Page 99 - JCAU-6-1

Journal of Chinese
Architecture and Urbanism Urban regeneration market mechanism research

are evacuated, and the new high-value-added industries for them to choose. However, since this model is under
are introduced. However, the 5-year transitional period exploration phase, the platform companies generally state
policy proposed by Beijing to promote the regeneration that after obtaining the 50-year operating right, whether
of old factory buildings means that enterprises can use it can achieve the expected income and balance, the cost
industrial factories for commercial, office, and other input of planning, design, renovation, construction,
purposes within 5 years, but they do not need to pay land operation, and maintenance needs to be further verified
transfer fees. In actual operation, the government has not during the project. However, due to its good location, the
yet formed a clear statistical method to count the start platform companies prefer to commercialize the historical
time of the transitional period, and the enterprises in buildings, and they all have a relatively optimistic attitude
the interviews were unable to figure it out. The delay in toward the realization of the profit target.
the payment of land transfer fees may lead to the loss of
government fiscal revenue. In residential projects, through 5. Discussion
the transformation and utilization of the original idle 5.1. Constructing a market-oriented mechanism
buildings, functions such as community supermarkets for urban regeneration with multiple governance
and catering services are implanted, or leased residential structures
buildings are sublet after renovation. The functions of
property rights transactions, rents, and property services Through the analysis of the latest practical cases of urban
in these projects are mainly promoted by market entities, regeneration in Beijing, this study enriches the existing
relying on the price standards of the free market, and the literature that focuses on the acquisition and distribution
balance of the interests of all parties is achieved through of economic value and refines the governance structural
mutual negotiation. For example, in the Zhenwu Temple content of “government-led, market-operated, and multi-
project, the cost of housing acquisition and renovation is participant” proposed policies across China. The study found
about 8000 yuan/month. After decoration and renovation, that in the transformational period of urban regeneration,
it can be rented out at a price of 12,000 yuan/month. The the content of urban regeneration is more extensive, the
profit target can be achieved after 8‒10 years of continuous goals of regeneration are more comprehensive, and the
operation. In the project, the original homeowner obtains value orientation takes into account the comprehensive
stable rental income at market rental prices, which meets benefits of social needs and economic value-added
the living needs of surrounding white-collar workers and characteristics. In addition, the study believes that Beijing’s
improves the overall environment of the community and urban regeneration has formed a pluralistic governance
the house, which is a win-win cooperation. model of “growth coalition” and “equity governance.” The
study also found that different types of projects require
The comprehensive development-oriented governance
structure combines public welfare and economic value. The different governance structures. Therefore, choosing an
appropriate governance structure according to local and
key point is that it is necessary to coordinate the demands
of various property rights subjects within the area, and current conditions can give full play to the initiative of the
the establishment of a platform company for the overall government, society, and market participation.
operation has become a common choice in such projects. To cope with the complex property rights and
In the regeneration of the old city’s single-story courtyard interest pattern of urban regeneration projects, Beijing
houses, the residents independently decide to choose the has explored refined governance through a system of
appropriate regeneration or relocation compensation decentralization and responsible planners, while market
method, whose costs and benefits are basically balanced, players have also actively changed their roles from
while the government and market players invest in single businesses, such as industrial manufacturing
reconstruction costs and obtain corresponding income and real estate development, to various roles such
through the tax and rent of industrial operation at a as comprehensive property services, event planning,
later and long stage. This method essentially clarifies the industrial incubation, and fund management, and so
interests of multiple parties more fairly, especially for on. They are increasingly assuming the role of “agents”
relocated residents. Although residents generally have a between government departments and residents while
“sense of loss” and cannot obtain huge returns such as the undertaking the work of mapping the basic information
demolition of urban villages in Shenzhen, Guangzhou, and of the area and collecting the willingness to renovate. They
other places, this method is a more reasonable relocation respond to residents’ demands, provide management
compensation policy that reflects the market price of and services, and provide continuous technical services,
surrounding houses, which is about 120,000/sqm, to make operation guarantees, and supervision services, with the
monetary compensation, and to provide public housing role of “operators” throughout the process, becoming

Volume 6 Issue 1 (2024) 11 https://doi.org/10.36922/jcau.0885