Professor and ChairDepartment of Urban Planning,

South China University of TechnologyVisiting Scholar (2015-2016)@DUSP, MIT

archcity@scut.edu.cn

03/30 2016

Challenges and Opportunities of China’s Urban Renewal

城市更新的挑战与机遇-中国思考

Shifu WANG

Currently, China is seeking new driving forces for better development. Urban renewal in China has a pressing mission: to support better quality of rapid ongoing urbanization and to transform the existing values of urban development. This lecture will introduce policy changes as well as cases of urban renewal in the city of Guangzhou to discuss the challenges and opportunities facing development strategies in China. Consideration of the challenges includes various decision-making process, profit reconfiguration, and the contested paradigm of what constitutes ideal development. Alternatively, the growing demands for high quality urbanization and changes in social behaviors indicate some opportunities for China’s urban renewal.

Outline

1）Notion：Urban Renewal as an endogenous driving force to better urbanization

2）Cases： GuangzhouRetrospective from 1980s-2010Resent 2010-2015: from “Three Old” Movement to Urban Renewal

3）Discussion: Challenges and Opportunities of China’s Urban Renewal

The complexity of the process of urbanization in China

Industrialization：manufacturing jobs, rural population to urban mobility

Globalization: international industrial division of labor

Informatization： spatial and temporal compression

Urbanization: systematic response and spatial results of exogenous, endogenous dynamics

Current china

Economic: Miracle slowing downDesakota：Chaotic landscapeSociety: ??? Transitionally restructured by new house-purchasing

Gated community: to be opened? Urban village; CBD SkyscrapersLuxury hotels;High speed rail; Ghost cities

Industralized villagesWord factory：shrinking…

Variation of GDP (% of total world economy) during rapid urbanization in typical countries

Variation of ranking of GDP (% of total world economy)

2030：China2050：India

The period of rapid urbanization（30-70%）

Speed of urbaniztion

Current policy being implemented, is made in the premise or expected rapid growth, need to re-examine and necessarily updates.

NEW NORMAL

Resources consumption

PAST NEW NORMAL

Policy transform

Thinking: from “sacrifice”to “re-feed”at the turning point to urban age(macro level)

New urbanization:Welfare shiftQuality development goalSocial development oriented

Narrow the Gaps between:economic and social developmenturban and rural developmentdeveloped and undeveloped

Thinking: from expansion to fixed development (local level)

New Normal:新常态：存量规划vs增量规划Fixed spatial planning instead of greenfield-based incremental planning.Land resources tighterEnvironmental control stricter

Urban Renewal in China:Commonly, many existing built-up areas appear to decline.Particularly, a lot of low-quality substances accompany economic growth rather than recession, as well as areas like an over-constructed ghost town.Besides, more and more affluent urban residents with the ability to consume are unsatisfied with the built environment.

Urban renewal is a kind of a city’s ability, which is visible througheveryday quality and reflects the city's intrinsic value.

Notion: Urban Renewal as an endogenous driving force to better urbanization.

Questions :How to lead the huge consumption potential releasing to better urbanization.How to associated the existing assets with strategic industrial development.How to change the policy to improve the material quality from developing level to developed.

Standard construction fee, high quality maintenance

Urban Renewal in Guangzhou：

1980s-2010: Retrospective

2010-2015:“Three Old”Reconstruction to Urban Renewal

Three OLD: old cities(declined area); old factories; old villages

1980s

East Lake Village, 1979-1982,东湖新村

Project：the first commercial housing project; the first foreign investment（10 million HK$）in real estate development; the first gated community to implement property management; since China's reform and opening 1978.Policy: No basis or experiences; Negotiation; Contract-based(heavily concerned by Party Central Committee)Paradigm：HK is advanced.

Total land area：31,200 m2

Total floor area：76,000 m2

Contract：local government provided land and municipal infrastructure; HK developer invested the capital, offering design and building construction.2/3 were hold by local government to sell to the local market. 1/3 were sold by developer in HK by HK$, first day sold out.

1990s, Liwan Plaza (荔湾广场)1995-1997golden location；Land area：about 50,000 m2 ;Floor area：310,000 m2

Project：a counterexample mostly criticized by historical preservationists，known as “the largest urban redevelopment project” at that time.Policy: “40-60” Agreement between Gov. and Developer, 40% for the resettlement, 60% was the commercial housing. Local gov. offer a set of tax free and fee reduction, as well as the public facilities.Paradigm：HK style Complex (residential towers + commercial base)

1980s-1990s-1999Historic district physically declined

Demolition-Reconstruction……

Destruction of the old city

18Lin Shusen：Mayor 1996-2003. Party Secretary2002-2006

In 1999, the Guangzhou municipal government announced that the developers were not allowed to involve the urban redevelopment within the scope of old city.

2000,made the first strategic plan in china and implement it.2000-2004: the new Guangzhou International Airport2005: established Nansha New Port and 2015 national Pilot Free Trade Zone

“40-60” policy ensured the interests of developers, but led to the increasing density of the old city with the declined quality.—— 1980s 33% gradually rised up to 60%

2000-2009: Government led，non-market Project-based, deteriorated plots of the average size 1-5 hectares worn buildings, including a large number of dangerous

三、创作实践 ： 旧城更新

Mid-Jiefang Plot Regeneration(2005-2007),解放中路

三、创作实践： 旧城更新 广州解放中路旧城改造项目（一期）

Project: Land area：9815 m2 ; Floor area：20853 before- 20129 after m2

Households: 120 before- 93 after(27 households with 2070 m2 abandoned)

Commercial areas:1500 m2

Mid-Jiefang Plot Regeneration(2005-2007),解放中路

三、创作实践： 旧城更新 广州解放中路旧城改造项目（一期）

三、创作实践 ： 旧城更新

Policy: Government led；self-balance on siteNo forced demolition and relocation, residents entirely by voluntary decision to move back, relocation or receive financial compensation.

For property owners to move back, only ¥300-500/m2 construction fee to pay for original area of the property, and ¥5000-5500/m2 for the area exceeds the original property.

Government reconstruction costs has been recovered through the sale of commercial street stores.

Paradigm：Organic update without market involvement preserve and renovate the old, while new built respect to the city context

2010-2015：从“三旧”改造到城市更新

From “Three Old”Movement to Urban Renewal

“Three Old” reconstruction was a special pilot policy given by Ministry of Land Resource to Guangdong Province, 2009Execution period 2010-2012，3 years

As of 2013, total land area 1616 km2, 21.82% of the current built-up area.

Three OLD: old cities(declined area); old factories; old villages

• Why? 为什么要进行三旧改造

Seeking land resource in the absence of incremental quota

Low efficiency of existing land use

Low quality of built-up environment

Industrial output value: 169 of the total 200 villages, lower than their own average

人均工业用地

居住建设用地比例

工绿交互边界

工住交互边界

平均用地产值

Problem: Low efficiency of the scattered land use- Shunde

• Who? 谁来进行三旧改造

• Government: Land Consolidation

• Current Land owner: priority of redeveloping

• Developer: Implicit funds for profit

• 1. 政 府：土地整备

• 2. 原业主：获得了相当的优先权（但：公平吗？）--was it fair?

• 3. 发展商：隐性的逐利资金

• fiscal execution:• Self reconstruct: • For commercial use(non-residential), pay the price disparities • For non-commercial use or creative industry, pay 30% of the market

value of business use• Governmental reservation: for market purpose• Owners: returned 60% of the total sell price or the price equal to no

more than FAR 3.5; or 40% of the total sell price(or the price equal to no more than FAR 3.5)+remaining value of the facilities +price of original land use

• Governmental taking over: for public purpose• Owners: obtain 60% of the commercial use(FAR 1.8 equal)

Reasonable compensation when taking overOwner’s priority to redevelop

Guangzhou 广州 Total ≈400 km2

•广州市旧厂房改造专项规划（2010-2020）

•Good Location and scale•Ownership simple and clear•Some buildings easily reuse

•The vast majority of the“three old”are the oldplant redevelopment orrenovation projects.

Guangzhou 广州old factories

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•Dongguan东莞•Easily permission making as “refeed 1 from 3”《关于“三旧“改造项目确定容积率和实施”拆三留一“等问题的意见》

•Project planning: no less than 1/3 public landuse for green space, roads, public facilities or infrastructure

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Market :9.64 ha valuable land.

Public gain:Transportation hub,Roads, Green space.

• 4 models:

• A. Public transfer financing model 公开出让融资模式——猎德模式。位于珠江新城，2007年拍卖融资46亿元启动改造。目前已经基本建成，由37栋高层住宅、一

所九年制义务教育学校和一所幼儿园组成，总建设用地13.1万平方米，总建筑面积约68.7万平方米，还集中迁建祠堂、整治河涌。

B. Self reconstruct, Agreement transfer financing model 自行改造、协议出让融资模式,实施全面改造——林和村模式。

位于天河区火车东站旁，人口共约2416人，总用地面积为69470平方米，原有各类房屋共计583栋。

• C. Rolling development model 滚动开发模式——花地村。位于白鹅潭经济圈核心区域，村户籍人口3366人，改造用地面积44.4公顷，建筑面积46.13万

平方米。总投资约20亿元。花地村第一期改造项目于2008年7月动工，已经基本完成。

• D. Environmental improvement model 环境建设带动综合整治——西塱裕安围、黄埔村。

•First three models are trying to change the urban village into a city.•Prior to the project review, no less than 90% of villagers must agree.

Guangzhou 广州 old villages

1980s

East Lake Village, 1979-1982,东湖新村

Liede Village, 2007-2015,猎德村

1980s

East Lake Village, 1979-1982,东湖新村

2007

2009

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Bridge and Village,CBD and Asia-game2007-2009

1980s

Great DealEast：resettlement for villagers, Far 5.2

Southwest: collective owned commercialland area 17.3 ha, Far 7

Northeast: sell to market to balance revenue ¥4.6billion, land area 11.4 ha, Far 7.8

Rebuild a group of ancestor halls and renovate the old houses along the river.

Policy: government-village-market joint ; sold part of the land to finance the reconstruction, maximize the location valueParadigm：dream model for other villages

high-modernism with nostalgia

Exotic urban village: blood-based relationship-from community to share capital Joint Company, welcoming the struggling tenants in the city.

• Environmental and functional improvement; Historic preservation• Population: 2 million; Gross Far: 1.8; • Maintain the existing total floor area: 96 million m2

Prior to the project review, no less than 2/3 residents must agree

Guangzhou 广州 old city planning cover 54 km2

In 2009, prepare for hosting the 2010 Asia Game,Government executed two major renewal projects:1) Liede Village 猎德村——dream model of urban village2) Enning Historical District 恩宁路

Enning Historical District2009-2016…

Project began in 2007, I involved in 2009 when the demolition is going on.

Feb 2015, establishment of Urban Renewal authority, firstly in China.

Revoking the “Three Old” Reconstruction Office set in Feb 2010.

1980s• Policy：capital attraction，market-driven• Paradigm：Privatization, fragment fill• Functionism, gated community

1990s• Policy：developer-government，market-driven• Paradigm：Profit Maximization, demolish-replace• HK style modernism，high density complex

2000-2010• Policy：government led, self balance, non-market, • Paradigm: Organic update, Conservative publicity bias• considering historic preservation

2010-2015: Three Old Movement• Policy：owners priority，multi-driven• Paradigm：Compromise, Multi-objective• aesthetic pluralism

"Guangzhou city renewal Ordinance” has been executed since January 1, 2016. (The Guangzhou Municipal Government order No. 134)The Ordinance include 7 chapters, regulating the general provisions, the procedures, the renewal planning, the land treatment, financing, supervision, management and so on.One of the importance provisions is that the Urban renewal approach includes not only large-scale transformation but also small-scale micro transformation like patchwork.

2016 Urban Renewal authority

恩宁路地块本次设计范围

Ongoing micro transformation patchwork : Yongqing Lane in Enning

List preservation buildings

Historical relic：2Historical building:1Traditional building：7

Status of the ownership

Maintain the Urban fabric PreservationRenovateRe-integrity the interior space…

Challenges:

1） decision-making process How to diversify the government centralized decision-making system and

originate urban renewal ideas from more directions?

2） profit reconfigurationinequity , unbalanceHow to avoid the policy-oriented profit supply to specific projects with the

bias of general fair in the city, and maximize socialization of urban renewal?

3） contested paradigm : what is good urban renewal?culture, social, aestheticHow to find and establish the adaptive and innovative prototype of Chinese

city form which should be culturally confident with live amenities?

Discussion:Challenges and Opportunities of China’s Urban Renewal

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A city, where could debate, argue and finally include all kinds of creative "weird", has the character to keep advanced.

Opportunities:

1） the growing demands for high quality urbanization 1960s born decision makersthe increasing satisfaction threshold for built environment

2） changes in social behaviors grassroot actionwe-media society

Discussion:Challenges and Opportunities of China’s Urban Renewal

Zhaohua Deng,etc, Collaborative planning in the new media age: The Dafo Temple controversy, China,

Cities 45 (2015) 41–50

A local planner (Xiangming Ma) took a photo and posted it on Weibo, along with a message condemning the demolition. The message was commented on and reposted more than 900 times by Weibo users in Beijing, Shanghai, and other cities.One week later, Ma was interviewed by several local newspapers and television programs.With the help of the traditional media, the online discussion initiated in cyberspace finally affected the public decision-making process.One and half months later, Guangzhou Municipal Planning Bureau announced that there would be no demolition until a study had been carried out into the feasibility of restoring the arcade.

Enning Concern group

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2016.03.30 MIT

Thanks

Better Urbanization: Re-feeding; Re-balance

Must. Can. Now. How

For the government, urban renewal must work with the communities, setting more social attributes than former development control, which mainly pursuits economic growth.

For the society, it is a process from the entity incubating and empowered, to maturely self-organized communities.

For the market, urban renewal is a new development model, heading to a possible great potential.

Thanks !