Institutional Analysis Of Market-Led Residential Development In Shenzen: A Transaction Cost Perspective

Abstract

The acute land scarcity in built-up areas and the strict regulations of land conversion on the urban fringe in the major cities in China highlight the importance of urban redevelopment for continuing urban growth. In Shenzhen, a novel mechanism was established to motivate the market sector and further facilitate the implementation of residential redevelopment. The local government’s role is changed to focus only on policy making and project approval whilst developers and the residents directly negotiate for compensation plan and transfer of land use. Public participation of the affected residents is specified to share the interest of the redevelopment project. However, the institutional chan..