaveragecostofcapitalpresentlysetat9.5%(reflectingtheexpectedreturninequityandinterestfromborrowing)plusarentpremiumofbetween1.5%and3%forequityshareholders,yieldinga11%to12.5%return.TheWACCfluctuatesbasedloanrateschargedbycommercialbanks.Forriskierprojects,theWACCmightbesetat10%plusa3%premium,yieldinga13%netreturn.MTRCwillinvestinrailwayprojectsifthesenetratesofreturn(11%to13%,dependingonrisks)areattained.ThisWACC+premiumformulaisusedtoguidenotonlyrailwayinvestmentbutalsoMTRCsownrealestateinvestment,includingshoppingmallsattachedtostations.9 Iftheprivateleaseholdersuffersfuturerevenuelosses,contractualarrangementsprotectMTRCfromparticipatinginthelosses.

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Table1.1.MTRCsPropertyDevelopmentOverview,2006

TypeofLanduseNo.ofCarparks

Residential

Commercial Office

Hotel/ServiceApartments

Government&Institutions

(#Units) GFA(m2) GFA(m2) GFA(m2) GFA(m2) ($Spaces)UrbanLines 31,682 314,923 208,866 0 143,034 6,012AirportLine 28,650 306,640 611,963 291,722 24,770 14,360TweungKwanOLine 29,167 105,814 5,000 58,130 * 6,547Total 89,499 727,377 825,829 349,852 167,804 26,919*Communityfacilitiesincludingschoolsaswellaselderandyouthcentreswillbeprovidedhowevertheamountoffloorspaceissubjecttogovernmentagreements.

Figure1.4.LocationofHongKongsR+PProjects,2007

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28%52%

10%10%

Railway

Property Development Property Investment & Management

Non-fare *2001-2005 Average

Figure1.5.MTRCRevenueSources,20012005Average.

Source:MTRCfinancialaccounts.TimingandprojectphasingarecriticaltothesuccessofR+PgiventhecyclicalnatureofHongKongsrealestatemarket.Inrecentyears,MTRChasreliedonpropertydevelopmenttogenerateprofitstopayoffpastdebt.ThisisreflectedbyFigure1.6,whichchartsannualprofits/lossesfrompropertydevelopmentandotherrecurringbusinessesoverthe19802005period.Duringthe1980s,MTRCmostlyincurrednetlosses(basedondifferencesbetweenrevenuesandcombinedoperatinganddepreciatedcapitalcostaswellasdebtservice).Evenduringthisperiodofoperatinginthered,propertydevelopmentmoderatedlosses.Beginninginthelate1990swhenMTRCbeganaggressivelypursuingR+PalongtheAirportRailwayLine,thenetyieldsprovidedcrucialincomethatwenttofinancethemorerecentTseungKwanOextension.Ittookapproximately10years(1997to2007)tofullypayoffcapitaldebtfortheAirportLineextension.From2007onward,earningsfromR+PprojectsontheAirportLineproducefundsthatnolongerneedtogotowardpayingoffthisdebt,allowingthesefundstobeusedtocovercostsofTseungKwanOandotherplannedextensions.

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Figure1.6.TrendsinMTRCsProfitsandLossesfromPropertyDevelopment

andRecurringBusinessesforthe1980to2005Period MTRChashardlybeenthesolefinancialbeneficiaryofR+P.Societyatlarge,reflectedbyHongKongSARsmajorityownershipofMTRC,hasalsoreapedsubstantialrewards.Forthe1980to2005period,itisestimatedthatHongKongSARhasreceivednearly$140billion(intodaysHongKongdollars)innetfinancialreturns.Thisisbasedonthedifferencebetweenearnedincome($171.8billionfromlandpremiums,marketcapitalization,shareholdercashdividends,andinitialpublicofferproceeds)andthevalueofinjectedequitycapital($32.2billion).ThusthegovernmentofHongKonghasenjoyedtremendousfinancereturnsandseededtheconstructionofaworldclassrailwaynetworkwithouthavingtoadvanceanycashtoMTRC.The$140billionfigure,ofcourse,isonlythedirectfinancialbenefit.Theindirectbenefitse.g.,higherridershipthroughincreaseddensities,reducedsprawl,airpollution,andenergyconsumption,etc.haveincreasednetsocietalreturnswellbeyond$140billion.

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1.5 TheR+PDevelopmentProcessWhattriggersR+PprojectsarefutureplanstoextendMTRlinesorconstructnewones,consistentwithregionallanduseandurbandevelopmentgoalssetbyHongKonggovernment.MTRCstaffworkscloselywithgovernmentplannersandtransportationprofessionalstodefineandassessthecomparativecostsofdifferentalignmentandstationsitingoptions.Theyalsodiscusspropertydevelopmentopportunitiesthatenhancefinancialreturnsoftherailwayinvestmentandpromotelongrangeplanningobjectives.Withintheorganization,MTRCmanagersweighfactorslikethevalueofland,densitypotential,andprojectsizeandscaleindecidingwhethertoadvanceaspecificR+Pproposal.10ThesettingofminimumdensityandsizethresholdsmeansR+Pprojectshaveinthepastmostlyrespondedtoversusleadingthewayinstimulatingnewdevelopment,althoughrecentdevelopmentslikeTungChungstationontheAirportLineandHangHaunewtownattheterminusoftherecentTseungKwanOlineareexamplesofR+Pprecedingurbandevelopment.11Theassemblyoflandusestobebuiltatthestationislargelydeterminedbymarketdemand,constrainedbyzoningregulations.CommercialpropertydevelopmenthasoccurredmostlyatandnearcentralcityMTRstationswhileresidentialprojectshavebeenbuiltmainlyinoutlyingareasandatterminalstations.OtherfactorsalsocomeintoplayindefiningR+Ppossibilitiesandspecificlanduseconfigurations,suchasthepresenceofalargedepot(providingstorageareasfortrains).MTRCsfirstR+Pproject,TelfordGardens,kickedoffmainlybecausealargepodium,slabcoverdepotdeckwasbuiltattheKowloonBayStation(Figure1.7andPhoto1.1).Theresultingexpansivesurfaceareapresentedopportunitiestobuildthispioneeringandsuccessfulmixedresidentialofficecommercialproject.

10 Plotratiosofatleast2.5aregenerallyviewedasnecessaryifR+Pistobefinanciallyremunerative.Also,landvaluesneedtobeabovesomedefinedthresholdtogenerateenoughaggregateincometojustifyR+Pinitiatives.AndthereneedstobeacriticalmassoflandtomakepursuingR+Pfinanciallyworthwhile.11Brownlee(2001)notesthattherelianceonvaluecaptureforfundinginvestmentmeanstheremustgenerallybeapopulationbaseinplacebeforearailwayisbuilt.Hewrites:Thusittookyearsbeforearaillinecouldbebuilttonewtowns,suchasTseungKwanO.Therailoperatorhadtoeffectivelywaitforpopulationtogetuptoabove250,000.Thiswayoffinancingrailhascauseddelayinbuildingrailtopopulationcenters.(Brownlee,2001,p.4).

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OncethedecisionismadetomoveforwardwithaspecificR+Pproposalandallpartiesareinagreement,thegovernmentofHongKonggrantsMTRCexclusivedevelopmentrightsforspecificsites,definingtowerlocations,permissibleuses,andplotratiodensities(i.e.,floorspacedividedbylandarea).MTRCstaffthenpreparesamasterlayoutoftheproject,includingthesitingandmassingofbuildings,blockdesigns,standardsforbuildingquality,andlocationsofvehicleaccesspoints.Theyalsoobtainnecessarystatutoryplanningapprovalsfortheproposeddevelopment.Next,MTRCissuestendersbidsamongpotentialdevelopersandselectsapartnerbasedontheattractivenessofcompetingfinancialoffers,experience,managementcapabilities,andotherfactors.DevelopersaregivensomeflexibilitytorecommendandnegotiatesitemodificationstoR+Pproposals.Onceapublicprivatepartnershipisagreedto,thedevelopertypicallypaysawithraillandpremiumforexclusivedevelopmentrightsandalldevelopmentcosts.Inmostinstances,MTRChasaprofitsharingagreement,receivingasetpercentageoffutureprofitsaswellequityownershipasinthecaseoftheInternationalFinancialCentretowerabovetheHongKongstation,thecitystallestbuilding,whereinMTRCnegotiatedownershipof18floorsasanassetinkind(Photo1.2).

Figure1.7andPhoto1.1.TelfordGardenandPlazaMixedUseResidential

ShoppingOfficeR+PProjectattheKowloonBayStation

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Photo1.2.InternationalFinancialCentreToweratHongKongStation,Hong

KongsTallestBuilding.MTRCowns18floorsoftheofficetowerasaninkindasset.

Onceaprojectbreaksground,MTRCdoesnotdisappearfromthescene.Tothecontrary,thecompanyoverseesprojectdesign,engineering,andconstruction,andmanytimesstaysinvolvedasthepropertymanager.Thiscontinuous,seamlessinvolvementfromprojectconceptualizationtoimplementationtopropertymanagementensuresthatoriginalvisionsareadheredto,thereiscontinuitytoprojectdevelopment,andareliable,transparent,andwellmanageddevelopmentprocessunfolds.Also,projecttenantshaveconfidencethatR+Pprojectsarehighqualityplacestoresideandrunabusinessbecausethemasterplanner,MTRC,remainsactivelyinvolvedthroughoutthedevelopmentprocess.Indeed,MTRCsonsitepresencemeansaresponsiblecompanyofficialisreadilyavailabletofieldandrespondtoconcernsandweightheviewsofallstakeholdersindaytodaydecisions.TherapidabsorptionofnewunitsandretailspaceatrecentlybuiltmixeduseR+PprojectslikeattheKowloon,TungChung,andTsingYistationsisatestamenttoMTRCscommitmentnotonlytoprojectconstructionbutalsomanagementandoversight.AndthefactthatHongKongsgovernmentcontinuestograntMTRCexclusivepropertydevelopmentrightssuggeststhatthepopulaceatlargeishappywiththeresults.R+PasanApproach,NotaProductR+P,itisworthnoting,isasmuchanapproachasaproduct.Yes,shinynewbuildingsatopsubwaystationsarethetangibleoutcomesofR+P.However,R+P

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alsoplaysavitalroleinmanagingandfinancingrailwayexpansion,advancinghighqualityurbandesigns,creatingonestopsettingsforliveworkshopplay,guidingregionalurbangrowth,andmore.Aswithallgoodpublicprivatepartnership,thisoccursinawinwinfashioni.e.,therailwaycorporationreapsfinancialbenefitsandsocietyatlargebenefitsfrommoresustainable,transitorientedpatternsofdevelopment.IntheirindepthstudyofR+Psinstitutionalstructure,Tangetal.(2004)identifyfourkeyelementsbehindtheR+Papproach:

(1) Policy.Favorablegovernmentsupportoftransitandlanduseintegration,expressedbylandgrantsandfinancialassistancetoMTRC;

(2) Process.Forwardlookingplanning,management,andcontrolproceduresthatensureanefficientapproachfromprojectinceptiontocompletion;

(3) Project.Highqualityrealestateprojectsthatappealtotenants,shoppers,andtransitusers;and

(4) Organization.Anentrepreneurialentitythatbalancesthefinancialinterestsofinvestorswithlargersocietalgoals.

MTRCasMasterPlannerTangetal.(2004)alsoarguethatasingleentitylikeMTRCisbestsuitedtomanagethecomplexityoflanddevelopmentandtoleveragetheopportunitiestorecapturevaluecreatedbyrailinvestments.Theyattributethisto:assetspecificity(allowingaprofessionalfocusontheintricaciesoflanddevelopment),accumulatedknowledge(amongMTRCmanagers),reduceduncertainty(owingtoadisciplinedapproachtopropertydevelopmentandaccountabilitytoequityshareholders),internalizationoftransitsvalueadded(bymaximizingancillarydevelopmentpotential),andassetprotection(throughinvolvementinconstructionandpropertymanagement).Asthemasterplanner,masterdesigner,andmasterarchitect,MTRCalignstheinterestsofdifferentstakeholders.Importantly,itsetsandenforcesalldevelopmentstandards.Forprivatedevelopers,therulesofthegameareclearattheoutset.Thisreducesuncertaintiesandrisks.Oneentityoversightalsoallowsstrongtransit/landuselinkages.Inaddition,MTRCactsasanintermediarybetweengovernmentandprivatedevelopersspecifyingsiterequirements,negotiatingagreements,andbalancingbetweencompetingpublicandprivateinterests.

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Today,MTRChasareputationforundertakingdevelopmentofhighendresidentialandupmarketcommercialprojects.Thisisnotonlyduetotheaccessibilityadvantagesofpropertiesnearrailwaystations.Itisalsoaproductofhighqualitystationareadesigns,MTRCsproficiencyatmanagingandmaintainingrealestateprojects,andthecompanyscommitmenttoseamlesslyintegratingrailwaystationswithsurroundingactivities.ReferencesARUP.2003.TravelCharacteristicsSurvey2002:FinalReport.HongKongSpecialAdministrativeRegion,TransportDepartment.Barron,B.,Ng.,K.,Ho,B.,andChan,C.2001.FinancingMassTransitRailways:AnInternationalSurvey.HongKong:UniversityofHongKong,CentreofUrbanPlanningandEnvironmentalManagement.Bernick,M.andCervero,R.1998.TransitVillagesinthe21stCentury.NewYork:McGrawHill.Brownlee,J.2001.SustainableTransportinHongKong:TheDynamicsoftheTransportRelatedDecisionMakingProcess.See:http://www.civicexchange.org/publications/Intern/Sustainable%20Transport.pdfHo,M.PrivatizationoftheMTRCorporation.HongKongUniversityCentreforAsianBusinessCases,HKU139,08/15/01.Lam,W.H.K.2003.AdvancedModelingforTransitOperationsandServicePlanning.Oxford,England:Elsevier.Liu,E.,Wu,J.,andLee,J.1996.CreditRatingsofMassTransitSystems.HongKong:ResearchandLibraryServicesDivision,LegislativeCouncilSecretariat.Tang,B.S.,Chiang,Y.H.,Baldwin,A.N.,andYeung,C.W.2004.StudyoftheIntegratedRailPropertyDevelopmentModelinHongKong,TheHongKongPolytechnicUniversity.Tiry,C.2003.HongKongsFutureisGuidedbyTransitInfrastructure.JapanRailwayandTransportReview,Vol.33,pp.2835.

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ChapterTwoR+Pas

TransitOrientedDevelopment

2.1TransitOrientedDevelopmentandSustainableUrbanism WhileR+Pprojectsareoftenviewedasaneffectivetoolforfinancingrailwayinvestments,itisimportanttorecognizethatitisalsoabonafideformofTransitOrientedDevelopment(TOD).TODistodaywidelyconsideredtobeoneofmostsustainableformsofurbandevelopment,beingpracticedinmanypartsoftheworldasameansofreducingthedominanceofprivateautomobiletravelandpromotingsettlementpatternsthatareconducivetotransitriding(Calthrope,1993;Cerveroetal,2004,Dunphyetal.,2004).Ascompact,mixeduse,pedestrianfriendlydevelopmentcenteredaroundtransitstations,TODencourages,bydesign,residents,workers,andshopperstodrivetheircarslessandridemasstransitmore(BernickandCervero,1997,p.5).Researchshowsthatthesefeaturesofthebuiltenvironmentdensity,diversityoflanduses,andwalkingorienteddesignssubstantiallyinfluencetravelbehaviorandoftenprompttravelerstooptforalternativestotheprivatecar,includingpublictransitusage(KenworthyandLave,1999;EwingandCervero,2001).Fromausersperspective,TODallowsforamoreseamlessformofmasstransporttravelbybringingthecommunityclosertothetransitnodeitself.TODhasmultipleaimshoweverincreasingchoicesopeningupmoreoptionsinhowtotravel,wheretoliveandwork,placestogo,opportunitiestointeractwithothersisoneofitssignaturefeature.Soisavarietyoflandusesandbuildingtypes.Andsoispedestrianfriendliness.However,thechallengesofcreatingTODaremorethanphysicalinnature(Cervero,etal.,2002).Attentionmustalsobegiventosuchmattersasastationareassecurity,economicandcommunitydevelopmentpotential,culturalhistory,andprospectsforbuildingsocialandhumancapital.TODisoneformofcontemporarymovementsinurbandesignliketraditionalneighborhooddesign(TND)orNewUrbanismthataimtostimulatestreetlifeanddiversifyurbanlandscapes.Itisdistinguishedfromotherformsofsmartgrowth,ofcourse,bythepresenceofarailwaystation.Acoreideaofthesepopulardesignmovementsisthatcommunitiesshouldbelikethoseofyesteryear,inthepreautomobileera,whenrelianceonfoottravelcreatedmorecompact,smalllot,mixedusedevelopmentpatterns.Amongthetrademarksoftraditionalneighborhoodsareacommercialcorewithinwalkingdistanceofmostresidents,awellconnectedgridstreet

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network,mixedlanduses,trafficcalmedlocalstreets,andvaryingstylesanddensitiesofhousing.2.2 TODinaRegionalContextSuccessfulTODsarenotjustisolatednodes.OneofthemajorshortcomingsofmanyTODsintheworldsmostautomobiledependentsociety,theUnitedStates,isthattheyaresimplyislandsinaseaofautoorienteddevelopment(Cerveroetal.,2004).AstandaloneTODandtheabsenceofothermixedusenodestowhichtotravelwilldolittletoprompttravelerstogiveuptheircarsandpatronizepublictransport.OneofthekeylessonsfromScandinaviancitieslikeCopenhagen,DenmarkandStockholm,Swedenistheimportanceofbuildinganetworkofcentersandsubcentersinterconnectedbyhighqualitytransit(Cervero,1998).Overfiftyyearsago,urbanplannersinbothcitiesarticulatedcogentvisionsoffutureurbanform,notablynecklaceofpearlssettlementpatterns(Figure2.1).Inbothcities,corridorsforchannelingoverspillgrowthfromtheurbancentersweredefinedearlyintheplanningprocess,andrailinfrastructurewasbuilt,ofteninadvanceofdemand,tosteergrowthalongdesiredgrowthaxes.InthecaseofStockholm,plannersstrivedtocreatejobshousingbalancealongrailservedaxialcorridors.Thisinturnhasproduceddirectionalflowbalances.Duringpeakhours,55percentofStockholmsrailcommutersaretypicallytravelinginonedirectionontrainsand45percentareheadingintheotherdirection.Asimpressive,Stockholmisoneofthefewplaceswhereautomobilityappearstobereceding.Between1980and1990,itwastheonlycityinasampleof37globalcitiesthatregisteredapercapitadeclineincaruseadropoffof229annualkilometersoftravelperperson(KenworthyandLaube,1999).CopenhagenregionalvisionofTODtooktheformofthecelebratedFingerPlanfivewelldefinedlinearcorridors,eachorientedtoahistoricalDanishmarkettown.Asimportantly,greenbeltwedgessetasideasagriculturalpreserves,openspace,andnaturalhabitatswerealsodesignatedandaccordinglymajorinfrastructurewasdirectedawayfromthesedistricts.TheevolutionofCopenhagenfromaFingerPlan,toadirectedrailinvestmentprogramalongdefinedgrowthaxes,tofingerlikeurbanizationpatternsisrevealedbyFigure2.2.

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Figure2.1.TODsasNecklacesofPearls

Figure2.2.Copenhagen:FromFingerPlan,toFiveAxisRadialInvestment,

toCorridorsofSatellite,RailServedNewTowns 2.3The5DsofTODIntermsoftheirphysicalmakeup,TODsfeaturewhathasbeenreferredtoasthethreedimensions,or3Ds,ofsustainabledevelopment:density,diversity,anddesign(CerveroandKockelman,1997).Densitymeanshavingenoughresidents,workers,andshopperswithinareasonablewalkingdistanceoftransitstationstogeneratehighridership.Diversitycallsforamixtureoflanduses,housingtypes,buildingvernaculars,andwaysofcirculatingwithinneighborhoods.Anddesignembodiesphysicalfeatures,sitelayouts,aesthetics,andamenitiesthatencouragewalking,biking,andtransitridingaswellassocialengagement.

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The3Ds,ofcourse,arehardlyindependentofeachotherindeed,mostmixeduseneighborhoodshaveplentifulpedestrianamenitiesandarefairlycompact.The3Ds,then,mightbeviewedasoverlappingspheres,orVennDiagrams,ofhighqualityandsustainableurbanenvironments(Figure2.3).Twoadditionaldimensionsdistancetotransitanddestinationaccessibilitycanbeaddedtothelist,formingthe5Dsofthebuiltenvironment(Figure2.3).Studiesshowridershipamongresidentsandworkersoftentapersexponentiallywithdistancefromarailwaystation(Holtzclawetal.,2002;Cerveroetal.,2002).Inthecaseofresidences,thisisoftenaproductofselfselectionforlifestylereasons,somechosetorentorpurchasearesidencewithineasyaccesstotransitfortheveryreasontheyprefertotakethetraintoworkorotherdestinationsthandrive(Cervero,2007).DestinationaccessibilitypertainstohowwellaTODisconnectedtoretailshops,activitycenters,andotherpopulardestinations.Itthuscapturesthedegreetowhichpublictransportefficientlyconnectsastationareaneighborhoodtoactivitiesspreadthroughoutaregion.MostneighborhoodsaroundMTRsrailwaystationsclearlyfeaturemany,ifnotall,the5DcharacteristicsofTOD.Withamonghighestdensitiesintheworld,retailshoppingintermixedwithofficesandresidentialtowers,andnumerouspedestrianpathwaysandskybridgesthatinterlacebuildings,allMTRstationsandtheirsurroundingsembodythe3Dsdensity,diversity,anddesigntosomedegree.Andwithbuildingheightsthattaperwithdistancefromstations(weddingcakestyle)andconnectedtootherpartsoftheterritorybytwoextensiveurbanrailwaynetwork,mostMTRstationsandR+Pprojectsaswellengenderfeaturesofall5Ds.AgoodexampleisMaritimeSquare,plannedandmanagedbyMTRCaspartofthedevelopmentofTsingYistationairportline.ThemixeduseMaritimeSquareR+Pprojectboastsaseamlessintegrationbetweentherailwaystationandshoppingcenteraswellastheabovestationresidentialtowers(Figure2.4).ResidentscanexperienceatemperaturecontrolledenvironmentabletogofromtheirluxuryapartmentstoshoppingbelowandthendirectlyintotheMTRstationwithoutsteppingoutdoors.MaritimeSquarecametofruitionbecausetheopportunitiesforphysicalintegrationwereassessedatthemasterplanningstage(Tangetal.,2004).However,mostMTRstationsandassociatedR+PprojectsarenotlikeTsingYiStationandMaritimeSquare.Theyvaryowingtodifferencesintopographyandgeographicalsettings,historiesandtimingofdevelopment,sociodemographiccharacteristics,realestatemarketvitality,andneighborhoodattitudesandsentiments.Accordingly,theyvaryenoughacrossthese5Ddimensionstocreatedifferentphysicalenvironmentsandpotentiallydifferent

25

realestatemarketcharacteristicsandridershipperformance.Forthisveryreason,atypologyofMTRsstationswithR+Pprojectsisdevelopedinthenextchapter,builtalongthelinesofthe5Ds.Possessingthe5Dsdoesnotnecessarilymeandevelopmentisorientedtotransit.IntheUnitedStates,thetagofTODhascomeunderattackbythosewhocontendthatbuildingserectednearU.S.transitnodesdonotalwayshaveanykindoffunctionalrelationshiptoastation.Bigcommercialboxesenvelopedbyabundant,freeparkingdonotconstituteTODregardlesshowclosetheymightbetoastation.SuchTransitAdjacentDevelopment(TAD)characterizesalotofcommercialactivitiesnearsuburbanrailstationsintheUnitedStates(Photo2.1).Urbandesigns,andparticularlyattentiontotheneedsofthepedestrians(sincealltransitusersarepedestrianstosomedegree),areoftenwhatdetermineswhetherdevelopmentisorientedversusadjacenttotransit.WhileTADislessprevalentinHongKongduetothescarcityoflandandthustheneedtocarefullyintegrateddevelopment,therearenonethelessmissedopportunitiestointegratesurroundingdevelopmentwithMTRandformerKCRstations,particularlyinthecaseofsomeolderstationsandcommercialprojects.ThesearediscussedlaterinthereportinthecasestudyanalysesinChapterFour.

DensityDensity

DiversityDiversity DesignDesign

3 Ds of the Built Environment

5 Ds of the Built Environment

DestinationDestinationAccessibilityAccessibilityDistanceDistance

(to transit)(to transit)

DensityDensity

DiversityDiversityDesignDesign

Figure2.3.Three&FiveDsofBuiltEnvironments:Density,Diversity,

Design,DestinationAccessibility,andDistancetoTransit

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5/F (Park-and-ride Facilities and Residential Parking)

Podium Garden

4/F (Residential Parking)3/F (Platforms of Airport Express and Tung Chung Line, Shopping Mall)

2/F (Platforms of Airport Express and Tung Chung Line, Shopping Mall)

1/F (Station Concourse, Shopping Mall and PTI)

G/F (Loading/ Unloading, Shopping Mall, PTI and Parking)

PTI

Station FacilitiesShopping MallResidential FacilitiesRecreational Facilities

HighHigh--rise rise residential buildingsresidential buildings

StationStation Shopping MallShopping Mall

Figure2.4.MaritimeSquareResidentialRetailDevelopmentAtopTsingYiStation.MaritimeSquarefeatureshierarchicallyintegrateduses.Shoppingmallextendsfromthegroundfloortothe3rdlevel.Stationconcoursesitsonthe1stfloor,withraillinesandplatformsaboveandancillary/logisticalfunctions(likepublictransport/businterchangeandparking)atorbelow.Abovethe4thand5thfloorresidentialparkingliesapodiumgardenandabovethis,highrise,luxuryresidentialtowers.

2.4 TODasPlacemakingTODismorethanbricksandmortarorsomefancifularchitecturalvision.Atitscore,TODisaboutplacemaking.InthebookTransitVillagesforthe21stCentury,BernickandCervero(1997,p.5)castTODinsuchplacemakingterms:

Thecenterpieceofthetransitvillageisthetransitstationitselfandthecivicandpublicspacesthatsurroundit.Thetransitstationiswhatconnectsvillageresidentsandworkerstotherestoftheregion,providingconvenientandreadyaccesstodowntowns,majoractivitycenterslikesportsstadium,andotherpopulardestinations.Thesurroundingpublicspacesoropengroundsservetheimportant

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functionofbeingacommunitygatheringspot,asiteforspecialevents,andaplaceforcelebrationsamoderndayversionoftheGreekagora.

Photo2.1.TAD:TransitAdjacentDevelopmentinSanJose,CaliforniasSiliconValley.Lightrailstationinroadwaymedian,separatedfromsurroundingbuildings,allofwhicharespreadout,singleuseemploymentcentersenvelopedbysurfaceparking.

Amongtheadjectivesoftenusedbycontemporaryurbandesignerstodescribehighquality,transitfriendlyplacesare:

Comfortable:ahumanscalesettingwherebypeoplearenotoverwhelmedbytheheightofbuildings,robbedofdaylightbythecastofshadows,orexcessivelysubjectedtosuchelementsaswindeddies.Comfortisparticularlyimportantforrailstationareaswhererealestatemarketsexertpressuretomaximizeprofitsbyincreasingdensitiesatandnearstationentrances.

Memorable:interestingmilieusthatinstinctivelydrawpeopletothem,oftenbyhighlightinganareasdistinctivehistory,culture,architecture,ornaturalfeatures.

Aestheticandamenities:astrongaccentonlivabilitythroughhighqualityandcoordinatedurbandesigns,amplelandscapingandgreenery,displayofthearts,andpreservationofnaturalfeatures;aestheticsbecomeallthemoreimportantinTODssoastosoftenpeoplesperceptionsofsurroundingdensities.

Connectivity:theabilitytofreelyandseamlesslyinterconnecttonearbyplacesinanefficient,pleasant,andsafemanner.

Legibility:visualcues,buildingorientations,signage,andclearsitelinesthatallowpeopletoeasilyreadtheirenvironsandthusreachdesireddestinationsinatimely,predictablemanner.

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Naturalsurveillance:lively,vibrantsettingsofsocialinteractionthatputseyesonthestreetsoastoprovideacollectivesenseofsecurityandselfpolicing.

TheideathatTODismorethananassemblyofbuildingsaroundtransitnodesalsospeakstoitssocialandculturalcontext.SomeobserversmakethecasethatTODprovidesanopportunitytobuildsocialcapitali.e.,encouragingsocialinteractionandstrengtheningthebondbetweenpeopleandthecommunitiesinwhichtheylive,work,andplay(DittmarandOhland,2004).BuildingupontheseminalwritingsofPutman(2000),thehopeandexpectationisthatbyallowingmorefacetofaceinteractionandpublicengagement,TODcanplayaroleinpromotinggoodcitizenship,providingeyesonthestreetasameanstoreducecrime,promotingvolunteerismlikeparticipationinneighborhoodcleanupdrives,andgreatersensitivitytothedifficultiesfacedbysomesegmentsofsociety,liketheelderlyandpoor.TODscanalsocreatelivelyurbandistricts,thekindsofplacespeoplearenaturallydrawnto.Inthisvein,BertoliniandSpit(1998)noteTODsexploitthesynergiesbetweenrailwayandcommunities,turningthetransitstationintoaplacetoberatherthanaplacetopassthrough.WecanagainturntoScandinavianexperiencestogaininsightsintodesignelementsthatenhanceTODsroleasplacemaking.IngreaterStockholm,manyrailstationsarephysicallyandsymbolicallythehubofthecommunity.Inmostmasterplannednewtowns,likeVllingbyandSkarholmen,therailstopsitssquarelyinthetowncenter(Cervero,1998).Uponexitingthestation,onestepsintoacarfreepublicsquaresurroundedbyshops,restaurants,schools,andcommunityfacilities.Thecivicsquare,oftenadornedwithbenches,waterfountains,andgreenery,isthecommunityscentralgatheringspotaplacetorelax,socialize,andasettingforspecialevents,whethernationalholidays,publiccelebrations,parades,orsocialdemonstrations(Photo2.2).Sometimes,thesquaredoesdoubledutyasaplaceforfarmerstoselltheirproduceorstreetartiststoperform,changingchameleonlikefromanopenairmarketonedaytoaconcertvenuethenext.Theassortmentofflowerstalls,sidewalkcafes,

29

Photo2.2.TODPublicSquare,Vllingby,StockholmCounty,Sweden.Apedestrianfriendly,carfreecivicsquarefunctionsasVllingbystowncenter.Theaccentonlivabilityisshowcasedbystreetfurnitureandbenches,flowerplantings,waterfountains,publicart,cobblestonewalkways,andanassortmentofgroundlevelretailshops.StockholmsTunnelbanasubwayentranceistotheleft(identifiedbytheroundTsign).newsstands,andoutdoorvendorsdottingthesquare,combinedwiththemusingsandconversationsofresidentssittinginthesquare,retireesplayingchess,andeverydayencountersamongfriends,addscolorandbreatheslifeintothecommunity.ThischaracterizationofTODasasociallyengagingvillagewrappedaroundarailwaystationismostpertinenttoneighborhoodswhereresidencesarethedominantlanduses.Althoughbuiltatmuchhigherdensitiesthanmightbeconsideredavillage,andcertainlywellabovethoseinrailservedScandinaviansuburbs,MTRstationslikeKowloonBayandTungChungnonethelessimpartasenseofplace.Theydothisinpartbycreatingasignificantpublicspaceoutsidethestationthatfunctionsasacasualcommunitygatheringplace.TungChungstationanditsadjacentcivicsquare,forinstance,istodaythecenterpieceoftheTungChungnewtownandaccordingtoTangetal.(2004,p.27)ithasthepotentialtobecomeHongKongslandmarkgatewayfromvisitorsarrivingattheairport(Photo2.3).

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Photo2.3.TungChungStationEnvironment.OpenspaceandattractivelandscapingseparatestheMTRstationfromnearbyresidentialtowers.AsdiscussedinthecasestudiesinChapterFour,manyofMTRsnewerstationareas,likeTungChung,areofahumanscale,featuringbrightnightlights,openness(muchappreciatedinahyperdensecity),vividandcoordinatedurbandesigns,andthroughactivepedestrianmovements,thekindofnaturalsurveillancethatgivespeopleasenseofcomfort.

2.5UrbanTODsandJointDevelopmentTODsneednotbepredominantlyresidentialintheirmakeup.UrbanTODstypicallyhavemoreofanofficeandcommercialorientation.Concentratingretailcentersandjobsitesinandaroundstationsiseverybitasimportanttopromotingtransitridershipasconcentratingresidentialtowers.Withoutthedestinationendofatripalsoconvenientlyservedbytransit,residentialTODswillnotyieldhighridershipdividends.AlloftheworldsmostsuccessfultransitmetropolisesStockholm,Copenhagen,Tokyo,SingaporecomplementresidentialTODswithurbancentersinterlinkedbyhighquality,highcapacityrailtransit(Cervero,1998).AmongMTRstationsthatplaythisimportantcomplementaryroleasprimarydestinationsareCentral,HongKong,Admiralty,QuarryBay,andSheungWan.HongKongstation,forexample,notonlyfunctionsasamajorofficeretailhotelcomplexintheurbancore,butalsoanintermodalconnectionpoint,offeringtransportinterchange(includingcheckinforandexpressconnectionstotheInternationalAirport)(Figure2.5).

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Figure2.5.MixedUse,IntermodalActivitiesatMTRCsHongKongStationUrbanTODshavethepotentialtospinoffsecondaryeconomicbenefitssuchasprovidingopportunitiesforjointdevelopment(e.g.,buildingaretailstoreadjacenttoatransitstationandgeneratingleaserevenuesforatransitagency)(BernickandCervero,1997).Inmanyways,TODisasecondaryspinoffoftheR+Pmodelsfinancialfocusthatis,highqualityandsustainableurbanismisanimportantbyproduct.Technically,jointdevelopmentcanbebutisnotalwaysTODandmostTODisnotjointdevelopment.TransitjointdevelopmentisdistinguishedfromTODmainlybybeingtiedtoaspecificrealestateproject,venture,orbrokereddealbetweenapublicentity(likeatransitagency)andoneormoreprivateinterests.Jointdevelopmentnormallyoccursonatransitagencyspropertyorinitsairrights(Cerveroetal.,2004).Globally,theinventoryofjointdevelopmentattransitstationsincludeairrightsdevelopment,groundleasearrangements,stationinterfaceorconnectionfeeprograms,andotherinitiativesthatpromoterealestatedevelopmentatorneartransitstationstothemutualbenefitsofpublicandprivateinterests.Atitscore,jointdevelopmentoperatesontheprincipleofquidproquodevelopersobtaintherighttodevelopstationlandbymakingadirectpayment(purchase,andlease,capitalcontribution,developmentfee).Byenablingpublicprivatepartnership,jointdevelopmentnotonlyallowscapital

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coststobecoveredbutalsoprovidesanopportunityforimplementingacomprehensivelymasterplanneddevelopmentprojectwithahighqualityurbandesignthatenticesadditionalprivateinvestment.AsawinwinarrangementMTRCsR+Pprojectsareakintotransitjointdevelopment,althoughinsteadofleasinglandtoprivatedevelopers,asinthecasewithjointdevelopmentintheU.S.andmanyotherpartsoftheworld,MTRCoftensellsdevelopmentrightsoutrighttoqualifiedandsuccessfulprivatebidders.Regardless,theoutcomeisthesame:integratedrailandpropertydevelopmentthatisfinanciallyremunerative.Ofnote,bothapproachesoperateonthecoreprincipleofvaluecapturereapingthefinancialbenefitscreatedbytheaccessibilitygainsmadepossiblethroughpublicsectorinvestmentsinrailtransit.ReferencesBernick,M.andR.Cervero.1997.TransitVillagesforthe21stCentury.NewYork:McGrawHill.Bertolini,L.andSpit,T.1998.CitiesonRail.London:SponPress.Calthorpe,P.1993.TheNextAmericanMetropolis:Ecology,CommunityandtheAmericanDream.NewYork:PrincetonArchitecturalPress.Cervero,R.1998.TheTransitMetropolis:AGlobalInquiry.Washington,D.C.:IslandPress.Cervero,R.2007. TransitOrientedDevelopmentsRidershipBonus:AProductofSelfSelectionandPublicPolicies,EnvironmentandPlanningA,Vol.39,pp.20682085.Cervero,R.andKockelman,TravelDemandandthe3Ds:Density,Diversity,andDesign,TransportationResearchD,Vol.2,No.3:199219,1997.Cervero,R.,C.Ferrell,C.,andS.Murphy.2002.TransitOrientedDevelopmentandJointDevelopmentintheUnitedStates:ALiteratureReview.ResearchResultsDigest.Washington,D.C.:TransportationResearchBoard,TransitCooperativeResearchProgram,No.52.Cervero,R.,S.Murphy,C.Ferrell,N.Goguts,Y.Tsai.2004.TransitOriented

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DevelopmentinAmerica:Experiences,Challenges,andProspects.Washington,D.C.:TransportationResearchBoard,TCRPReport102.Dittmar,H.andOhland,G.2004.TheNewTransitTowns:BestPracticesinTransitOrientedDevelopment.Washington,D.C.:IslandPress.Dunphy,R.,Cervero,R.,Dock,R.,McAvey,M.,Porter,D.andSwenson,C.2004.DevelopingAroundTransit:StrategiesandSolutionsThatWork.Washington,D.C.:UrbanLandInstitute.Ewing,R.andCervero,R.2001.TravelandtheBuiltEnvironment:ASynthesis.TransportationResearchRecord1780,pp.87113.Holtzclaw,J.,R.Clear,H.Dittmar,D.Goldstein,andP.Haas.2002.LocationEfficiency:NeighborhoodSocioEconomicCharacteristicsDetermineAutoOwnershipandUse:StudiesinChicago,LosAngelesandSanFrancisco,TransportationPlanningandTechnology,Vol.25,pp.127.Kenworthy,J.andLaude,F.1999.AnInternationalSourcebookofAutomobileDependenceinCities,19601990.Boulder:UniversityofColoradoPress.Putnam,S.2000.BowlingAlone:TheCollapseandRevivalofAmericanCommunity.NewYork:Simon&Schuster.

Tang,B.S.,Chiang,Y.H.,Baldwin,A.N.,andYeung,C.W.2004.StudyoftheIntegratedRailPropertyDevelopmentModelinHongKong.HongKong:TheHongKongPolytechnicUniversity.

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PartII

AnalysisofR+P:Typologies,CaseStudies,

PerformanceImpacts,andRegionalContext

WhattypesofR+Pprojectshaveevolvedovertime,howwellaretheyintegratedintosurroundingcommunities,andtowhatdegreedotheyinfluenceMTRridershipandrealestatemarketperformance?Theseareamongthequestionsaddressedinthesecondpartofthereport.ChapterThreecreatestwotypologiesofR+Pprojects:onebasedonbuiltenvironmentcharacteristicsofR+Pprojects,suchasdensity,scale,andlanduses;theotherbasedonhousingcharacteristicsanddevelopmentpatterns.AssociationsbetweentypesofR+Pprojectsandridershippatternsareexamined.ChapterFourpresentsqualitativecasestudiesofprojectsforeachR+Ptype.Throughfieldsurveys,urbandesignandthequalityofwalkingenvironmentsareassessed.Partnershiparrangementsforconstructing,managing,andsharingofcostsandprofitsarealsodiscussedforeachcase.ChapterFivealsopresentscasestudiesofR+P,howeverthefocusishownewergenerationprojectsbasedontransitorienteddesignprinciplescomparetoearlieroneswhichweremotivatedalmostexclusivelybyfinancialconcerns.RidershippatternsarecontrastedbetweennewerandolderR+Pprojects.ThesixthchapterfocusesexplicitlyontheinfluencesofR+PonMTRpatronageaswellashousingprices.StatisticalmodelsareestimatedthatgaugetheinfluencesofR+Paswellastransitorienteddevelopmentontheseoutcomes.ChapterSevenclosesoutPartIIwithamoremacroscaleperspective,examiningtheroleofR+Pinachievingregionaldevelopmentobjectives,suchasnewtowndevelopment,landconservation,andurbanregeneration.AsHongKongcontinuestoexperienceeconomicrestructuringtowardamoreservicebasedeconomy,theR+Papproachiswellpositionedtoguidetheurbantransformationprocess.

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ChapterThreeR+PandStationAreaTypologies:

BuiltEnvironmentsandHousingDevelopment

3.1TypologiesofR+PProjectsWhilemostR+PprojectstoweraboveorbesidesMTRstations,theyarehardlyoneinthesame.Indeedtheyvarybylanduses,buildingdensities,sitedesigns,connectivitytosurroundingneighborhoods,intermodalprovisions,andthedegreeofintegrationwithstationconcourses.LikemostTODs,R+Pprojectsarenotmonoliths;theyvaryplacetoplace.ThischapteraimstoshedlightonthedifferenttypesofR+Pprojects,primarilywithregardstobuiltenvironments,usingthe5DsintroducedinChapterTwo.Atypologyisalsoconstructedonhousingprojectswithin500metersofMTRstationswithregardtofactorsliketype(e.g.,privatelyownedorpubliclysubsidized),density,andproximitytostations.Theprimaryreasonforconstructingthesetypologiesisdescriptivei.e.,toclassifyprojectsbasedontheirsharedcharacteristics.Asecondaryobjectiveisnormative:togaininsightsintohowridershipvariesamongtypesofR+Pprojectsandhousingdevelopments.Additionally,someoftheanalysesinlaterchapters,inparticularcasestudydiscussionsofR+Pdesigns(ChapterFour),drawupontheseclassificationse.g.,casestudyexamplesarepresentedforeachR+Ptype.Classificationisoneoftheoldestpursuitsofhumankind.Whetherusedforstudyingbuildings,neighborhoods,cars,oranimalspecies,classificationisausefultoolfordistillinglargevolumesofinformationintomoreinterpretablesubgroups.Borrowinganidiom,ithelpsoneseetheforestthroughthetrees.3.2 R+PTypology:BuiltEnvironmentsWhattypesoflanduseenvironmentsanddensityprofilescharacterizeR+Pprojects?Toaddressthisquestion,datawerecompiledforeachof25MTRstationswithR+Pprojectsasoflate2006.ForeachR+Psite,inhousedatawereobtainedfromMTRCon:

38

buildingarea(ingrossfloorarea,orGFA)byuse(residential,office,retailshopping,hotel/serviceapartments,andother);

scale(sizeofsiteinhectaresandtotalgrossfloorareaofdevelopment);

density(plotratio=buildingarea/landarea)andverticality(heightofbuildings);

mixuseattributes(heterogeneityindex,rangingfrom0forsingleusesettingsto1formaximallymixedusesettings).1

Amongthe5DsdiscussedinChapterTwo,thesevariableslargelycaptureDensity(e.g.,plotratio)andDiversity(e.g.,landusemixing).WhileinitialeffortsweremadetocompileDesignmetrics(suchaspedestrianconnectivityindicesandmeasuresofsidewalkcompleteness)forR+Pprojects,thisproveddifficultnotonlybecauseoftheunavailabilityofprecollecteddatabutalsobecauseoftheinherentsubjectivityofthesubjectmatter.Forthisreason,thedecisionwasmadenottoincludedesignmeasuresinconstructingthetypologybutinsteadtoconductseparatecasestudyanalysesofR+Pprojectsfocusedonurbandesignelements(presentedinthenextchapter).Inbuildingatypology,thestatisticaltechniqueofclusteranalysiswasused.Theprocessinvolvedcombiningcasesintoclustersonthebasisoftheirsimilarityacrossbuiltenvironmentvariables.Theprocessinvolvesiterativelycombiningsimilarlikecasestoformalimitedsetofclusters.2Atreediagram,calledadendogram,ofR+PprojectsthatwereiterativelyjoinedonthebasisoftheirsharedlanduseanddensityattributesisshowninFigureA.1.1ofAppendixA.3 1 This was based on the measurement of an Entropy Index = { -k [ (pi) (ln pi)]}/(ln k) wherein: )10( EI and K = # of Land use types (in this case, K=5); pi: GFA-based proportion of land use in type i; and i : Land use type (residential, office, retail, hotel and others).2 TheprocessinvolvedcombiningcasesintoclustersonthebasisoftheirnearnesstoeachotherwhenexpressedassquaredEuclideandistances.Usingthetechniqueofagglomerativehierarchicalclustering,clustersweresequentiallyformedbygroupingcasesintoevenlargerclustersuntilallR+Pcasesweremembersofasinglecluster.3 Thedendogramshowstheclustersbeingsequentiallycombinedandthenormalizedvaluesofthecoefficient(i.e.,squaredEuclideandistances)ateachstep.Thejudgmentalpartofclusteranalysisisdecidingatwhatstagetostopjoiningclusters.Thisisnormallydonewhenthedistancecoefficientsdramaticallyincreasefromoneagglomerationsteptoanother.Visually,thisisbeforethehorizontallines(denotingthejoiningofclusters)inthedendogrambecomenoticeablelonger(approximatelyinthemiddleofthegraphbetweenrescaleddistanceclustercombinescoresof10and15.

39

FivetypesofR+Pprojectswerefoundamongthe25MTRstations.(TwostationswithR+Pprojectswerenotgroupedintoclustersbecauseoftheiridiosyncraticandthusuncharacteristicnature,thustheyweretreatedasungrouped).ThetitlesassignedtothesefivetypesofR+Pprojectsbasedontheirbuiltenvironmentattributesareasfollows:

HighRiseOffice(HO):highrise,predominantlyofficeusesonsmallsites;

HighRiseResidential(HR):highrise,predominantlyresidentialusesonsmallsites;

MidRiseResidential(MR):mediumdensity,predominantlyhousingprojectsonmediumsizeplots;

LargeScaleResidential(LR):predominantlyresidentialusesonlargesiteswithcomparativelylowplotratios;and

LargeMixedUse(LM):mixtureofhousing,offices,retail,hotels,andothersonlargesiteswithmediumplotratios.

Figure3.1mapsthelocationsofthesefiveR+Pprototypes(spreadamong25MTRstations).Figure3.2summarizesthebuiltenvironmentfeaturesofeachtypebypresentingstatisticalaveragesforthevariablesusedtoformclustersi.e.,plotratios,scale(GFAofbuildingarea),sitearea,andlandusemixes(expressedinbothpiechartformandasa01entropymixeduseindex).Figure3.2alsoliststhestationswhichbelongtoeachR+Pprototype.DifferencesinthebuiltenvironmentsofeachclassofR+PstationsarehighlightedinFigure3.2.Amongthefiveprototypes,averageplotratiosrangefromahighof14.84(HighRiseOffices)toalowof3.51(LargeScaleResidential)i.e.,morethanafourfolddifferential.IntermsoftotalGFA,LargeScaleResidentialprojectslikeTungChungandKowloonBaytendtobethebiggestinsize,withameanGFAof670,000squaremeters,owingtotheirtypicallylargelandtracts(onaverage,19.5hectares).HighRiseOffices,foundmostlyinthehistoricalurbancoreofHongKongisland,ontheotherhand,tendtobeoncomparativelysmallsites(mean=0.40hectares)andforthisreason,averagethelowestgrossfloorbuildingarea(mean=59,700squaremeters).Basedonboththepiechartsandmixeduse(entropy)indicesinFigure3.2,R+Pprojectsarealsoseentovarymarkedlyintermsoflandusemixes.Asindicatedbytitle,theLargeScaleMixedUsetypeofR+Pprojectisthemostdiverse.Amongthethreestationsinthiscategory(Kowloon,TseungKwanO,andHong

40

Figure3.1.LocationsofR+PProjectsbyBuiltEnvironmentTypesKong),onaverage40.5%ofGFAisdevotedtohousingand28%forofficeuses,followedby20%forotheractivities(likehotels,governmentfunctions,andrecreationalfacilities)and11.4%forretailshopping.3.3 StationAreaTypology:HousingPatternsGiventhefocusgiventoresidentialdevelopmentaroundMTRstations,asecondtypologywasconstructedbasedonhousingtypesanddesigns.Using2001(themostrecentavailable)censusdataonhousing,thefollowingvariableswererecordedfor500metercatchmentsofthe50MTRstationsthatexistedthatyear:

Numberofhousingunitswithindistanceringsof080m,80200m,and200500mofstations;

Shareofhousingunitswithin500mbytype:private(markettransactedandgenerallyhighestqualityhousing);public(rentalunitsatcomparativelylowprices);andsubsidized(governmentprovidedhousingsoldatadiscountedprice);and

41

HO

9%

78%

13%Mixed

0.30

9%

78%

13%Mixed

0.30

HR MR LR LMPl

ot R

atio

=14.

84

Site Area=0.40ha

GFA=5.97haPl

ot R

atio

=14.

84

Site Area=0.40ha

GFA=5.97ha

32%

2% 66%

Mixed

0.42

32%

2% 66%

Mixed

0.42

Plot

Rat

io=1

2.90

Site Area=0.57ha

GFA=7.28ha

Plot

Rat

io=1

2.90

Site Area=0.57ha

GFA=7.28ha

1%9%

90%

Mixed

0.22

1%9%

90%

Mixed

0.22

Plot

Rat

io=6

.99

Site Area=3.41ha

GFA=14.82ha

Plot

Rat

io=6

.99

Site Area=3.41ha

GFA=14.82ha

83%

5%

11%

1%

Mixed

0.36

Plot

Rat

io=3

.51

Site Area=19.48ha

GFA=67.01ha

Plot

Rat

io=3

.51

Site Area=19.48ha

GFA=67.01ha

41%

28%

11%

20%

Mixed

0.6241%

28%

11%

20%

Mixed

0.62

Plot

Rat

io=6

.86

Site Area=8.27ha

GFA=60.06ha

Plot

Rat

io=6

.86

Site Area=8.27ha

GFA=60.06ha

4 stations-ADMIRALTY-CENTRAL -MONG KOK-SHEUNG WAN

4 stations-SHAU KEI WAN -WAN CHAI -SAI WAN HO -TIN HAU

8 stations-FORTRESS HILL -TIU KENG LENG -CHAI WAN-CHOI HUNG -KWAI FONG -TSING YI -TSUEN WAN -HANG HAU

5 stations-HENG FA CHUEN -KOWLOON BAY -TUNG CHUNG-OLYMPIC -TAI KOO

3 stations-KOWLOON -TSEUNG KWAN O-HONG KONG

Off

Ret

Hot

Oth Res

Figure3.2.ListingofMTRStationsineachBuiltEnvironmentTypeandStatisticalMeanStatisticsforkeyclusteringvariables.

Averagehouseholdsizewithin500mdistancering.

Ahierarchicalclusteringroutinewasusedtoconstructthetypology,producingthedendogramshowninFigureA.1.2inAppendix1.Inall,sixdistincttypesofhousingdevelopmentwerefoundamongMTRstations.4ThesearesummarizedinFigure3.3.Briefly,thesixhousingtypesareasfollows:

4DisneylandResortandSunnyBaywerenotincludedinthetypologybecausenohousingexistedaroundthesestationsin2001.Additionally,theMeiFoostationisomittedfromtheanalysisbecauseoftheidiosyncraticnatureofitshousing(largescalehousingbutprivateunits).

42

Housing Pattern Ownership Type Scale and Size Stations Donut Private Small # & Big Size 3 stations

ADMIRALTY CENTRAL SHEUNG WAN

Even Spread Private Large # & Small Size *17 stations

Core Housing Private Small # & Small Size 4 stationsHENG FA CHUEN KOWLOON LAI CHI KOK TUNG CHUNG

Even Spread Private-Public Large # **17 stations

Donut Subsidized Small # 2 stationsTIU KENG LENG TSEUNG KWAN O

Near-Station Housing Public Large # & Big Size 4 stationsCHOI HUNG HANG HAU KWAI HING LAI KING

Figure3.3.TypologyofHousingDevelopmentsAroundMTRStations

500m 200m 80m

81.7%

4.8%13.5%

500m 200m 80m

81.7%

4.8%13.5%

100.0%

6,692units

3.48 per unit

6,692units

3.48 per unit3.48 per unit

500m 200m 80m

53.6%

32.8%

13.6%

500m 200m 80m

53.6%

32.8%

13.6%

3.7%

90.1%

6.2% 18,316units

3.10 per unit

18,316units

3.10 per unit3.10 per unit

500m 200m 80m

14.1%

0.0%

85.9.%

500m 200m 80m

14.1%

0.0%

85.9.%

3,561units3.19 per unit

3,561units3.19 per unit3.19 per unit

500m 200m 80m

92.6%

7.4%0%

500m 200m 80m

92.6%

7.4%

500m 200m 80m

92.6%

7.4%0%

79.3%

0.3%20.5%

7,437units

3.22 per unit

7,437units

3.22 per unit

500m 200m 80m

22.1%

56.1%

21.8%

500m 200m 80m

22.1%

56.1%

21.8%17.4%

13.1%

69.5%

21,261units

3.66 per unit

21,261units

3.66 per unit3.66 per unit

11.3%

81.7%

7.0%

500m 200m 80m

59.8%

24.8%15.4%

500m 200m 80m

59.8%

24.8%15.4%

22,078units

3.25 per unit

22,078units

3.25 per unit3.25 per unit

34.2%

11.8%

54.0%

43

Note:* 17 stations ** 17 stations CAUSEWAY BAY FORTRESS HILL HONG KONG JORDAN MONG KOK NORTH POINT OLYMPIC PRINCE EDWARD QUARRY BAY SAI WAN HO SHAM SHUI PO TAI KOO TIN HAU TSIM SHA TSUI TSUEN WAN WAN CHAI YAU MA TEI

CHAI WAN CHEUNG SHA WAN DIAMOND HILL KOWLOON BAY KOWLOON TONG KWAI FONG KWUN TONG LAM TIN LOK FU NGAU TAU KOK PO LAM SHAU KEI WAN SHEK KIP MEI TAI WO HAU TSING YI WONG TAI SIN YAU TONG

Figure3.3.(Continued).TypologyofHousingDevelopmentsAroundMTRStations

1) Private,SmallScale,DonutPatternHousing:Threestationareas(Admiralty,Central,andSheungWan)haveexclusivelyprivatehousing,comprisingrelativelysmallnumbersofunits(onaverage,6,692within500m),mostofwhichareawayfromthestationi.e.,adonutpatterninthatthereisaholeinthecenter,nearthestation,withmosthousinginthe200500distancering.

2) PredominantlyPrivate,LargeScale,EvenlySpreadHousing:ThemostMTRstations(17inall)havepredominantly(onaverage,over90%)privatehousinginlargescaleprojects(onaverage,18,316units)andcomparativelysmallhouseholdsizes.Theseunitstendtobemoreevenlydistributedwithinthe500meterstationcatchmentwhilemost(53.6%)ofhousingisinthe200500mdistancering,sincethisringismuchlargerinarea,thehousingtendstobemoreevenlyspreadthaninmoststationsettings.

44

3) PredominantlyPrivate,SmallScale,CoreHousing:Fourstationareas(HengFaChuen,Kowloon,LaiChiKok,andTungChung)featurepredominantlyprivatehousing(onaverage,81.7%),insmallscaleprojects(onaverage,3,561units),andconcentratednearthestation(around86%lieswithin80mofstations).

4) Mixed,LargeScale,EvenlySpreadHousing:Seventeenstationareasaveragethewidestmixofprivate,public,andsubsidizedhousing,generallyofalargescale(onaverage,22,078units)andfairlyevenlyspreadwithinthe500mstationcatchment.

5) PredominantlySubsidized,SmallScale,DonutPatternHousing:Twostations(TiuKengLengandTseungKwanO)arecharacterizedbymainlysubsidized,fairlysmallscalehousingthatissituatedmainlyawayfromthestation(i.e.,inadonutshapedpattern).

6) PredominantlyPublic,LargeScale,NearStationHousing:Fourstationareas(ChoiHung,HangHau,KwaiHing,andLaiKing)featurepredominantlypublichousingofafairlylargescale,withcomparativelylargehouseholdsizes,andphysicallyfairlyclosetostations(78%lieswithin200meters).

DoeshousingdevelopmentdifferamongMTRstationswithR+Pstationsandthosewithout?DoesitdifferamongthefivetypesofR+Pstationsettings?Thesequestionswereexploredbycrosstabulatingthedatafromthetwoclusteranalyses.Table3.1showstheresults.ComparedtononR+Pstations,thosewithR+Pprojectstendto:

45

Table3.1.ArithmeticMeansofHousingStatisticsforMTRStationswithR+PProjects:ComparisontoNonR+PStationsandAmongFiveR+PBuiltEnvironmentTypes

HousingUnitsWithin500m

HousingUnitsDistributionwithin500m

(%)

HousingUnits

SharebySupplyType(%) ResidentsperUnit

500-200

200-80

80-0 Public Subsidized

Private

25R+P 17,433 51.7 26.3 21.9 23.3 16.2 60.4 3.07 HO

(highriseoffices) 10,398 77.0 10.6 12.4 0.0 0.0 100.0 3.44 HR

(highriseresidential) 20,607 51.0 33.0 16.1 19.6 9.8 70.7 2.48

MR(midriseresidential) 20,922 56.7 34.4 9.0 36.1 27.5 36.4 2.97

LR(largescaleresidential) 20,442 32.7 19.0 48.3 19.2 15.9 64.9 3.21

LM(largescalemixuses) 5,333 46.2 15.6 38.2 13.6 19.7 66.7 3.26

26NonR+P 15,617 50.8 24.4 17.2 32.8 5.1 54.5 3.39 51StationTotal 16,507 51.2 25.3 19.5 28.1 10.5 57.4 3.23

havemorehousingunitswithin500meters;

havehighersharesofhousingclusteredwithin80metersofstations(21.9%versus17.2%);

46

havehighersharesofprivatehousingandsubstantiallylowersharesofsubsidizedhousing;and

averagesmallerhouseholdsizes,indicatingfewerchildrenperhousehold.

AmongtypesofR+Pprojects,Table3.1reveals:

housingwasmostconcentratedinstationareaswithlargescaleresidentialR+Pprojectsandleastconcentratedinareaswithpredominantlyhighriseoffices;

thestrongestprivatehousingorientationwasinstationsareaswithhighriseofficeandhighriseresidentialhousing,whilethelargestsharesofpublicandsubsidizedhousingwasinstationareaswithmidriseresidentialR+Pprojects;and

thelargesthouseholdsizeswereinstationareascharacterizedbyhighriseofficeR+PprojectsandthesmallestwereinthosewithpredominantlyhighriseresidentialR+Pprojects.

3.4 TypologiesandRidershipPerformanceAsnotedearlier,partofthelogicbehindbuildingatypologyofR+PprojectsandstationareahousingwastoexplorewhetherMTRridershipvariedsignificantlyamonggroupings.OnehypothesisexploredwaswhetherstationswithmoremixeduseR+Pprojectsandlandusepatternsexperiencedamoreevendistributionofriderswithintheweekday(i.e.,peakandoffpeak)andbetweenweekdaysandweekends.Notably,settingswithshoppingandretailintermixedwithhousingandofficescouldbeexpectedtogeneraterailtripsthataremoreevenlydistributed.Moreover,onemightexpectabalanceoftravelflowsinmixedretailofficehousingsettingsi.e.,stationsfunctionsasbothtriporiginsanddestinationsatallhoursoftheday.ExperienceswithmixeduseTODsinsettingsasvariedasArlington,VirginiaandStockholm,Swedengenerallybearoutthesehypotheses:morebalanced,mixeduseenvironmentsproducedmorebalancedtransitdemand(Cervero,etal.,2004).DoesthesameholdinHongKong?Ananalysisofmeanstatisticsonridership,ridershipgrowth(20012005),and

47

variousbalanceindicesrevealednostrongpatternamongstationsbasedontypesofR+Pproject.ThisisrevealedbyTable3.2ComparedtoNonR+Pstations,Table3.2showsthatstationswithR+Pprojects:

averagedlowerweeklyridershipbutexperiencedsubstantiallyhigherridershipgrowthbetween2001and2005(13.2%versus8.8%);

hadproportionallymorepeakmorningthanpeakeveningridership;

hadsimilarsharesofstationentriesandexitsinthemorningaswellasbalancebetweenweekdayandweekendridership;and

werecomparablyaccessibletotheCentralStation(i.e.,bothgroupsaveraged17minutespeakperiodtraveltotheCentralStation).

AmongthefiveclassesofR+Pstations,Table3.2shows:

substantiallyhigherweeklyridershipforhighriseofficeR+Pstations;

dramaticallyfasterridershipgainsforlargescalemixeduseR+Pstations;and

themostbalanceinpeakperiodstationentriesandexitsatlargescaleresidentialstations.

WhileridershippatternsdonotvarydramaticallybytypesofR+Pstationsettingsandthebalancedflowhypothesesformixedusesettingswerenotborneout,thefindingofsubstantiallyhealthierridershipgainsforstationswithR+PprojectsversusthosewithoutsuggestsR+PstationscouldbeproducingmorethandirectfinancialbenefitstoMTRC.Thegainsinfareboxreceiptsfromridershipgrowthmightbeasidebenefit.Moreover,noneofthesetypologiespresentedinthischapterreflecturbandesigncharacteristicsandthustheTODlikepedestrianorientationofmanyR+Pprojects.InChapterFour,theinfluenceofR+Pprojects,andinparticularTODdesigns,onridershipisexploredfurther.Butfirst,itisusefultogaingreaterinsightsintotheurbandesigncharacteristicsandpedestrianprovisionsofR+Pprojectsandtheirstationsurroundings.Forthispurpose,weturnedtocasestudies,thefocusofthenextchapter.

48

Table3.2.ArithmeticMeansofHousingStatisticsforMTRStationswithR+PProjects:ComparisontoNonR+PStationsandAmongFiveR+PBuiltEnvironmentTypes

Weekly

Ridership

RidershipChange

(%)AM/PMBalance

In&OutBalanceIndex

Weekday/WeekendBalance

TravelTime(Min.)AM PM

25R+P 635,091 13.2 1.16 0.62 0.74 1.65 17 HO

(highriseoffices) 1,125,397

3.5 0.80 0.53 0.57 1.82 4 HR

(highriseresidential) 522,468 7.3 1.13 0.55 0.75 1.65 12

MR(midriseresidential) 651,144 15.4 1.23 0.58 0.77 1.58 22

LR(largescaleresidential) 519,049 10.0 1.29 0.78 0.86 1.59 22

LM(largescalemixuses) 361,539

67.0 1.30 0.59 0.68 1.63 14

26NonR+P 670,888 8.8 1.07 0.64 0.74 1.64 18 51StationTotal 653,341 10.9 1.11 0.63 0.74 1.64 17 Note:

WeeklyRidership:numberofweeklyriders,2005 RidershipChange:Percentincreaseinweeklyridership,2001to2005 AM/PMBalance:(AMridership/PMridership)onweekdays,2005 In&OutBalanceIndex=

OutInOutIn

+ ||1 whereInequalsstationentries

andOutequalsstationexits;computedforbothAMandPMpeaks.Rangesfrom0to1,with0indicatingmaximumskewness(i.e.,onlyentriesorexits)and1denotingmaximumbalance(comparablecountsofentriesandexits).

Weekday/WeekendBalance:[5weekdayridership/(weekendridership*2.5)] TravelTime:TraveltimetoCentralStation(minutes)

49

ReferenceCervero,R.,S.Murphy,C.Ferrell,N.Goguts,Y.Tsai.2004.TransitOrientedDevelopmentinAmerica:Experiences,Challenges,andProspects.Washington,D.C.:TransportationResearchBoard,TCRPReport102.

50

51

ChapterFourCaseStudiesofR+PProjects:UrbanDesign

andPartnershipArrangements

4.1 CaseSitesandDataCollection

TogaininsightsintotheurbandesignsofR+Pprojectsandtheirsurroundingsaswellaspartnershiparrangements,casestudieswerecarriedout.InconsultationwithMTRplanningstaff,onerepresentativecasefromeachofthefiveR+Pprototypeswasselected.Additionally,asabasisofcomparison,caseswerechosenfromtwoothersettings:MTRstationswithoutR+PprojectsandHongKongneighborhoodswithoutMTRservices.Table4.1liststhechosencasestudysites.FivestationswithR+Pprojectswerestudied,spanningthefiveR+Pprototypes.Figure4.1showsthelocationsofthesefiveprojects.Table4.1alsoliststhethreenonR+Pstationsthatwerestudied:onewithmainlyofficeuses(QuarryBay),onewithpredominantlyresidentialuses(NgauTauKok),andonewithmixedofficesandretail(CausewayBay).ThetwononMTRservedneighborhoodswerechosentorepresentbothurbanandsuburbanlikesettings.Foreachcasestudysite,aQualityofCatchmentAreasurveywasconductedinmidMay2007.InconsultationwithMTRCplanningstaff,between3and5walkingcorridorswerechosenthatconnectedtheMTRstation(orcommunitycenterfornonrailneighborhoods)toadestinationonorneartheedgesofa500meterradiusfromthestation.Figure4.2showstheselectedwalkwaycorridorsfortwocasestudysites:HongKongandCausewayBaystations.Thefieldsurveyorwalkedtheentiredistanceofeachcorridor,takingphotographsandrecordinginformationon:walkingdistance;sidewalkandfootbridgeprovisions;signage;retail/consumerserviceprovisionsandactivities;pedestriancirculation;multimodalconnectionsandprovisionsformotorizedvehicleaccess;andopenspace,landscapingandpedestrianamenities.Appendix2presentstherecordedsurveyresultsforeachcasealongwithphotographsandamapshowingbuildinglocationsandwalkingcorridors.InthecourseofstudyingthefiveR+Pstations,informationwasalsoobtainedonpartnershiparrangementsnotablytherolesofpublicandprivatesectorstakeholdersinprojectconstructionandmanagement,mechanismsforsharingcostsandprofits,andassetownership.Section4.5ofthischapterpresentsthesefindings.

52

Table4.1.CaseStudySites

Figure4.1.CaseStudyMTRStationswithR+PProjects

R+PCases NonR+PCases NonStationCases

MTRStation

R+PTypeMTRStation

PrimaryLandUse

Neighborhood Setting

Admiralty HighRiseOffice(HO)

QuarryBay

Office EastSimShaTsui

Urban

TinHau HighRiseResidential(HR)

NgauTauKok

Residential SouthHorizons

Suburban

HangHau MidRiseResidential(MR)

CausewayBay

Office&Retail

TungChung LargeScaleResidential(LR)

HongKong LargeScaleMixedUse(LM)

53

Figure4.2.ExamplesofSelectedWalkingCorridorsforCaseStudyField

Surveys:HongKongandCausewayBayStations4.2 R+PCasesThissectionsummarizesthecasestudyfindingsforeachofthefiveR+Pbuiltenvironmentprototypes:Admiralty(HighRiseOfficeHO);TinHau(HighRiseResidentialHR);HangHau(MidRiseResidentialMR);TungChung(LargeScaleResidentialLR);andHongKong(LargeScaleMixedUseLM).WhilenotnecessarilyafullyrepresentativesampleofR+Pprojects,thecasesitesarenonethelessillustrativeofthekindsofR+PdevelopmentsMTRChaspursuedovertime.Admiralty(HO)TheR+PprojectaboveMTRsAdmiraltystationoccupiesa0.7hectaresite,featuringhighriseofficetowerswithlowerlevelretailinanenclosedshoppingmallconfiguration(Figure4.3).ItrepresentstheHighRiseOffice(HO)typeofR+Pproject.Openedin1980,AdmiraltystationliesinthemidstofanactivecommercialdistrictneartheheartofdowntownHongKong.ItsmixeduseairrightsdevelopmentisamongMTRCsearlygenerationR+Pprojects.TheAdmiraltyStationreceiveshighmarksforphysicalintegration(Photo4.1).Vertically,theupperlevelofficesaswellasthelowerlevelPTI(publictransport

Causeway Bay

12

3

4

Hong Kong

2

3

4

1

6

T5

Hong Kong

2

3

4

1

6

T5

54

Figure4.3.AdmiraltyStationR+PProject:Site,BuiltEnvironment

Attributes,andStationLocation

interchange)functionsaredirectlytiedtothestationconcourseviabanksofelevatorsandescalators.Horizontally,welllitentrancesopenontosurroundingstreetsandanetworkofgradeseparatedfootbridgeslinktosurroundingblocks,allowingpedestrianstoavoidstreetleveltrafficconflicts.Thesitealsohasamplepedestrianamenitiesincludingopenspace(HartcourtGarden)andmultiplevistasofthebay.

TinHau(HR)

TheTinHaustationsR+Pprojectismainlyahighriseresidentialtoweronafairlysmallsite,producingaplotratioabove14(Figure4.4).Completedin1989,thisprojectisoftheHighRiseResidential(HR)R+PtypeandamongMTRCsearliestportfoliosofR+Pprojects.Thesurroundingneighborhoodconsistsmainlyofresidentialtowersandanagingretaildistrict.

55

Photo4.1.AdmiraltyStation:VerticalandHorizontalIntegrationAsrevealedbyPhoto4.2,theTinHaustationisconnectedtosurroundingsviaatgradesidewalks.Ithasampleprovisionsforcarparkingandbusconnections,althoughthesomewhatimposingscaleoftheseintermodalfacilitiesdetractsfromthepedestrianenvironment.Apocketparkdoesabutthestation,however,aniceamenityinlightoftheareashighdensities.Overall,TinHausR+Pprojectwasdesignedmainlywithfinancialobjectivesinmindwiththequalityofpedestrianenvironmentgivenmodestattention.

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Figure4.4.TinHauStationR+PProject:Site,BuiltEnvironment

Attributes,andStationLocation

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MTR Entrance/Exit Public Transport Interchange

Large Parking Area Neighborhood

Photo4.2.TinHauStation:ConnectivityandParkingProvisionsHangHau(MR)

Completedandopenedin2005,theR+PprojectattheHangHaustationmarksachangingperspectiveamongMTRCmanagementabouturbandesignandtherelationshipofR+Ptosurroundingcommunities.Notably,astrongemphasisisgiventoplacemakingandTOD,notunlikewhatonefindsatsuburbanScandinavianrailstations,asdiscussedinthepreviouschapter.HangHausR+Pprojectisalmostexclusivelyresidential.Withamoderatesizesiteandaplotratioofnearly8,itbelongstotheMidRiseResidential(MR)R+Ptype(Figure4.5).Some200metersbeyondthestationispublicandsubsidizedhousingbuiltseveraldecadesago.AsrevealedbyPhoto4.3,HangHaustationsR+Pprojecttendstotheneedsofresidents,shoppers,andpedestriansquitewell.TheR+Pprojectclearlydistinguishestheprivateandpublicrealms.Owneroccupiedapartmentsare

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Figure4.5.HangHauStationR+PProject:Site,BuiltEnvironment

Attributes,andStationLocation

directlytiedtoanicelylandscapegardenandprivateclubhousethatsitsabovethestation.Residentsalsohavedirectelevatorconnectionstothestationconcourseandlowerlevelshoppingmall.Aphalanxofsecondlevelfootbridgeslinkstheshoppingmallandstationtothesurroundingneighborhood.Overall,HangHausR+Pprojecthasacomfortable,humanscalefeelandadesignthatnotonlyinstillsasenseofplacebutalsoprotectsthefinancialinvestmentsoftenants.

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Integrated Residential Area Community Club atop the Station

Integrated Shopping Mall Footbridge

Photo4.3.HangHauStation:PedestrianIntegrationandAmenities

TungChung(LR)SituatedonMTRsairportextensionline,theTungChungstationsR+Pprojectwasbuiltatafundamentallydifferentscalethanmostofitspredecessors.Occupyinga21.7hectareparcel,TungChungwasconceptualizedandbuiltalongthelinesofamasterplannednewtown,comprisingpredominantlyresidentialhousingintermixedwithretailshops,offices,andahotelnexttothestation(Figure4.6).TungChungwasalsodesignedwithTODprinciplesinmind(Photo4.4).Severalhundredmetersfromthestationliesanarcof30plusstoryresidentialtowers,connectedtothetowncenterbyanetworkofcoveredwalkwaysandfootbridges.Uponexitingthestation,MTRpatronsaregreetedbyaspacious,attractivelylandscapedcivicsquaredottedwithpublicart.Thusratherthanbeingoverwhelmedbyshadowcastinghighrisetowers,asfoundinthedenserpartsofHongKong,thoseleavingthestationstepintoaniceopenspacethatwelcomessunlight.ThefeelofwalkinginandaroundtheTungChungstationisqualitativelydifferentthanthatfoundatolderMTRstations.

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Figure4.6.TungChungStationR+PProject:Site,BuiltEnvironment

Attributes,andStationLocationWithmosthousingfiveormoreminutesfromthestation,thedesignersofTungChungsR+Pprojectwereparticularsensitivetoconcernsoversafetyandsecurity.Thestationconcourseandadjoiningmallarebrightlylitatnight.Soisthenetworkofprotectedpedestrianwaysthatlinktosurroundingtowers.Throughouttheproject,cartrafficandpedestriancirculationarecompletelyseparated(Figure4.7).

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Station Square Mall & Station

Pedestrian Space in Mall Footbridge to Residential Towers

Photo4.4.TungChungStation:PedestrianProvisionsandAmenities

Figure4.7.SecondLevelSkybridgeNetworkatTungChungStation

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HongKong(LM)Openedin1998asanintermodalstationandeasternterminusoftheairportextension,theHongKongstationanditsairrightsdevelopmentshowsthatTODdesignsneednotbelimitedtogreenfieldsandsuburbs.SituatedintheheartofHongKongsbustlingcentralbusinessdistrict,themixeduseR+PprojectatHongKongstationnetsoutatamoderateplotratioof7.3owingtothe5.7hectareparcelitsitson(Figure4.8).Builtaspartofacityledwaterfrontredevelopmentinitiative,thestationanditsenvironshaveasurprisinglygenerousamountofgreeneryandopenspace(Photo4.5).TheHongKongstationisaveritablebeehiveofactivity.AnchoredbythetoweringInternationalFinancialCenter(IFC),HongKongstationistheinternationalfaceofHongKong.AFourSeasonshotelalsooccupiesthesite.Thestationssubterraneanandgroundlevelsarefunctionallytiedtotheairportline,buslines,theStarFerry,taxis,andaPublicLightminibusterminus.Anairportcheckinfacilityinthestationallowspassengerstohoponexpresstrainsandgodirectlytopassportcontrol.AcavernousundergroundpedestrianpassagewaywithfastmovinghorizontalescalatorsconnectstheHongKongandCentralstations.Atthesecondlevelthestationconnectstoamodernshoppingmall.Beyondthestationsite,anetworkoffootbridgeslinkssurroundingofficesandtheharborfront.Wellplacedsignageanddigitalscreensconvenientlydirectpedestrianstodestinations,enhancingtheareaslegibility.Thestrongaccentplacedonpublicart,openspace,greenery,andcivicareascontributestothesitesaestheticismandsenseofplace.

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Figure4.8.HongKongStationR+PProject:Site,BuiltEnvironment

Attributes,andStationLocation

4.3 NonR+PCasesAsrevealedbythefieldsurveysandphotographsinAppendix3,theselectednonR+PcasesarepolaroppositesofR+Pstationswithregardstophysicalintegration,connectivity,andpedestrianamenities.ThisisespeciallythecaseincomparisontoMTRsnewergenerationofR+Pprojects,suchasTungChungandHongKongstations.AshasbeenthecaseelsewhereinHongKongwheregrowthpressureshaveoverwhelmedtheabilitytocomprehensivelyplan,thenonR+Psitesgivemarginalattentiontotheneedsofpedestriansandinsomeinstances,intermodalconnections.

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Corridor to Central Art Space Multiple Layers

Well Placed Signage Pedestrian Deck Long Foot Bridge

Integrated Hotel Footbridge to Harbor Public Open Space

Photo4.5.HongKongStation:ConnectivityandAesthetics

NonR+PStationsNarrowsidewalksamidstbusystreettraffic(QuarryBay),stationsboundedbybusyhighways(NguaTauKok),andthelackofcoordinatedsignageandlegiblewalkwaycorridors(CausewayBay)renderthenonR+PcasesfarlesspedestrianfriendlythantheR+Pcases.ThephotographsandsurveynotesinAppendix3suggestthatareasimmediatetothesestationsevolvedinanadhoc,uncoordinatedmanner.Pedestrianamenitiestendtobefewandfarbetweenatthesestations.StationsthemselveshardlyhavethesignatureTODfeatureoffunctioningasneighborhoodhubs.NonMTRServedNeighborhoodsThetwocasestudyneighborhoodsnotservedbyMTRarealsomissingsomeofthekeyelementsofwelldesignedR+Pprojects.One,EastSimShaTsui,liesina

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dense,predominantlyresidentialpartofKowloon,servedbytheformerKowloonCantonRailway(KCR)(thatmergedwithMTRCinDecember2007).Howeverthesurroundingneighborhoodpredatestherailwaystation,whichwassitedbasedonlandavailability,nottoleverageredevelopment.Thus,theneighborhoodsspatialpatternisnotstationbased;itlacksafocalpointandmuchinthewayofpedestrianamenities.Theonecasestudysitewithnorailwayservices,SouthHorizons,reliesonbusestoconnectresidentstothecentercity.Suburbanincharacter,theSouthHorizonsneighborhoodislacedbyatgraderoadwaysandsidewalks.Pedestriancirculationismultidirectional,detractingfromtheareassenseofplace.4.4 CaseStudySummary:LessonsonUrbanDesignAsasupplementtothepreviouschaptersquantitativeanalysisforbuildingtypologiesofR+Pprojects,thequalitativeassessmentspresentedinthischapterspeaktothesofarmissingDofthe5DsDesign.AcomparisonoftheurbandesignsofstationswithR+PprojectsversusothercaseshighlightstheimportanceofTODandplacemakingattributesdiscussedinChapterTwo:connectivity,comfortability,aestheticism,amenities,legibility,andnaturalsurveillance.Below,keydifferencesbetweenR+PandnonR+Pcasesinregardstotheseandotherelementsallofwhichbearontheneedsofpedestriansaresummarized.HorizontalConnectivityandIntegrationAllR+PprojectsarephysicallyintegratedwithMTRstations(withtheexceptionoftheTinHaucase)andsurroundingbuildings.Connectionstendtobedirect,safe,wellilluminated,andspacious.ThenonR+Pstationcases(QuarryBay,NgauTauKok,andCausewayBay)havenoticeablypoorerconnectivityandfewerpedestrianamenities(Photo4.6).Footbridgesfromnearbyresidentialtowersthatabruptlystopshortofrailstationswerefoundintwoinstances.

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Photo4.6.ContrastsinPhysicalIntegrationandConnectivity:QuarryBayandAdmiraltyStations

VerticalConnectivityandIntegrationMostR+Pstationsdoagoodjoboflinkingconnectingmodesofbothmotorizedandnonmotorizedtrafficthatoperateadifferentlevels.Typicallygroundfloorsandbelowaredevotedtomotorizedtransportcarparkingandbuses.Abovegroundlevelsaremos