The University of New South Wales Thesis/Dissertation Sheet
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THE UNIVERSITY OF NEW SOUTH WALES THESIS/DISSERTATION SHEET Surname or Family name: Geha First Name: Shane Other name/s: Hesham Abbreviation for degree as given in the University Calendar: PhD Faculty: Built Environment School: Built Environment Title: Measuring the Interzonal Price Differential of Land under Varying Landuse Controls Abstract 350 words maximum: (PLEASE TYPE) This thesis was centred around two main research themes. The first was the investigation of the relationship between land value and zoning. As land changes its zoning, does this effect a value change? If so how does this occur and what is a way of measuring the quantum of such a change? The second was the research of the effects of heritage conservation overlays on land value. If Heritage Conservation Area (HCA) overlays are a manifestation of zoning then their effects on land value should be measurable and quantifiable. The thesis begins by investigating the literature available on zoning and the various landuse models on "rent gap"; "bid rent" and Actor Network Theorem. It then compares these to the empirical rezoning and planning data obtained from some twenty case studies of land parcels in NSW, which had all undergone land-value change. The data is used to derive the Empirical Value Change Equation, an equation that describes the connection between any two zones and the resulting value-change post planning and zoning transformation. The thesis also documents original research in a comparative analysis between land (and house) values inside and outside two HCAs in Sydney. The thesis found a definite relationship between zoning and land value, connected to the land's ability to generate income or capital or both in a permanent way, able to rely on by the market. The product generated must also be marketable. The HCA research found definitively that HCAs had no measurable effect on land value and were therefore not a true manifestation of zoning. Zoning change was also found to be bi-directional, with the land diminishing in value if zoned from a "Higher-and-Better" use to a lesser use. Declaration relating to disposition of project thesis/dissertation I hereby grant to the University of New South Wales or its agents the right to archive and to make available my thesis or dissertation in whole or in part in the University libraries in all forms of media, now or here after known, subject to the provisions of the Copyright Act 1968. I retain all property rights, such as patent rights. I also retain the right to use in future works (such as articles or books) all or part of this thesis or dissertation. I also authorise University Microfilms to use the 350 word abstract of my thesis in Dissertation Abstracts International (this is applicable to doctoral theses only). …………………………………………………………… ……………………………………..…… ……….………………… Signature Witness Date The University recognises that there may be exceptional circumstances requiring restrictions on copying or conditions on use. Requests for restriction for a period of up to 2 years must be made in writing. Requests for a longer period of restriction may be considered in exceptional circumstances and require the approval of the Dean of Graduate Research. FOR OFFICE USE ONLY Date of completion of requirements for Award: MEASURING THE INTERZONAL PRICE DIFFERENTIAL OF LAND UNDER VARYING LANDUSE CONTROLS Shane H Geha A thesis in fulfilment of the requirements for the degree of Doctor of Philosophy Faculty of the Built Environment November 2012 Table of Contents Table of Contents ......................................................................................................... i List of Figures ............................................................................................................. ix List of Tables .............................................................................................................. xi List of Maps ................................................................................................................ xi List of Judicial Authorities and Court Cases ......................................................... xii Notes on Language ................................................................................................... xiv Acknowledgements ................................................................................................ xviii Chapter 1: Introduction ............................................................................................. 1 1.0 - Main Objectives of Thesis ................................................................................................. 2 1.1 - Specific Objectives of Opening Chapter ........................................................................... 5 1.2 - Legislative Planning Reform ............................................................................................. 5 1.3 - Land: An Important Asset Class ........................................................................................ 6 1.5 - Landuse Zoning and Rezoning Defined .......................................................................... 10 1.5.1- Statutory and Jurisprudential Definition of Zoning ............................................................ 13 1.5.3 - Rezoning and Spot Rezoning Defined ................................................................................ 16 1.6 - Research Question ........................................................................................................... 18 1.7 - Thesis Methodology and Structure .................................................................................. 19 1.8 - Rationale for Zoning and Landuse Segregation .............................................................. 23 1.9 - Dynamics of Rezoning Land ........................................................................................... 30 1.95 - Barangaroo: Urban Renewal at the Edge of Sydney CBD ............................................ 31 1.10 - Morphology of the Thesis.............................................................................................. 35 1.11 - Outcomes and Practical Benefits of Research ............................................................... 42 1.12 - Conclusion ..................................................................................................................... 43 Chapter 2: Literature Review - Land Economics and Zoning ............................. 44 2.0 - Introduction ..................................................................................................................... 44 2.1 - The Commoditisation of Land and its Economics .......................................................... 47 i 2.2 - The Economics of Land: Theoretical Perspectives ......................................................... 48 2.2.1- J. Harve’s Eooi Effiie Priig Model ................................................................... 49 2.2.2 - J. Harve’s Eooi Lad Redevelopet Model ........................................................... 54 2.2.3 - J. Harve’s Redevelopet Tie-Return Model ............................................................... 55 2.2.4 - Evas’ Laduse Alloatio Model ...................................................................................... 56 2.2.5 - Clark’s Laduse Distae Model ........................................................................................ 57 2.2.6 - Aloso’s Bid Ret Theore ................................................................................................ 59 2.2.7 - Vero’s Ura Loatio Model ........................................................................................ 62 2.2.8 - Edel’s Lad Model .............................................................................................................. 63 2.3 - Demographic Effects of Gentrification ........................................................................... 64 2.4 - The Battle for Downtown ................................................................................................ 65 2.5 - Evolutions in the Concept of the “Rent Gap” .................................................................. 66 2.6 - Zoning in NSW: Origins and Evolution ......................................................... 74 2.6.1 - The English Planning and Zoning Story ..................................................... 75 2.6.1.1 - English 1909 Town Planning Act and its Progenies ....................................................... 76 2.6.1.2 - Planning Law of England from 1947 to Present ............................................................ 76 2.6.1.3 - Important English Cases on Zoning ............................................................................... 80 2.6.2 - Compensation for Planning Restrictions and Forced Acquisition of Land ...................... 81 2.6.3 - The Evolution of Australian Statutory Zoning .................................................................... 82 2.6.3.1 - Euclidean (or segregational) zoning ................................................................................ 84 2.6.3.2 - Performance zoning ........................................................................................................ 86 2.6.3.3 - Incentive zoning .............................................................................................................. 87 2.6.3.4 - Design-Based or Form-Based zoning .............................................................................. 88 2.6.3.5 - Enterprise zoning ...........................................................................................................