Page 39 - JCAU-5-2

Journal of Chinese
Architecture and Urbanism Industrial space renewal in Hong Kong and Shanghai

City” (No. 355, 2004, Shanghai Planning Legislation) and the stricter industrial land classification and management
related policy control over land use change were issued, with added land use types and supporting land policies by
strictly limiting residential development projects on the local government. In the issued “Shanghai Regulatory
administrative allocation land and forbidding land lease Detailed Planning Technical Guidelines” (No. 51, 2011,
through agreement. Market incentives were suppressed, Shanghai Municipal Government Office), the land uses
and revenue generated from real estate developments for industrial research and development (R&D) (M4)
decreased; substantial administrative allocation of and scientific research and design (C65) were added
industrial land was left unused. Informal renewal came to distinguish the nuance of functions and keep land
into being at this stage when some industrial buildings income in industrial parks. The guidelines aim to promote
were retrofitted to serve office or commercial use without refined governance over industrial land but were yet to be
the alteration of land use. For some period, informal satisfied. The main problem is the lack of supplemented
renewal balanced the interests of government, enterprises, land operation rules and clear renewal actions for land use
and investors and was permitted by local government. change. Most of the renewal remains stuck to the transition
“Notice of the Shanghai Municipal Economic Commission to industrial R&D (M4), which is more simple, more
and the Publicity Department of the Municipal Party convenient, and can be exempt from land auction, leading
Committee on Accelerating the Development of Creative to mixed land use of industries, offices, and residences.
Industries in Shanghai” (No. 452, 2008, Shanghai In this regard, “Pilot Opinions on the Related Work to
Economic and Information Committee, regulation) and Add Land Use for R&D Headquarters” (No. 1023, 2013,
“Notice of Several Opinions on Promoting the Economic Shanghai Municipal Government Office) was promulgated
and Intensive Utilization of Land and Accelerating the to clarify land use types and transaction policies. The
Transformation of Economic Development Modes by opinions regulate land transaction procedures from many
General Office of the Shanghai Municipal Government” aspects, for example, development index, the nature of
(No. 37, 2008, Shanghai Municipal Government Office) the land, floor ratio, and so on. However, the market was
were issued to support the informal renewal, which disinterested in the transition as this regulation was too
to some extent pushed up the price of industrial land strict. Another round of policy adjustment took place in
(Figure 5). However, informal renewal was only a 2014 with the launch of “Implementation Measures for the
transitional solution; a formal, rational renewal path is Revitalization of Industrial Land in Stock (Trial)” (No. 25,
needed to specify the control. 2014, Shanghai Municipal Government). The measures
Since 2005, the renewal of industrial land in Shanghai clarify the land leasing policy, improving the land price for
has evolved increasingly formal. This is exemplified in R&D headquarters, introducing full lifecycle management
for land, allowing retreat from land transition and relaxing
the access at the same time, and setting lines for the ratio
of self-owned properties, thus promoting public service
and green construction. All these policies have facilitated
the transition of industrial land renewal from informal to
formal; formal renewal paths have become the mainstream
in the market, and the holistic transition has become
prevalent under a “strong government” or “omnipotent
government” environment. The factory area renewal
Figure 5. Price for industrial land in Shanghai (2004 – 2021). Source: of Bright Dairy & Food is one example to illustrate this
Ministry of Natural Resources (www.ceicdata.com) (Figure 6).

Figure 6. The holistic industrial land renewal case of Bright Dairy & Food factory. Source: Shanghai Minhang Bureau of Planning and Natural Resources

Volume 5 Issue 2 (2023) 6 https://doi.org/10.36922/jcau.0431