Rebuilding Our Urban Heritage
Issue 38 - Feb 08

In Asia's rapidly developing cities, high land values mean that the development potential of a given site inevitably dwarves the value of any existing structures. Accordingly, urban redevelopment has become a byword for the destruction of the old. But does the conservation of urban heritage really have to fall a distant second to the achievement of economic value?

A well conceived, designed and implemented redevelopment can preserve history, rejuvenate an entire district and achieve financial goals for the parties involved. Yet urban renewal projects across the region have often fallen short of achieving the correct balance between the conservation of heritage and the realisation of profit. In some cases, such as the imminent demise of Beijing's Hutongs and the swiftly disappearing vestiges of Hong Kong's colonial and traditional past, it seems that conservation is seem as merely an impediment to progress, and a barrier to value creation.

All is not lost however. Government authorities, developers and end-use occupiers alike are beginning to wake up to the idea that the destruction of heritage is a zero sum game. While one party may benefit today, eventually all parties will pay. A number of successful projects across the region are also showcasing how, with the right approach to planning and design, there is significant value to be created in an approach that creates something new out of something old.

Role of Planning
Planning is good for redevelopment, it's complimentary," says Zhu Jieming, Associate Professor, Urban Planning & Management Research Group Leader, National University of Singapore. Theoretically speaking, he explains, planning is simply a public control of land usage. In practice however, the situation is much more complex, with public and private interests often intersecting or even at odds with each other.

Planning, however, should never be seen as merely serving one side over the other in the public-private debate. "Sometimes developers complain that planning regulations are too strict, too inflexible, but they are wrong," insists Zhu. He explains the role of planning in creating a good urban renewal project. Firstly planning can prevent incompatible land uses adjacent to each other, removing the risk of a paper mill being built next to a five star hotel. Planning can also ensure the provision of public amenities, such as greenery and open space These are often things that a private developer may not beinterested in supplying but which are crucial for a good public area.

Good planning should also include some form public investment. Redevelopment of existing buildings and infrastructure can be too costly for private developers to realise a reasonable profit. Also, concludes Zhu, room should be allowed for market driven initiatives, to allow for the meeting corporate as well as public needs.

Sometimes developers complain that planning regulations are too strict, too inflexible, but they are wrong.

Designing Heritage
According to Dr. Peter Cookson Smith, Director, Urbis Limited, "Good urban regeneration generally requires two things, the ability to look at the exercise in terms of not merely the physical outcome but in social, economic and environmental terms, as well as recognising local heritage and conservation." He cites a number of excellent examples of successful projects from around Asia.

As an urban planner, Cookson Smith is keen to differentiate between renewal, regeneration and redevelopment. "Renewal is very simplistic," he says, "It goes on all the time and happens when the value of the land exceeds what is sitting on that land. Regeneration is really something else, closely related to conservation but also to what is essentially an approach that brings together facets of social and community, economics environment and physical development." Redevelopment, on the other hand, is generally a large scale developer driven process where community voices are not heard.

"Participation is successful when you work with the community and when you have a properly put together, long term process with an identifiable community. The problem is older established communities are generally the technically poorer areas in Asian cities and the whole urban design is geared around informality, mix of uses, street interest. This makes the conservation of heritage difficult," says Cookson Smith.

Valuing Heritage
From the financial perspective, explains Kam-hung Yu,Senior Managing Director, Hong Kong, Southern China and Taiwan, CBRE and President of The Hong Kong Institute of Surveyors, the same theory of economic value applies to heritage sites as to any other. "Economic value can be priced. You can do a cost benefit analysis Commercial development, the future economic activities from the assigned land use, you can make a land valuation to an actual dollar amount.

With heritage sites, the supply side is reduced. However, depending on usage restrictions the demand side may also be affected. In order to value these types of sites, Yu explains: "You need to set the parameters. What are the existing restrictions, the future restrictions? What is the development density? Are there design restrictions, is there flexibility of uses? Can site be changed into restaurants or do we need to maintain it as government house, can we add something there? There are many, many different parameters."

Once these parameters have been ascertained, a demand and supply curve can be calculated and a price assigned accordingly. It is here, Yu continues, that un-priced economic criteria come into play. "Things like air quality, blue sky, and collective memory. How you compare these to the priced value is a matter of judgment. It's not a science, it's an art," he says. The issue of collective memory, and its association with the urban built environment has become a key issue in the debate. However, the impact of this concept and how it should affect urban redevelopment is not yet decided.

It seems like the art of redrawing our urban landscapes is currently producing mixed results. Speaking at an exhibition by the Singapore Urban Renewal Authority in November 2007, Grace Fu, Minster of State for National Development described a more enlightened approach to redevelopment and conservation, one that sets a high bar for governments across the region. "We need to take into account economic opportunities and social demographic trends in balancing our land use needs with the preservation of our legacy. This is a key long-term challenge for all of us from the private, public and people sectors." RFP

Renewal is very simplistic, regeneration is really something else, closely related to conservation.

Things like air quality, blue sky, and collective memory. How you compare these to the priced value is a matter of judgment. It's not a science, it's an art

NOMINATE NOW

Subscribe Now

Sign Up for Ezine

Past Issues