Multidimensional Evaluation of Compensation for Informal Housing Demolition on Collectively Owned Land: A Case Study in Nanjing, China
Publication: Journal of Urban Planning and Development
Volume 149, Issue 3
Abstract
China has experienced rapid urbanization in the last few decades. In this context, housing demolition becomes a challenge involving people’s livelihood during the process of urban renewal. As a legacy issue, the governance of informal housing is imminent. Small-property-rights housing (SPRH) refers to long-term, large-scale informal housing built on collectively owned land in China. Although Collectively Owned Land Price Assessment Guidance stipulates that SPRH cannot be demolished forcibly without compensation. However, Land Management Law states that compensation standards depend on local governments, resulting in unfair compensation. By integrating the first-difference model (FDM) and the boundary-fixed-effect model into the hedonic pricing model, this study proposes a model of demolition compensation of SPRH based on market value standard, which takes state-owned land compensation standard and residential land floor price into account. Using the case of Nanjing, this study estimates whether Xingdu Garden’s demolition compensation deviates from a reasonable level. The results indicate that compensation is reasonable. Residents can take advantage of compensation to purchase affordable housing, and generous subsidies have significantly improved their living standards. FDM can also offer technical support for assessing the rationality of informal housing compensation. These findings, providing a reference for urban renewal and social equity, can be applied to other cities.
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Acknowledgments
The authors greatly appreciate everyone for their enthusiastic help during the writing process. The authors thank the corresponding authors for their generous support of this study. The authors also thank the reviewers for their helpful comments and suggestions.
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Published In
Journal of Urban Planning and Development
Volume 149 • Issue 3 • September 2023
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Oct 12, 2022
Accepted: Apr 20, 2023
Published online: Jul 7, 2023
Published in print: Sep 1, 2023
Discussion open until: Dec 7, 2023
ASCE Technical Topics:
- Business management
- Case studies
- Construction engineering
- Construction methods
- Contracts and subcontracts
- Demolition
- Engineering fundamentals
- Housing
- Infrastructure
- Land use
- Laws and regulations
- Legal affairs
- Methodology (by type)
- Practice and Profession
- Pricing
- Research methods (by type)
- Urban and regional development
- Urban areas
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