! Delft University of Technology A study of the urban village and its regeneration in China - the case of urban villages in Harbin Yushan Zhang Engineering and Policy Analysis Faculty of Technology, Policy and Management 8/26/2019 ! This page is intentionally left blank Title&Page! A study of the urban village and its Title regeneration in China - the case of urban villages in Harbin Yushan Zhang Author August 26th, 2019 Date [email protected] Email Delft University of Technology University Faculty of Technology, Policy & Management Engineering and Policy Analysis Program Chairman: Graduation Committee Martin de Jong First Supervisor: Thomas Hoppe Second Supervisor: Baiqing sun Acknowledgments& & This is my master thesis of Engineering and Policy Analysis (EPA) of Faculty of Technology, Policy& Management (TPM), Delft University of Technology. I want to express my appreciation to everyone who helps me with the thesis. Firstly, I want to show my gratitude to professor Martin de Jong, Doctor Thomas Hoppe, and professor Baiqing Sun. Their support gives me this chance to finish this thesis. Secondly, thanks to my family and friends. Your support and encouragement is my driving force. Thirdly, Thanks to all the students and teachers in the Engineering and Policy Analysis program. Meeting you and work together with you is such a happy experience, and I will remember it forever. Thank you! Executive&summary& Recently, with the rapid development of the economy in China, the process of urbanization is accelerating. However, in the fast urbanization process, the government's rapid expansion of the space has resulted in a large number of urban villages emerging. These urban villages locate inside the downtown area but the situation in there is different from the surrounding urban areas. These urban villages cause problems to the social security and community environment. The intelligent management and regeneration of urban village helps to optimize the urban land resources, improving urban appearance, and enhance the quality of life in villages and the city. Harbin is one of the largest cities in China. Since the reform and open-up in the 1970s in China, Harbin has developed rapidly. With the rapid development of the economy and urbanization process, the problem of the urban village appears in Harbin. To understand the real situation of the urban villages in Harbin and how to mitigate the influence of their developing process, this thesis focuses on the research question below: How do the urban villages in Harbin and their regeneration influence the surrounding area and Harbin city? This research question is analyzed from the perspective of how the urban village influences the housing value, how the urban village influence of the government and people relationship, and how the government-people-relationship and housing value change related to each other during the urban village development process. To answer the research questions, a housing value model is built to analyze how the urban village influence the housing market in Harbin. Stakeholder analysis is used to understand the relationship between the government and people during the urban village development. And all these studies are carried based on the urban village develop model and considering the situation happens in each stage of the developing process. Based on the findings in the influence on the housing market and stakeholder involvement, how do the urban village and their regeneration effect the housing market, the city image, the community life is given. Results from the analysis show that urban villages and their regeneration in Harbin have influences on the housing market in Harbin. Before regeneration, the closer houses are to the urban village, the cheaper they are. Urban villages with a low rental price also provide rental houses for low-income groups in the city. After regeneration, the regenerated urban village area provides housing land and housing supply. However, it does not have much impact on the housing market demand due to the low-income of the residents. Besides, the housing price in the regenerated village influences the average housing price in Harbin, and the number of selling houses in the regenerated village increases the total number of selling houses in Harbin. The relationship of the key stakeholders during the whole urban village develop process analyzed. In the gestation stage, the relationship between government and residents is simple and weak. However, illegal activities happen in early-stage-villages because of the under- developed situation. In the formation stage, the relationship between several parties becomes more complicated. The main issue is the game between government and owners, which should be considered well in respect of compensation. In the development stage of the urban village, the developers have to collaborate with the government and people. There could be the issue of forced eviction and demolition during the negotiation process between the developers and people. In the disappearance stage of the urban village, the relationship between government, developers, and residents becomes relatively simple. However, there are nail households left after the renovation of the urban village, which becomes a tough barrier for urban development. Based on the research of how the urban village influences the housing market and stakeholder relationship, it shows that urban villages have a close relationship with the city image. Before regeneration, urban villages have problems of the dirty and chaotic living environment, poor social security condition, disorder housing construction, and low land use efficiency. People living in urban villages cannot guarantee basic survival and quality of life. After regeneration, urban villages will merge into the city in the form of a new community or business district, which is a benefit to the city image. Besides, the successful regeneration of urban villages in the city is always good news for the city, which is always highly concerned. Beside of the community environment, urban villages also affect the city image from the perspective of government and people relationship. During the regeneration, the relationship between government and people becomes complex. Especially when it comes into the compensation issues, if the government cannot deal with it properly, villagers are easily to be angry and upset about the government. This will have a terrible influence on the government image of the city. The transformation of urban villages must consider the survival and development of the indigenous people into the scope. The government needs to take care of the villagers to get essential survival protection after entering urban life. After leaving agricultural production and entering urban life, how they can get stable economic source. At the same time, the government needs to care for low-income groups living in urban villages, who are one of the main groups of the population. Without low-income housing, these people need another proper living area. Considering the influences of the urban villages, recommendations about funding, compensation and floating population have been made. •! The ‘plan together exploit separately’ funding mode is suitable for Harbin urban village regeneration projects. This model is better to maintain the relationship between the government and people. •! Based on the government and people relationship analysis, the compensation to the villagers should be considered thoroughly to reduce the intense protest from villagers. •! The floating population plays an essential role in the urban village, which is in the urban area but has less cost of living. Their living situation including security and costing should be considered in the urban village management. Table!of!Contents Table&of&figures& Figure 1 villages swallowed up in the process of urbanization ................................................. 8 Figure 2 evolution of the urban villages .................................................................................. 11 Figure 3 theoretical framework ................................................................................................ 20 Figure 4 sample size in different districts in Harbin ................................................................ 23 Figure 5 methodology framework in this report ...................................................................... 25 Figure 6 Harbin location (China Highlights, 2018) ................................................................. 26 Figure 7 Harbin in Heilongjiang province (China Highlights, 2018) ...................................... 26 Figure 8 location of the five districts in Harbin ....................................................................... 28 Figure 9 urban villages distribution in Harbin ......................................................................... 29 Figure 10 number of urban villages in different districts ........................................................ 29 Figure 11 size of urban villages in different districts in Harbin .............................................. 30 Figure 12 population of urban villages in different districts in Harbin ................................... 30 Figure 14 economic relationship between each role ................................................................ 32 Figure 15 complete urban village regeneration mode .............................................................