Page 173 - The Hong Kong Green Building Council (HKGBC) 香港綠色建築議會

In Hong Kong, the Corporation has Railway DOepvpeLolaorntpudmnietnyt Share of Profit
successfully implemented a rail plus property LRDaiegnvhdetlopment
development business model as a means of
capturing added external economic benefits Land Premium
along railway corridors to subsidise railway
construction and operations. This business Government Developer
model has substantially relieved the burden
on the government and released more public GOVERNMENT
funds for other social welfare uses. Under this
business model, the Corporation funds railway Financial benefits
projects, and the property development rights
of some stations or depot-associated sites PROPERTY Finance construction RAILWAY
are granted to the Corporation. The profit & improve ridership
generated from these developments is able to
offset the high capital and ongoing operating SYNERGY
and maintenance costs of railway projects. of

The business model also enables MTR to RAIL + PROPERTY
create a sustainable community along the
railway alignment. Property developments improve accessibility
are integrated with the railway stations, & land value
giving residents convenient access to public
transport. This, in turn, stimulates patronage
and enhances land values, without the need
for government subsidies on day-to-day
operations.

Sustainable urban living &
growth generation

SOCIETY & ECONOMY

HONG KONG REPORT ON THE STATE OF SUSTAINABLE BUILT ENVIRONMENT 2014 171