Impact of comprehensive development zoning on real estate development in Hong Kong

This article presents empirical tests to examine if the comprehensive development area (CDA) where the town planning is more comprehensive has relatively higher economic values than the area outside CDA. The three hypothesis are: (i) CDAs have less environmental complaints than areas outside CDA; (ii) property sales price variances in CDAs are smaller than those in areas outside CDAs; and (iii) property sales prices in CDAs are higher than those in areas outside CDAs. These findings have important implications on efforts to consider planning policy in land use decisions.