Monitoring and Analyzing Unplanned Land Development of Transitional Chinese City case study of

Hao Pu March, 2007

Monitoring and Analyzing Unplanned Land Development of Transitional Chinese city case study of Shenzhen

by

Hao Pu

Thesis submitted to the International Institute for Geo-information Science and Earth Observation in partial fulfilment of the requirements for the degree of Master of Science in Geo-information Science and Earth Observation, Specialisation: urban planning and land administration.

Thesis Assessment Board

Dr. Richard Sliuzas (supervisor) Dr. Qingming Zhan (SUS supervisor)

INTERNATIONAL INSTITUTE FOR GEO-INFORMATION SCIENCE AND EARTH OBSERVATION ENSCHEDE, THE NETHERLANDS

Disclaimer

This document describes work undertaken as part of a programme of study at the International Institute for Geo-information Science and Earth Observation. All views and opinions expressed therein remain the sole responsibility of the author, and do not necessarily represent those of the institute.

Abstract

In the past 28 years, has followed the partial and gradual reform. This approach launched the economic development of the state while maintained its political and social stability. Meanwhile, it brought about a transitional economy, which is characterized by the coexistence of planned and market factors. In this transitional era, Chinese cities, while achieve economic prosperity and urban physical development, also have experienced new problems emerged in rapid urbanization. Among those phenomena, unplanned land development (ULD), which was caused by the inconsistency between planning and development, is the focus of this research.

Shenzhen, as a pioneer of the reform, provides us with a fascinating case for studying the unplanned land development in transitional Chinese cities. ULD spreads all over the city and includes all types of land uses. While underlying the inherent weakness of plan implementation, much unplanned development has driven economic growth and in some cases has led to an appropriate allocation of social and economic activities. This research examined empirically and quantitatively the ineffectiveness of master planning in Shenzhen one of China’s major transitional cities.

In this research, the three most dynamic land use types in Shenzhen: industrial land, residential land and commercial land were analyzed. They showed their specific characteristics in distribution. In the Special Economic Zone (SEZ) and non-SEZ, the unplanned industrial lands were with different intentions and mechanisms but resulted in similar proportions in the total industrial land. Under the market mechanism, unplanned industrial land was more dependent on highways than stipulated in plans. Due to ineffective planning control, unplanned industrial land had considerable impact on residential land and ecological zones. Most of the industrial lands encroached on the ecological zones were illegal land use. Unplanned residential land was also problematic because most of them were in the form of urban villages. Urban village in the SEZ was more likely and necessary to obtain a land use permit than which was outside the SEZ. Deviating from plans, commercial land in the market economy trended to locate in the city centre or on sides of neighbourhood roads.

With the aid of geo-information technology, this research analyzed the pattern of unplanned land development with respect to important spatial features and established their influence on the development pattern. Urban land development pattern in the market economy was studied. Finally, based on the findings, a few concluding remarks and recommendations were drawn with the purpose to improve urban planning and land administration in transitional Chinese cities. An important conclusion is that the urban planning practice should respect the market mechanism and intervene in the fields of environment protection and social equity where market failure often occurs.

Key words: unplanned land development, urbanization, transitional economy

i Acknowledgements

Now, as the thesis is finally complete, it is time to express my gratitude to all the people who gave me help and support in doing this research.

First of all, I would like to express my gratitude to my supervisor Dr. Richard Sliuzas. Thank you for reading my thesis and devoting your time and energy on me for discussing in both Enschede and Wuhan. Every time, your knowledge, expertise and critical comments deepened my insight into the research.

I would like to thank my SUS supervisor Dr. Zhan Qingming, for your earnest help and encouragement. Not only supervise me, also you are my mentor of life. Thanks go to Ms. Xiao Yinghui, for helping me apply the joint MSc program and process the data. Without your help, I could not study in this beautiful country and finish my research.

Thank you, Ms. Monika Kuffer, for guiding me through the early stage of the research. Thanks go to Drs. Emile Dopheide, for your help and being so nice to me during the six months in ITC. Dr. Mike McCall, your critical comments always broadened my thoughts and your encouragements always gave me much confidence. Thank Dr. Luc Boerboom and Dr. Sherif Amer for your few but valuable comments. Thank you, Ms. Marga Koelen for helping me solve the problem of Endnote.

I would like to thank Ms. Du Ningrui for your help and encouragement, your attitude and expertise in doing the research impressed me greatly. Thanks go to Mr. Yang Zhengshan for your comments and suggestions, without which I could not come up to this topic. Thanks Ms. Brenda Madrazo for reading my draft thesis and giving so many critical comments. Thanks Dr. Huang Zhengdong and Mr. Shen Jianwu for your comments and suggestions on my proposal.

Special thanks go to Ms. Qin Yuan and Mr. Xu Yuan in UPDIS for kindly answering my questions about Shenzhen and providing valuable data. I appreciate all the people that I have interviewed, thank you for sharing your knowledge and information.

Thanks go to Zhou Yuhong, Bai Lei, Pu Shi, Shan Xin, Lin Wenjin, Wang Langyue, Shi Jusong, Zhao Ting, Xu Shaona, Chen Wenbo, Wang Guoming, Li Xia, Wu Guofeng, Wang Tiejun, Wang Xiang, Wu Tianfei, Tomoko, Lim, and all my friends in ITC. I will always remember the happiness that we shared in the Netherlands.

I would like to express my gratitude to all the classmates of UPLA, especially to Thomas, Bekim, Liton, and Quang for your encouragements, friendship and all the pleasure we have shared.

Heartfelt thanks go to my dear friends Zhou Shuo, Cheng Fangfang, Xiao Zhou, Zhao Xi, Guan Yan and Liu Wei. Thanks for your help and encouragements. The colourful six months shared with you are my fortune. Joys and tears have concreted into our eternal friendship.

Finally, deepest love and thanks go to my dearest father, mother and girlfriend. Thanks for your love and understanding. You raise me up, to more than I can be.

ii Table of contents

List of figures List of tables List of acronyms

1. Introduction ...... 1 1.1. Background ...... 1 1.1.1. Urban planning in planned economy ...... 1 1.1.2. Urban reform...... 1 1.1.2.1. Housing reforms ...... 2 1.1.2.2. Urban land reform...... 2 1.1.3. Planning of transitional cities...... 2 1.2. Unplanned urban development...... 3 1.2.1. Urban planning ...... 3 1.2.2. Urban land administration...... 3 1.2.3. Definition--Unplanned land development ...... 4 1.3. Problem Statement...... 4 1.4. Research Objective...... 4 1.5. Research Questions ...... 5 1.6. Conceptual Framework ...... 6 1.7. Research Design ...... 6 1.8. Chapter Headings ...... 9 2. Transformation of Urban Space and Unplanned Development in China ...... 10 2.1. Introduction ...... 10 2.2. Transformation of urban space in China ...... 10 2.2.1. Policy and institutional changes...... 10 2.2.2. Real estate development ...... 10 2.2.3. Changes in urban governance ...... 11 2.3. Development control system ...... 11 2.4. Land use permit ...... 13 2.5. Unplanned Development in China ...... 13 2.6. Conclusion...... 14 2.6.1. Limitation of the planning system ...... 14 2.6.2. Limitation of the legal system...... 15 3. Shenzhen City and the Study Area ...... 16 3.1. An Introduction of Shenzhen...... 16 3.1.1. History ...... 16 3.1.2. Administrative regionalism...... 17 3.1.2.1. Districts...... 17 3.1.2.2. Streets ...... 17 3.1.2.3. Clusters ...... 17 3.1.3. Urban growth ...... 18 3.2. Urban planning and Urban growth pattern...... 19 3.2.1. Review of urban planning...... 20

iii 3.2.2. Urban growth pattern ...... 22 3.3. Study area ...... 25 3.4. Conclusion...... 26 4. Methodology and Data collection ...... 27 4.1. Survey of land use in Shenzen...... 27 4.1.1. Introduction...... 27 4.1.2. Land use survey ...... 27 4.1.3. The Classification of land use...... 27 4.2. Data collection...... 28 4.3. Data processing ...... 30 4.3.1. Identification of unplanned land development...... 30 4.3.2. Monitoring unplanned land development ...... 30 4.4. Analysis on unplanned land development...... 31 4.4.1. Land development...... 31 4.4.2. Land use structure...... 31 4.4.3. Inconsistency between plan and reality ...... 31 4.4.4. Analysis on unplanned industrial land...... 31 4.4.5. Analysis on unplanned residential land ...... 33 4.4.6. Analysis on unplanned commercial land ...... 33 4.5. Conclusion...... 34 5. Monitoring and Analyzing Unplanned Land Development...... 35 5.1. Development of the built up area ...... 35 5.1.1. Spatial pattern ...... 35 5.1.2. Growth of built up area...... 36 5.1.3. Spatial pattern of urban growth...... 37 5.1.3.1. Baoan ...... 38 5.1.3.2. Longgang ...... 39 5.1.3.3. Nanshan ...... 39 5.1.3.4. Futian...... 39 5.1.3.5. Luohu...... 39 5.1.3.6. Yantian...... 39 5.1.4. Land development and population growth ...... 40 5.1.5. Land development and GDP growth...... 40 5.1.6. Urban land development and fixed assets investment ...... 42 5.2. Land use structure...... 44 5.3. Inconsistency of plan and reality...... 47 5.3.1. Plan and reality ...... 47 5.3.2. Development control...... 49 5.4. Unplanned Industrial land deveopment...... 51 5.4.1. Overview...... 51 5.4.2. Development course ...... 52 5.4.3. Unplanned industrial land...... 53 5.4.4. Land use permit ...... 55 5.4.5. Spatial location of unplanned industries...... 60 5.4.6. Unplanned industries in ecological zones...... 61 5.4.7. Impact on residence ...... 63

iv 5.5. Unplanned residential land development ...... 66 5.5.1. Distribution pattern ...... 66 5.5.2. Prosperity of urban villages ...... 67 5.5.3. Residence and land permit...... 70 5.6. Unplanned commercial land development ...... 71 5.6.1. Macro allocation of commercial land ...... 72 5.6.2. Micro allocation of commercial land...... 75 5.7. Summary ...... 76 6. Conclusion and Recommendation...... 77 6.1. Conclusion...... 77 6.1.1. Land development and unplanned development...... 77 6.1.2. Industrial land development...... 78 6.1.3. Residential land development...... 78 6.1.4. Commercial land development ...... 79 6.2. Recommendation...... 79 6.2.1. Urban planning respecting the market mechanism...... 79 6.2.2. Coping with uncertainty in urban planning...... 79 6.2.3. Efficient planning control ...... 80 6.2.4. Legal status of urban planning...... 80 6.2.5. Public participation...... 80 References ...... 82 Appendix 1: Shenzhen Standard Land Use Classification and Code ( 1997 ) ...... 87 Appendix 2: Interviewer List ...... 91

v List of figures

Figure 1-1 Changing urban planning system in China...... 3 Figure 1-2 Research Conceptual Framework...... 6 Figure 1-3 Work Flow...... 8 Figure 2-1 One Report and Two Permits System...... 12 Figure 2-2 Black market land in Chinese cities...... 14 Figure 3-1 Shenzhen in China...... 16 Figure 3-2 Clusters of Shenzhen ...... 18 Figure 3-3 Urban Growth 1990 - 2005...... 19 Figure 3-4 Growth of built up density 1996-2005...... 19 Figure 3-5 Master Plan of Shenzhen in 1982 ...... 20 Figure 3-6 Master Plan of Shenzhen in 1986 ...... 21 Figure 3-7 Master Plan of Shenzhen 1996 ...... 22 Figure 3-8 Emergence from points...... 23 Figure 3-9 Point-Axis pattern...... 24 Figure 3-10 Linear Clustered pattern ...... 24 Figure 3-11 Mature Linear Clustered pattern...... 25 Figure 3-12 Network clustered pattern...... 25 Figure 4-1 Spot 5 image Shenzhen 2005.10...... 29 Figure 4-2 Process of Identifying the industries in highways’ buffers...... 32 Figure 5-1 Built up area of Shenzhen in 2005...... 36 Figure 5-2 Built up land of Shenzhen 1979-2005 ...... 36 Figure 5-3 Urban expansion 2001 2003 2005 ...... 37 Figure 5-4 Built up increase 2001-2005...... 38 Figure 5-5 Growth of population and built up area 2001-2004...... 40 Figure 5-6 Growth of GDP and built up area...... 41 Figure 5-7 Growth of per capita GDP and built up area 2001-2004 ...... 42 Figure 5-8 Occupation of fixed assets investment ...... 43 Figure 5-9 Occupation of urban expansion in six districts...... 44 Figure 5-10 Proportion of newly developed land 2003-2005...... 45 Figure 5-11 Comparison between land use proportions in Western cities, Chinese cities and Shenzhen ...... 47 Figure 5-12 Planned and actual areas of each land use type ...... 49 Figure 5-13 Permitted and unpermitted land development of Shenzhen in 2005 ...... 50 Figure 5-14 Land development without permit...... 51 Figure 5-15 Permitted and unpermitted land development in SEZ and non-SEZ in 2005...... 51 Figure 5-16 Development course of industrial land 1998-2003...... 53 Figure 5-17 Planned Industrial land and unplanned industrial land...... 53 Figure 5-18 Planned and unplanned industrial land in 2005...... 54 Figure 5-19 Industrial land of Shenzhen ...... 56 Figure 5-20 Land use permit of industrial land...... 56 Figure 5-21 Proportion of illegal industrial land...... 58 Figure 5-22 Land use permit and unplanned industries ...... 58 Figure 5-23 Component of industrial land in 2005 ...... 59

vi Figure 5-24 Dependency of industrial land on the distance to highways...... 61 Figure 5-25 Industrial land in ecological zones ...... 62 Figure 5-26 Components of industrial land in ecological zones ...... 63 Figure 5-27 Impact of industries to residence ...... 64 Figure 5-28 Proportions of Industrial land in residence’s buffers...... 65 Figure 5-29 Industries in residence’s buffer...... 65 Figure 5-30 Planned residential land and unplanned residential land...... 66 Figure 5-31 Relation of population and residential land in 2005...... 67 Figure 5-32 Urban village and normal residence of Shenzhen in 2005 ...... 68 Figure 5-33 Component of unplanned residence...... 68 Figure 5-34 Normal residence and urban village ...... 69 Figure 5-35 Four types of residence in 2005...... 71 Figure 5-36 Planned and unplanned commercial land ...... 72 Figure 5-37 Proportion of planned and actual commercial land ...... 73 Figure 5-38 Occupation of the total retail sales of consumer goods in 2005 ...... 73 Figure 5-39 Planned commerce and actual commerce 2005...... 74 Figure 5-40 Dependency of commercial land on main road ...... 76

vii List of tables

Table 1-1 Research Objectives and Research Questions...... 5 Table 3-1 Districts and areas (km2)...... 17 Table 3-2 Three Master Plans of Shenzhen...... 22 Table 4-1 Land use classification of Shenzhen ...... 28 Table 4-2 Main data ...... 29 Table 5-1 Districts and built up areas in 2005 in km2 ...... 35 Table 5-2 Growth of built up area in several major Chinese cities, 2001-2004 (km2)...... 37 Table 5-3 Built up increase (km2) ...... 38 Table 5-4 Comparison of land use standards and actual proportions 2005 (%)...... 46 Table 5-5 Comparison between plan and reality 1994-2005...... 48 Table 5-6 Land use areas in master plan and reality (km2, %)...... 49 Table 5-7 Non-construction land and Construction land...... 50 Table 5-8 Distribution of industrial land 2005 (km2)...... 52 Table 5-9 Growth of industrial land (km2) ...... 52 Table 5-10 Unplanned industries in different districts ...... 54 Table 5-11 Unplanned industries and land use permit status (ha)...... 59 Table 5-12 Industrial land and ecological zones ...... 62 Table 5-13 Residential land in Baoan Longgang and SEZ ...... 67 Table 5-14 Indicators of residence 2005 ...... 70 Table 5-15 Area of four types of residence (ha)...... 70

viii List of Acronyms

AAGR Average Annual Growth Rate BCP Building Construction Permit DCP Detailed Construction Plan DDCP Detailed Development Control Plan LUPP Land Use Planning Permit NLUC National Land Use Certificate NR Normal Residence RCDC Research Centre of Digital City, Wuhan University SEZ Special Economic Zone SOE State-owned Enterprise SSB Shenzhen Statistics Bureau SSRR Site Selection Recommendation Report SUPLAB Shenzhen Urban Planning and Land Administration Bureau TVE Town and Village Enterprise ULD Unplanned Land Development UPDIS Urban Planning and Design Institute of Shenzhen UPDIW Urban Planning and Design Institute of Wuhan UPSP Urban Planning Standard and Principle of Shenzhen UV Urban Village WUPLAB Wuhan Urban Planning and Land Administration Bureau

ix MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

1. Introduction

1.1. Background

Since China started to reform and open up, its economy was launched to boom at an unprecedented speed. During the period 1978-2004, Chinese GDP had increased by 10.3 times, reaching 18,232 billion yuan in 2005. It continued to be the fastest growing economic entity and contributed one-third of global economic growth in 2004 (World Bank 2006).

Not only brought about prosperity, economic reform also has brought about a transitional economy which is characterized by the coexistence of planned and market economies (Bian and Logan 1996; Wu 2001; Deng and Huang 2004). A series of reform acts changed the country and society rapidly. “Decentralization of decision making, market-led urban development initiatives, retreat from socialist ideology, deregulation and increase in the number of actors and conflict of interest in land development have challenged fundamentally the practice of urban planning” (Yeh and Wu 1999, pp.169).

1.1.1. Urban planning in planned economy

“The city in China has functioned not simply as a body of assets and property but more as the centre of economic and social transformation engineered by the state for both growth and non-growth considerations” (Lin 2002, pp.299). Prior to the end of 1970s, in a Soviet-style planned economy, urban planning was a tool to realize the socialist ideology of planned development and to ‘translate’ the goal of economic planning into urban space (Yeh and Wu 1999). Planners in China then did not need to bother about local urban growth. Their job was to plan for investments from central ministries and allocate the resources from central government (Zou 1996; Yeh and Wu 1999; Wang 2000; Ng 2003). They also did not need to face the trouble brought about by rapid population growth for the population movement was tightly controlled by the ‘Hukou’ system (immigration control system). But for the state, the planned economy finally led to a shortage economy. Urban development had been halted. Urban residents made up only 13% of the total population in 1978. Urban physical development—buildings, roads, services etc. could only be financed by government (Yusuf and Wu 1997; Ng 2003; Bruton, Li et al. 2005). The state’s economy was on the verge of collapse.

1.1.2. Urban reform

Since the end of 1970s, the reform and open door policy has brought the rebirth of Chinese cities and a dramatic restructuring era. The blistering speed of change and the massive scope of urban spatial reconfiguration are unprecedented in China or elsewhere in the world. Almost all Chinese cities, big or small, have experienced fundamental spatial overhaul in the last two decades. The rationing of goods, jobs, and housing was gradually replaced by market allocation (Leaf 1996).

1 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

The actions of reform were extensive and various, which have had great impacts on the economy and society. Two of them, ‘Housing Reforms’ and ‘Urban Land Reform’, have affected the urban space significantly (Wang and Xu 2002; Ding 2003; Ma 2004).

1.1.2.1. Housing reforms

Introduced in 1982, housing reforms have allowed housing to be commodified. And both domestic and global capital could be invested in housing market. The property-led urban development has become a major feature of Chinese cities and has let the cellular-type of housing structure built around work- units which was known as ‘Danwei’ system change to be restructured commercial housing. It soon broke the socialist pattern of land use that the various kinds of land use were set around the industrial land (Friedman 2005). The policy change has also contributed to urban land use change by acquiring land use rights from state-owned units for housing construction (Ma 2004).

1.1.2.2. Urban land reform

Since 1987, urban land reform re-introduced land value to the Chinese city and gave birth to urban land markets. From then on, land use rights can be obtained through negotiations with the government or sometimes through competitive bidding and auction. Especially since the acceleration of land reform in 1992, foreign and local private investment has shown a growing interest in real estate development (Wu 2001). The importance of geographic location of real estate parcels, which was inessential in socialist cities without land market, became more and more arrestive. Similar to that of western cities, land rent gradient (Hartshorn 1992) were emergent in Chinese cities. As in the cities with market economies, real estate with favourable location, good accessibility and other positive locational features commanded high locational rents (Ma 2004). State-owned industries and other state agencies whose land was allocated free before reform could benefit greatly by leasing their land to other users. Because “the profit derived from leasing land use rights can be extremely high as the difference between the market value and the value set by negotiations can be substantial.”(Ma 2004)

1.1.3. Planning of transitional cities

The experience after reform proved that urban planning has to rely on ‘economic efficiency’ and ‘technical feasibility’ to justify urban planning decisions (Yeh and Wu 1999). For example, urban planning is required to achieve a better coordinated development so that the development cost can be minimized. Secondly, urban planning has been increasingly endowed by the municipalities with the role to stimulate local growth. Thus the municipal government urges the planning authority to propose some large infrastructure projects in the urban plans and then gains investment from the state.

In socialist China, the state is the only land owner of the urban land. And it is also the solo investor of the urban infrastructure, industry, services, etc (Ng 2003; Bruton, Li et al. 2005). The reform and open door policy released the land ownership to some extent, and let the municipalities enjoy more economic independence. The local government has emerged as a powerful regulator and land supplier in real estate development (Wu 2002). Beside, cities were allowed to retain more of their taxes and invest them in the cities’ development (Walcott and Pannell 2006). All these endow the planner the responsibility to concern about the local urban growth and sustainable development.

2 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

1.2. Unplanned urban development

Though there have been some spontaneous changes (figure 1-1) in the plan making process by the Chinese urban planners in order to achieve better planning control, the legacy of the centralized planned economy still influences people’s thinking about the nature of planning. In practise, it is largely an administrative activity that can be altered to suit the governments’ development will (Yeh and Wu 1999). On the other hand, the actual planning practice is different from city to city, which also reveals the lack of the ‘spirit’ of law.

Urban System Plan

Master Plan Master Plan

District Plan

Detailed Development Control Detailed Layout Plan Plan (DDCP)

Urban Design & Parcel-Based Detailed Construction Plan (DCP)

Plans in the 1989 City Planning Act

Past Urban Planning System Present Urban Planning System

Figure 1-1 Changing urban planning system in China

1.2.1. Urban planning

As recited in Urban Planning Act of China, the function of urban planning is to define the size and economic orientation and structure of a city, to realize the goal of economic and social development of the city, to prepare rational city plans and carry out constructions to meet the needs of development for socialist modernization (Construction Ministry of China 1986). The functions of urban planning was described sound and comprehensive, however, the planning system was proved inadequate in directing development as Chinese cities moved towards a market economy (Hao, Tang et al. 2005; Qiu 2005).

1.2.2. Urban land administration

In order to steer the development process to confirm with planning intentions, “one report (site selection recommendation) and two permits (land use planning and building construction) system” was set to control development in China’s urban area (Ng and Wu 1995).The system will be described in detail in chapter 2.

3 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

1.2.3. Definition--Unplanned land development

Unplanned land development (ULD), in this research, is defined as the land development which not follows the plans. The unplanned land development takes various forms, and mostly involve in changes of land uses and planning requirements specified in plans. If the ULD is with the approval of planning authority, it is legal. If not, the development is illegal. Unplanned land development in the research includes both legal and illegal land development.

1.3. Problem Statement

When China was entering into the market economy, the planning system had not been adapted to suit the market mechanism. The contradiction between the urban planning system under the “planned ideology” and the market mechanism in the transitional economy leads to a large gap between plans and implementations. In large cities, both the population and urban land expanded beyond the limit set by the planners. Take Shenzhen for example, as a result of the rapid development, it had emerged from a small town to be the most crowded city of China using less than 20 years, the population density of Shenzhen SEZ was above 5000 people per km2, even though strict immigration limit was set and had been implemented for years (Zhao 2004). Meanwhile, the urban land expanded and encroached more and more reserved land and natural land, which would lead to an unsustainable development.

Even though plans were made with a purpose to limit the urban growth and the developing control system was set, the local government were not actually willing to restrict the expansion. In other words, “the political economy of a place will shape the role of urban planning in its development trajectory.”(Ng and Tang 2004, pp.174). In the fast developing phase, both the central government and the municipality were cheering for the economic growth and paid less attention to other indicators such as living quality, social equity, and natural environment, etc. So, unplanned land use development which contributed the economic growth was indulged, even though they were illegal sometime.

Recently, when the city entered into a mature developing phase and the central government adopted "Sustainable Development" and "Harmonious Society" to be the guidelines of the state's development. Unplanned development becomes a hot issue as it indicates the inconsistency of planning and development.

1.4. Research Objective

The main objective of this research is to analyze the pattern of unplanned land development with respect to important spatial features and establish their influence on the development pattern.

1) To develop a methodology based on GIS and remote sensing to record and analyze unplanned land developments in the Shenzhen area.

2) To analyze the difference between planned land development and unplanned land development.

3) To analyze the pattern of unplanned developed land.

4 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

4) To give recommendations on improving planning system and land administration.

1.5. Research Questions

In order to achieve the research objectives, the questions shown in the table below will be addressed.

Table 1-1 Research Objectives and Research Questions

No. Research Objectives Research Questions

To develop a methodology based on z What is unplanned land development? 1. GIS and remote sensing to record and z What are the methods to distinguish analyze unplanned land developments unplanned land development? z What are the proper indicators to evaluate in the Shenzhen area. unplanned land development? To analyze the difference between z What are the differences between planned 2. planned land development and land development and unplanned land unplanned land development. development? z What is the relationship between them? To analyze the pattern of unplanned z What are the characteristics of the 3. developed land. distribution of the unplanned developed land? z What are the impacts of the unplanned land development on the city? z What are the positive effects of unplanned land development? z What are the negative effects of unplanned land development? To give recommendations on z What are the disadvantages of the current 4. improving planning system and land planning system? administration z What can be improved to minimize the unplanned development?

z What are the vulnerable places that would undertake unplanned development? z What can be done to improve land administration?

5 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

1.6. Conceptual Framework

Master Plan and Land Use 1996 Plan

Population, Policy, Unplanned land Investment, development Infrastructure provision, etc.

Pattern of unplanned land development with respect to important spatial features

Proposed Actual Unplanned Land 2005 Land use Land use Use

Figure 1-2 Research Conceptual Framework

1.7. Research Design

To conduct this research and particularly to answer the research questions, data processing and analysis need to be done after the required data are obtained and prepared. These activities can be organized into four steps:

Step 1 Understanding the problem though literature review.

In transitional and fast developing China, unplanned land development occured in every city. The reasons of this problem are many, including 1) changing environment of the transitional society led to uncertainty of the urban development; 2) disadvantages of the unplanned development were hidden or concealed in the fast economic growth period; 3) the implementation of the plans and regulations was inefficient and the land administration was incapable. In this step, the mechanism of these reasons will be investigated.

Step 2 Obtaining the data and preparing the data.

The data includes master plans and more specific land use plans, satellite images, maps of land use survey, result of field observation, social and economic data, etc. Some maps are needed to be digitized. Statistic analysis is needed to deal with the non-spatial data.

Step 3 Monitoring and classifying the unplanned land development.

In this step, unplanned land development will be identified through comparing the land use plan and the result of the latest land use survey. The land will be classified using the same standard as the plan

6 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

and survey. The whole area of unplanned land development and each sort of land development will be displayed on the map for further analysis.

Step 4 Analyzing the spatial pattern of unplanned land development.

In this step, the maps of unplanned developed land will be compared with the distribution of the spatial features and non-spatial features of the city. Also, the patterns of each kind of unplanned land development will be studied to find the locational reasons of their distribution. The differences between planned and unplanned land development will be find out. And the positive and negative effects of the unplanned land development will be investigated.

Step 5 Draw recommendations for improving the planning system and land administration.

The research on the mechanism of the unplanned land development will give clues to improve the planning system. The analysis of step 4 will tell which kind of land will be more likely to be developed for a certain use which could give references to configure the land to suit the market- oriented urban development. Also, it will give evidence that which kind of land is vulnerable to be developed illegally, which could give knowledge to improve the land administration.

The whole research process can be demonstrated as the workflow following:

7 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Research problems and Objectives

Literature Review Characteristics of Land use Unplanned land Transitional Planning and Urbanization of Researches on development of Economy and Implementation in Shenzhen Land use Pattern Chinese cities Society China

Land use Land use RS Images Field Work Plan Survey

Proposed Actual Land use Land use

Identify the unplanned developed land

Classify the Analyze the unplanned distribution developed land

Spacial Pattern of Analyze the Unplanned distribution of each developed land sort of land use Social-Economic Data Demographics Investment Infrastructure …… Conclusions Spacial Pattern of each land use

Conclusions

Conclusion and Recommendations

Figure 1-3 Work Flow

8 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

1.8. Chapter Headings This thesis is structured into six chapters as following:

Chapter 1 Introduction This chapter states the concept of transitional economy, the definition of unplanned land development, the research problem, research objectives and the research framework.

Chapter 2 Transformation of Urban Space and Unplanned Development in China This chapter reviews the process of land and housing reform in China, the transformation of urban space, explained the drivers of unplanned land development.

Chapter 3 Shenzhen City and the Study Area This chapter introduces Shenzhen city, reviews the urban planning and development history of the city, and defines the study area.

Chapter 4 Methodology and Data collection This chapter presents the method to identify and investigate unplanned land development, the approach to select suitable indicators to analyze the unplanned developed land.

Chapter 5 Monitoring and Analyzing Unplanned Land Development This chapter monitors the unplanned developed land of Shenzhen and analyzed its spatial pattern with respect to important spatial features and establishes their influence on the development pattern.

Chapter 6 Conclusion and Recommendation This chapter presents the main findings of this research and gives recommendations for improving the urban planning and land administration in transitional Chinese cities.

9 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

2. Transformation of Urban Space and Unplanned Development in China

2.1. Introduction

In order to monitor and analyze the unplanned urban development, firstly we have to know how the unplanned development happened in China, which requires us to review the transformation process of urban space and investigate the mechanism of unplanned land development. In this chapter, the transformation of China’s urban space will be reviewed and then an initial investigation of unplanned development will be taken with the purpose to understand the mechanism behind the phenomenon.

2.2. Transformation of urban space in China

As effects of the reform, two main factors contributed to impact on China’s urban space. One is policy and institutional changes while the other is the real estate development. The former is the initial act of the reform and it paved the road for the land market in which the real estate development and other series of reform acts would be taken.

2.2.1. Policy and institutional changes

Before 1988, Chinese cities could not sell or lease land to individuals, foreign or domestic companies. The move to a market economy in which land is sold or leased at competitively bid price is undoubtedly the most important step in reforming China’s urban land management system (Dowall 1993). Since then, a market mechanism replaced the political method to determine the configuration and utilization of urban land. The mechanism of urban construction and development then changed (Zhang 2000; Zhang 2002; Sun and Xi 2003). The reform let the value of the land use right to be realised and the profit made from land leasing becomes the most important revenue and the main source of the cost of the infrastructure construction.

2.2.2. Real estate development

Rarely known, the housing reform was not to develop a market-oriented housing provision system at the beginning but to increase the housing stock by whatever means possible to ease the problem of housing shortage (Yeh and Wu 1999; Wu 2002). The policy, which is essentially a resource decentralization process, required local governments, state-owned enterprises as well as individuals to make contribution to housing investment. While the increase in the wage was subject to state control, work-units were allowed to use retained profits to invest in housing development and subsequently housing their employee.

As a result, local governments began to inject capital to improve urban infrastructure. In Shanghai, investment in infrastructure has grown from 3.6 billion yuan in 1990 to 37.8 billion yuan in 1996. In

10 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

the same period, the ratio of infrastructure investment to GDP increased from 5.2 percent to 13.0 percent. The municipality, in charge of land leasing, benefited from land revenue, thus creating the incentive to investment in land development. The local governments began to use the land leasing instrument to promote local economic growth, which now becomes the key theme in urban management.

2.2.3. Changes in urban governance

In the reform process, it is also necessary to mention the changes in urban governance. Formed by urban governance system, urban space in China was characterized by “cellular structure” in the socialist era. Through work-unit based housing provision, the workplace and residence maintained a strong link, forming the “Danwei” system (Friedman 2005). This led to the differentiation of urban space according to land use rather than social stratification. Urban land was divided up to small units, which on one hand constrained people to live in their owned walled units and communicate only with their colleagues of the factory or organization. On the other hand, the infrastructure within the work units can not be shared by the citizens, which made impossible to construct an effective urban infrastructure system. For example, an urban road usually made a dead end when met a work unit’s gate but can not pass through. From 1978, important changes occurred in the governance of cities. The Danwei continued, but Danwei were no longer required to provide housing and basic services. This change, on one hand finished the structure of the self-served cellular pattern of urban land; and on the other hand let go the prosperity of property development.

2.3. Development control system

According to the Urban Planning Act, permission is required for all land development projects, no matter whether the developers obtain land from administrative allocation or from the land market. All development proposals are examined by the local planning authorities under the supervision of municipal governments. “One report and two permits” system (figure 2-1) is the main instrument that applied to evaluate development proposals according to the planning intention in the city plans and other government requirements or considerations.

As shown in Figure 2-1, the Site Selection Recommendation Report (SSRR) is the initial permission in obtaining the land use permit. The developers apply for the SSRR to the urban planning authority to ensure that the chosen land conforms to the planning requirements. After that, with the SSRR, the developers have to apply for a Land Use Planning Permit (LUPP). The LUPP includes the land boundary, master layout plan and other land use specifications. For any subsequent change of land use, scope and boundary, a new or revised LUPP is required. Following, the developer can apply for the Building Construction Permit (BCP) which is to ensure that the proposed project will comply with the detailed planning and design requirements.

11 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Developer Government Decision to develop Intention to develop a land parcel

Economic Planning Commission Project approval

Urban Planning Authority Urban Planning Authority Site Selection Recommendation Report Undertake Planning

Developer & Government Government & Developer (Land Allocation) Administrative Tender & Negotiation Allocation Auction

Economic Planning Commission Project approval

Developer Apply for Land Use Planning Permit to Urban Planning Authority

Urban Planning Authority Issue Land Use Planning Permit to approved application

Developer Apply for Building Construction Permit to Urban Planning Authority

Land Management Authority Land Use Permit

Urban Planning Authority Issue Building Construction Permit to approved application

Figure 2-1 One Report and Two Permits System (Source: Ng 2000, pp. 412)

Though the development control system is at the core of the land development process in China, but it is ineffective because the system allows urban officials in the planning department to exercise discretionary power. In theory, planners should make decisions according to the intentions that specified in plans. But in practice, the criteria used in assessing the development applications are not specified and transparent. As argued in M. K. Ng’s paper (2000), the main constraints of the development control system are three. First, the decisions of the planning department is interfered by the government officials, because in China, local planning departments are usually administratively subordinated to governments. The interferences are mainly with the purpose to promote economic growth. Secondly, when aggrieved developers submit appeals to the government-appointed city mayor for resolution, “the mayor would have the opportunity to influence planning decisions and arbitrate over the validity and interpretation of planning legislation and policies” (pp.413). Finally, the cooperation between the planning-related agencies is not effective, which influences the efficiency of controlling the development.

12 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

2.4. Land use permit

‘One Report and Two Permits' are documents needed for constructions in urban area, but they are not representing legal land use rights. Normally, before signing a contract of leasing the land use right, a SSRR has to be applied, it indicates the potential land use type, a draft of territory and a rough number of area. The contract has to be accorded with the SSRR. After the contract is valid, developers can apply and obtain the LUPP from planning authorities. Then, after the payment of the ‘Land Leasing Fund’ and tax, a precise survey of the land parcel, the developers can acquire the ‘National Land Use Certificate’ (NLUC). NLUC is the final legal document that declares the ownership of the land use right, the valid time scope, the territory and the land use type. However, in real cases, the course often reversed. In Shenzhen, especially Baoan and Longgang districts, both the investors and the governments are too impatient to stand the complicated time-consuming procedure of preparing a project. What usually happens is the investors urge the local authorities to sign the contracts first and recruit the documents while preparing the constructions. For the need of attracting investment and enhancing the local economic status, local governments sometimes urge big investors to complicate the leasing procedure and prepare the NLUC quite initiatively for them. And the Municipal government and upper level governments, considering the economic development and realising the limitation and low-efficiency of the existing procedure, acquiesce to such activities. In practise, no matter in which phase, the land use is regarded as permitted and be protected. Thus, obtaining one or more documents such as SSRR, LUPP, Land Use Leasing Contract or other formal agreement approved by the government, would stand for legal permit.

2.5. Unplanned Development in China

Land reform causes some problems that the existing urban planning system seems to be unable to solve properly. In this land use system, a large proportion of land has been allocated through administrative method, while some plots are leased to the land market. The supply of leased land is monopolized by the municipality. Because the land leasing market is a constrained market, the difference in land prices through different land allocation methods can be enormous, which often led to the development of a black land market (Yeh and Wu 1996) (figure 2-2). This let to the competition between the municipality, the property developer, the existing land users and the farmers who are attempting to capture the differentiating land value (Yeh and Wu 1999).

13 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 2-2 Black market land in Chinese cities (Source: Yeh and Wu 1999, pp.229)

The characteristics of the transitional economy and society determined that the unplanned development occurs in almost every Chinese city. On one hand, the reform and opening up policy let go a relatively free land markets. But on the other hand, the planning system, inherited the soviet-style blueprint system, fixing the land use in every land parcel in urban areas. The limitation of planners’ professional ability, the accuracy of prediction about the future development, and most significantly the uncertainty in the transitional economy, lead to the deviation of urban land development from plans.

2.6. Conclusion

In China’s transition from a centrally controlled system to a market-oriented planning and development, on one hand, the introduction of the land market turned the urban space into a contested terrain of different development interests, on the other hand neither the planning nor the legal system was well prepared in guiding and regulating development. The conflict between the new circumstance and the old-style planning system results in the unplanned urban development.

2.6.1. Limitation of the planning system

Urban planning in China, under the Soviet-style planned economy, is the planning for the scheme of the state’s construction. It is a static blue-print system. Since reform, some planning theory were introduced from western countries, which including “planning is a dynamic process”, “social planning”, “strategic planning”, etc. And the content of the plan had been extended. But the planning system can not get rid of the idea that the planning is focussing on the physical construction. Regarding the population prediction and the land consuming capacity prediction are the most important work, planners portrayed the blue-print according to the predictions. The master plans are made in very detail that it takes too long for both the preparation and authorization process. This led to

14 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

a leg between the plan and the existing situation, especially in the recent decade that the development is extremely rapid.

2.6.2. Limitation of the legal system

Published in 1980s, the Urban Planning Act of China is not possible to reflect the situation or take effect on the problem in the recent planning practice, because it has never been adapted to suit the development. It even not mentions anything about the land leasing or transfer of the state’s owned land. The master plans, according to the Urban Planning Act, are legal document that can not be disobeyed or neglected. But in practice, they are not treated as laws. Thus, the plans could hardly regulate the activities of the property developers or governments. The legal system is not capable in regulating or controlling the urban development (Ng 2000; Shi 2000).

15 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

3. Shenzhen City and the Study Area

3.1. An Introduction of Shenzhen

3.1.1. History

Shenzhen is one of the top 5 mega cities of China, and has a population about 8 million. It lies on the southern China neighbouring Hong Kong (figure 3-1).

Figure 3-1 Shenzhen in China

Located between longitude 113°46′to 114°37′and latitude 22°27′ to 22°52′,Shenzhen is a linear city with a moderately hilly terrain. Its east-west span is over 49 km while its north-south span is only 7 km. The topography of the city is undulated, particularly in the southeast part. The northwest portion is relatively low lying with sea plains along the west coast. Its hilly topography in the southeast part shields it from most typhoon attacks in summer. Shenzhen lies in the sub-tropical maritime climatic zone with an average annual temperature of 22.4°C. The rainy season spans from May to September and the annual rain fall is 1933 cm.

28 years ago, due to its strategic location, Shenzhen named Baoan County then was chosen to be the first Special Economic Zone (SEZ) of China which was the experimenting ground of Reform and Open Door Policy as an initial action. With special status and preferential policy endowed by the central government, the small fishing village emerged at an unbelievable speed to a modern metropolis.

16 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

3.1.2. Administrative regionalism

3.1.2.1. Districts

Shenzhen is made up of six districts, within which four smaller ones formed the SEZ with an area of 410.07 km2. The other two districts Baoan and Longgang are much large with areas of 714.09 km2 and 844.58 km2 respectively.

Table 3-1 Districts and areas (km2)

Total area SEZ Luohu Futian Nanshan Yantian Non-SEZ Baoan Longgang

1968.74 410.07 79.56 75.49 180.33 74.69 1558.67 714.09 844.58

3.1.2.2. Streets

Street (Jiedao in Chinese), translated from Chinese, is not the synonym of road, but a lower level of administrative territory. There are totally 51 streets in Shenzhen, 30 of them in the SEZ, and 21 streets in Baoan and Longgang. Street office is the administration authority. In other Chinese cities, street office is the bottom level of political authority (Friedman 2005), thus its political power is very limited. But in Shenzhen, especially in the non-SEZ, because the street offices were mainly transformed from the former town (Zhen in Chinese) government, they had remained great political power in local administration.

3.1.2.3. Clusters

Strictly, cluster is not an official administrative regionalism. It is a zoning system that set by the Municipal Government that designated different development goals to certain streets according to different scenarios. The scenarios were designed based on the local physical environment, social and economic situation etc.

The Municipality is classified as 11 clusters. Within them, except Yantian Cluster and Nanshan Cluster are the same territory of those two districts, Centre Cluster is the combination of Futian and Luohu; other clusters are combinations of several streets. The names and development perspectives are listed in the table below.

Name Component Development Perspective Centre Cluster Futian/Luohu Commerce/Finance/Politics/Residence Nanshan Cluster Nanshan Port/Hi-tech industry/Residence Yantian Cluster Yantian Port/Tourism West Industry Cluster Songgang/Shajin Industry West Hi-Tech Cluster Guangming/Gongming/Shiyan Hi-tech Industry Baoan Centre Cluster Fuyong/Xixiang/Xinan Commerce/Industry/Residence Central Integrated Cluster Guanlan/Longhua/Bantian Industry/Logistics Industry Central Logistics Cluster Pinhu/Henggang/Buji Industry/Logistics industry Longgang Centre Cluster Longgang/Pindi Industry/Commerce/Residence East Industry Cluster Kenzi/Pinshan Industry East Ecology Cluster Kuichong/Dapeng/Nanao Ecology/Tourism

17 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 3-2 Clusters of Shenzhen (Source: SUPLAB)

3.1.3. Urban growth

At the very beginning when the SEZ was set, the city was planned by planners and experts with a long head. Even though the predicted urban land area and population aroused criticism every time for being too ambitious, time and time again, these ambitious goals were fulfilled very soon which led to a lag of planning to development (figure 3-3).

Both the population and urban land expanded beyond the growth limit set by the planners. As a result of the rapid development, Shenzhen becomes to be the most crowded city of China, the population density of Shenzhen SEZ is above 5000 people per km2, even though strict immigration limit have been implemented. Meanwhile, the urban land has expanded and encroached on more and more reserved land and natural land which led to an unsustainable development.

One of the reasons is the local government were not actually willing to restrict the expansion. In the fast developing phase, both the central government and the municipality were cheering for the economic growth and paid less attention to other indicators such as living quality, environment, etc. So, this unplanned land use conversions which contributed the economic growth were indulged, even though they were illegal sometime (Ng 2000).

From 2002 to 2005, the urban land had increased from 513 km2 to 704 km2; the average annual land increase was about 63 km2. According to the land use survey, till the end of 2005, the existing land that can be developed was 200 km2, means if the expansion speed would not ease, all the remained land will be run out in 5 years.

18 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

1990 Built up: 139 km2 1996 Built up: 342 km2

2000 Built up: 467 km2 2005 Built up: 703 km2 Figure 3-3 Urban Growth 1990 - 2005 (Source of built up 1990 1996 2000: SUPLAB)

100% 90% 80% 70% 60% Total land 50% 40% Urban land 30% 20% 10% 0% Urban land Planned Urban land 1996 Urban land 2005 for 2010

Figure 3-4 Growth of built up density 1996-2005 (Source: Report of land use survey 2005)

3.2. Urban planning and Urban growth pattern

Shenzhen is regarded by Chinese planning professionals as a city built according to plans. The series of master plans formed the fundamental pattern of Shenzhen’s urban growth. Reviewing the urban planning history of Shenzhen would give some clues in analyzing the unplanned land development of the city.

19 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

3.2.1. Review of urban planning

In 1982, Urban and Township Planning Academy of developed the Urban Construction Plan of Shenzhen (figure 3-5) which is the first edition of Master Plan of the city. In this plan, a “core- cluster linear” structure was designed for the city. From the west to the east, three clusters of , Luohu-Shangbu and Shatoujiao were planned to be developed. The population of Shenzhen in 2000 was predicted to be 0.8 million, which is beyond the number to define big city in China (city with the population over 0.5 million is defined as big city in China). And the urban construction area was planned to be 98 km2. The plan aroused serious criticism because the plan is too ambitious for such a new city.

Figure 3-5 Master Plan of Shenzhen in 1982 (source: Guangdong Urban-rural Planning and Design Institute) Core-fringe mode Not long after, in 1986, a new Master Plan (figure 3-6) with the predicted population of 1.1 million in 2000 was introduced. Shenzhen was planned to be a modernized megacity configured with seaport, airport, express road and other facilities. And the urban space of a linear-cluster pattern was enhanced in this plan. Five clusters were planned to be developed. They are eastern cluster, Luohu-Shangbu cluster, Futian cluster, Shahe cluster and cluster. From the west to the east, they were connected by express road to form a linear clustered structure. Moreover, in order to raise the probability of granting by the central government, planners increased the per capita standard to raise the overall infrastructure provision which made the configuration could actually accommodate 1.5 million people. The transportation was even more advanced beyond the normal standard, which was configured for a population of 2 million. Large green buffers were designed on sides of main roads, which guaranteed the road upgrading in the future. The Shenzhen Master Plan 1986, which has been regarded as a milestone in China’s urban planning history (SUPLAB 2001; Zhang 2006), guided Shenzhen’s development for years and shaped the city’s spatial structure. In 1990, the population of Shenzhen already increased over 2 million. And a decade later, the number rose to be 7 million.

20 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 3-6 Master Plan of Shenzhen in 1986 Planning-guiding-development mode (Source: China Academy of Urban Planning and Design)

Between 1986 and 2000, two other plans were published. “Shenzhen Development Strategy” developed by China Academy of Urban Planning and Design in 1989 and “1996 Shenzhen Master Plan” developed by Shenzhen Academy of Urban planning and Design. In Master Plan 1989, population was planned to be 4.3 million and urban construction land was planned to be 480 km2 in 2010.

Shenzhen Master Plan 1996 (figure 3-7) is the latest master plan of the city and it is still in effect. It was the first Master Plan enacted officially by the State Council of China. In this plan, the scope of urban planning is expanded from the SEZ to the entire Municipality. The unique landscape of the city was respected. The administration of the area outside the SEZ was enhanced in order to pursue an overall balance of social and economic resources. As the development space extended, the former linear clustered structure (figure 3-11) was replaced by a network clustered structure (figure 3-12). Three major development routes were extended from the urban cores in the SEZ to outside. 9 clusters and 6 sub-urban areas were formed according to the plan. As the natural landscape was well considered, the urban land and natural land were wrapped by each other.

21 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 3-7 Master Plan of Shenzhen 1996 (Source: Shenzhen Urban Planning and Design Institute) Developing-guiding-planning mode Less than thirty years, 3 editions of Master Plans have influenced the city by turns. Though their intervals were quite short, the population and land capacity were modified by large scale (table 3-2). The reason is that the city’s astonishing development speed required the planning authorities to improve the function of the growing city. Most significantly, the Municipality had to rely on revisals of master plan to enhance both the land and infrastructure provision.

Table 3-2 Three Master Plans of Shenzhen Population Land Capacity Version Spatial Pattern (Million) (km2) Multi-centre 1982 SEZ Plan 0.8(2000) 98(2000) structure Linear clustered 1986 SEZ Plan 1.1(2000) 122(2000) structure Network clustered 1996 Master Plan 4.3(2010) 480(2010) structure

3.2.2. Urban growth pattern

Shenzhen with only 28-year history, have experienced what other cities may experience in hundred years. And because of this, the city is the condensate of conflicts and problems that would emerge in the urban development process. This development process could be divided into three stages, the initial construction stage from 1980 to 1985, the restructuring stage from 1986 to mid-1990s and the re-engineering stage from mid-1990 till now (Ng 2003). In these stages, the urban growth pattern reflects some similar and different characteristics.

1) 1980-1985 Construction Phase

22 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

In 1979, when Shenzhen turned from a county to a city, its population is 314 thousand, the GDP is 196 million and the urban land is less than 3 km2. In 1980, the domain of 327.5 km2 at the border area between Shenzhen and Hong Kong was distinguished to be a Special Economic Zone. And this was the starting point of Shenzhen’s drastic development.

With the purpose to develop an export-oriented economy, the urban construction of Shenzhen was started from the port area of Shekou. With strategic location and good topography for constructing port facilities, Shekou was soon constructed to be an industrial zone with other functions such as residential, recreational, commercial, etc.

In order to attract investment from Hong Kong, Luohu which is on the border between Shenzhen and Hong Kong was chosen to be developed as the commercial centre. From 1980, a series of construction projects were held. The urban area expanded 12 km2 annually from 1982 to 1984, which is rarely happened in the urban development history.

At that time, the land market had not yet been introduced. Investors enjoyed very low land use fee and labour cost. Lacking of revenue form land leasing, the SEZ government has limited capability to invest on the infrastructure. Thus, they could only provide the infrastructure at a relatively small scale. This develop instrument led to a “point – axis – point “pattern (figure 3-8). And this pattern influenced greatly for the city’s further development (Zhang 2006).

Figure 3-8 Emergence from points

2) 1986 - mid-1990s Restructuring Phase From mid-1980s, Shenzhen have entered into a new era of development. Municipal Government devoted much capital and energy to improve the infrastructure of port facilities, road system, etc. The function status of the nodes that emergent in the first years was enhanced. Furthermore, enterprises were encouraged by the government to develop land in larger scale. As a result, Huaqiao Cheng, High- tech Industrial Zone, Nanyou Development Zone and many other industrial zones were developed rapidly benefiting from the new policy. These newly developed clusters were mainly distributed along the main transport route—Shennan Avenue, and were separated by green buffers. The “linear clustered pattern” which was introduced in the Master Plan 1986 was then realised. An organic spatial structure gradually formed in this phase (figure 3-9).

23 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 3-9 Point-Axis pattern With the development of the city, the clusters continued to expand respectively. Their distance became shorter. And two new transportation routes—Beihuan Road and Nanhuan Road paralleling with were built to enhance the transportation between these clusters. The linear pattern then became a development corridor, which was characterised by more intense development. In this phase, , the centre of Shenzhen developed to be a high density commercial centre. Lacking of land affected the confidence for future development, the city centre then trended to expand westward.

Figure 3-10 Linear Clustered pattern Not only Luohu, but the whole city met the bottleneck of development. Investors were willing to come but there were not adequate land provision. To rationalize development and to achieve proper planning, the rapidly industrializing county outside the SEZ were incorporated as districts into the Municipality in 1993. The city’s area was enlarged about 4 times, problems which aroused by increasing land cost and labour cost were eased. It was the rebirth of Shenzhen.

3) Mid-1990s – Now Re-engineering phase When the urban construction in the SEZ was upgrading, the development of the two outside districts was even more intense. Since the opening of land market, land leasing became the most popular method for the local government to accumulate capital. The competition between the local governments was decreasing the land leasing price, which led to a blind and unreasonable urban development in Baoan and Longgang. And this trend spread all the parts of Shenzhen through transport network.

In the SEZ, the traditional industries were moved out to give place for the commercial and financial facilities. The proportion of industrial land dropped rapidly, while land for commercial use, transportation use and public facilities increased. The functional structure of land use was upgraded. While accessibility was improved, the distance from the city centre would be less important

24 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

(Thomlinson 1969) and clusters along the transportation route developed rapidly. Finally, the “linear clustered pattern” was formed maturely (figure 3-11).

Figure 3-11 Mature Linear Clustered pattern

The city then expanded northward through transport route. Though people and goods were examined and controlled when entering the SEZ from the other two districts, cheaper land and labour resource attracted more and more investors to set their factories outside the SEZ. Tunnels and viaducts were built, letting the development break through the mountainous barrier to the hinterland of the two districts. Without strict regulation and immigration control, the urbanization process outside the SEZ was even more drastic. Large industrial parks were set. Workshops and high-density dormitories were built along the express road.

Figure 3-12 Network clustered pattern

3.3. Study area

In this research, most of the analysis is targeting on the whole city of Shenzhen, which is 1968.74 km2, the boundary of the study area was identified by the border of the Municipality in 2005 which was provided by the SUPLAB. With certain consideration, several analyses focuses on industrial clusters only, which excludes four districts of SEZ and three remote streets in Longgang. And the centre cluster which is the combination of Futian and Luohu was defined to be the study area when analysing the dependency of commercial land on road. The rationale and definition of those sub study areas will be discussed in the following chapter.

25 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

3.4. Conclusion

This chapter introduced the history and administrative regionalism of Shenzhen city. The series of Mater Plans were reviewed and the urban development pattern was discussed. Shenzhen city was planned comprehensively through three editions of Master Plan in less than three decades. The city’s development speed far exceeded the planners’ expect, however, the urban growth pattern and the spatial structure of the city had basically followed the conceptive plans.

26 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

4. Methodology and Data collection

Methodology used in this research will be described in this chapter, including three parts: the method and process of land use survey of Shenzhen which is the base and fundamental data source of this research; the data collection and processing; and the methods of a series of analysis on the unplanned land development.

4.1. Survey of land use in Shenzen

This research based on the land use survey of Shenzhen in 2005. Owing to the survey is not the focus of this research, its method and process will be described concisely.

4.1.1. Introduction

In 2005, the Shenzhen Planning and Land Administration Bureau devolved the task of a detailed land use survey of Shenzhen Municipality to the Urban Planning and Design Institute of Shenzhen. Then, due to possessing ample technical capability and experience, Research Centre of Digital City (RCDC) of Wuhan University was requested to provide technology support and implement the land use survey. Professor Zhan Qingming was in charge of the project which was completed by members of RCDC, including Staff, BSc students, MSc students and PhD students. The whole project lasted from May.2005 to Dec.2006.

4.1.2. Land use survey

The detailed land use survey covered the whole area 1968.74 km2 of Shenzhen Municipality. The whole task included data preparation, field observation, image interpretation, statistics analysis etc. Having got involved in all the stages of the process, the author not only had access to the data and final outputs but also obtained first hand information and experience when doing the land observation and related communication to local people and professionals.

4.1.3. The Classification of land use

The land use survey followed the “Urban Planning Standard and Principle of Shenzhen” (UPSPS). Published in 1997, the UPSPS introduces a land use classification system which is different from the national standard. All the urban planning and urban land administration activities in Shenzhen are required to follow the local standard. The main difference between the UPSPS and the national standard is that the land use for public facilities is distinguished from the commercial land use to be an independent sort. The purpose is to enhance the public services in order to enhance the living quality of the city. In this research, the UPSPS is regarded as the classification standard of land use. In table 4- 1, the primary land use types and their codes were listed. The detailed classification was attached as appendix of this thesis.

27 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Table 4-1 Land use classification of Shenzhen Source: Urban Planning Standard and Principle of Shenzhen (1997) Code Land use type C commercial D special land E water, agricultural, forest and reservation land G greenery GIC governmental and community M industrial R residential S internal transportation and square T external transportation U infrastructure W warehouse

4.2. Data collection

The most significant data in this research is the results of the land use survey 2005. The obtaining of this data had followed a scientific and systematic method in both field work and data processing. It was contributed by the long-term hard working of members in RCDC and planners in UPDIS. Authorized by Shenzhen Urban Planning and Land Administration Bureau, the results and some related data could be used in this research.

Beside the results of survey, there were several spatial and non-spatial data were used in this research. The most important of them will be described following.

9 Master Plans of Shenzhen from 1978 to 2005 Mater Plans of Shenzhen, which were granted by the central government, were the legal document guiding the development of the city in aspects of spatial structure, economic and social development, environment protection, energy utilization, etc. They are the basic principles which have to be respected by the sub-level plans and regulations. In the history of Shenzhen, there were three editions of Mater Plans published in 1982, 1986, and 1996 respectively and their features were already discussed in chapter 3. In this research, the Mater Plan 1996 will be considered significantly as it was the latest Master Plan of the city.

9 Recent land use plans The recent land use plans refers to the six District Plans which are the sub-level plans of Mater Plan 1996. They were detailed in land parcel level, and were the plans which guide the development in practice. They were prepared right after the Mater Plan, and were applied to guide the development in late-1990s with an expiring year of 2005. The six plans were implemented at almost same time, though they were granted at different times from 1998 to 2003 for certain reasons. Thus it is feasible to integrate the six plans as a whole land use plan of the Municipality.

9 Aerial photos and Spot5 Image

28 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Aerial photos were used as reference in doing the field survey and were used to identify the unclear boundaries of buildings or constructions, testify the results of field survey, interpret the land use type, etc. Rectified Spot5 Image (2005.10) was the base map of the land use map 2005 and it was used to interpret the built up areas, land parcels, roads, and water bodies, etc.

Figure 4-1 Spot 5 image Shenzhen 2005.10

9 Social and Economic data Social and economic data such as population, GDP, fixed assets investment, etc. were the important factors of analyzing the distribution patterns or efficiency of land use. The sources of these social and economic data were statistics yearbook, official reports and literatures, including: Shenzhen Statistics Yearbook 2005 (SSB 2006), Economic and Social Development Report of Shenzhen City 2005-2006 (SSB 2006), 25th Anniversary of Construction Achievement of Shenzhen Economic Special Zone (SSB 2005), etc..

9 Interviews Interview, in this research, is one of the main measures of understanding the motivations, mechanisms, and characteristics of the unplanned land development. Interviews were not only taken in Shenzhen, but also in Wuhan. The interviewers includes: urban planners, officials, property developers, entrepreneurs and farmers, etc. The detailed interviewer list is attached as appendix 2 of this thesis.

Table 4-2 Main data Data Year Format Source jpg and 1. Master Plan of Shenzhen 1996 SUPLAB doc 1998- 2. Recent Land use plans shapefile SUPLAB 2003 3. Aerial photos 2004.11 rectified Wuhan University 4. Spot5 Image 2005.10 rectified Wuhan University 5. Map of land use survey 2005 shapefile Wuhan University

29 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

2001- 6. Land use map 2001-2004 shapefile SUPLAB 2004 7. Maps of land use permit status shapefile SUPLAB 8. Map of road system 2005 shapefile SUPLAB 9. Boundary of the Municipality 2005 shapefile SUPLAB 10. Boundary of districts 2005 shapefile UPDIS 11. Boundary of functional clusters shapefile SUPLAB 12. Boundary of streets 2005 shapefile SUPLAB 13. Map of ecological zones 2005 shapefile SUPLAB 14. Map of construction restricted zones shapefile SUPLAB 15. Map of construction state 2005 shapefile Wuhan University Social and Economic statistics 2000- 16. (GDP, demography, investment, excel Yearbook and literatures 2005 etc.) 2006- 17. Interviews 2007

4.3. Data processing

4.3.1. Identification of unplanned land development

As defined in chapter 1, unplanned urban development is the land had been developed differing from the land use in plans. Thus, in this research the land use plans and the actual land use maps are two key documents for tracing the unplanned land development. Significantly, what need to be paid attention is usually, every 10 years, municipal governments revise their master plans. Thus, for instance, unplanned land development in 1994 would be transformed to be planned development when land use plan was revised in 1996. So, the time scopes are needed to be given clear indication when identifying the unplanned land development. In this research, it was enacted that the District Plans were the exclusive evidence that determined the land development was unplanned or not planed.

4.3.2. Monitoring unplanned land development

In this research, determine whether a land development is planned or unplanned refers only to whether its actual land use type in 2005 accorded to the land use plan, thus the comparison between the planned land use type and the actual land use type is the method to identify the unplanned land development.

In the environment of ArcMap 9.2, the process of identifying the unplanned developed land was simply two steps and they were described as following.

Firstly, all the land parcels of each land use type were picked up from the map of land use plan to be individual shapefile. And all the land parcels of each land use type were pickup from the map of actual land use map 2005. Then, we got a pair of land use maps of each land use type.

Secondly, takes industrial land for instance, we added the map of planned industrial land and the map of actual industrial land to the ArcMap layout. Then we use the erase command to erase the planned

30 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

industrial land from the actual industrial land, the remained land parcels then were the unplanned developed industrial land.

The map of unplanned developed land of each land use type could be produced using the same method. Then if we combine all the maps of each land use type, a map of unplanned land development of the city could be produced.

4.4. Analysis on unplanned land development

4.4.1. Land development

Before analysing the unplanned land development, the characteristics of the land development in Shenzhen will be analyzed. Though this part of analysis is not focusing on unplanned land development, it is rational and necessary because it would give knowledge about the land development features on the scope of the whole city.

The urban growth of Shenzhen in recent years will be identified. Their amounts will be compared with other major cities in China and their characteristics of distribution will be analyzed. Then, land development in each district will be looked at in order to find the land development features in each district.

Then, three social-economic indicators, GDP, population and fixed assets investment, will be used as factors in analyzing the urban land development. It aimed to test if there are correlations between the urban growth of Shenzhen and the economic development, population growth and the intensity of investment.

4.4.2. Land use structure

After analyzing the overall land development of Shenzhen, the land use structure of the city will be studied. The amount, proportion and development features of each land use type will be looked at. The land use structure will be compared with the National land use standard and Shenzhen land use standard. It will also be compared with the land use of other major cities in China and Western Countries.

4.4.3. Inconsistency between plan and reality

In this section, the research will analyze the relationship between plans and actual land. The inconsistency of urban planning and urban land development will be addressed through the comparison between the planned and actual built up area, planned and actual land use structure, etc.. Then, the device and implementation of the development control will be examined to find the reasons from the aspect of development control system.

4.4.4. Analysis on unplanned industrial land

The analysis on unplanned industrial land will be handled from three aspects, the spatial pattern of distribution, the impacts on natural environment and residence. Followed are the major analysis items.

31 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

¾ Spatial distribution Firstly, the distribution of unplanned industrial land in different districts will be analyzed, in order to find if there are locational reasons which lead to unplanned industrial land development.

¾ Development control Land use permit information will be added to the planned industrial land parcels and unplanned industrial land parcels to classify the industrial land as four types, planned industry with permit, planned industry without permit, unplanned industry with permit and unplanned industry without permit. Though the analysis on the amounts and distribution of these four types of land, the strength of urban development control in different locations and the relations between the development control and the development of industries will be find out.

¾ Dependency on road network Good accessibility is one of the most important factors of developing industry. As Shenzhen’s attracting advantage, strategic location together with good land and sea transportation infrastructures enhance the competition strength of the city. Moreover, short distance to highways means better accessibility to the gateway of intercity or international transportation network both on land and sea. Thus, the unplanned industrial land will be analyzed with respect to the distances to highways. The aim is to find the dependency of industries on transportation under a relatively free market mechanism.

The study area of this part of research was defined to be the 7 industrial clusters within the overall 11 clusters of the Municipality. 4 districts in the SEZ and 3 remote streets in Longgang were excluded from this part of research. The reason of excluding the SEZ is that for one thing, under the strict policy of restricting the industrial development in the SEZ, the industrial sites were very limited and scattered in distribution, for another, the industries in the SEZ were often occupying the land parcels for other purposes except producing goods. The detailed information will be discussed in the proceeding chapter.

+ =

Figure 4-2 Process of Identifying the industries in highways’ buffers

¾ Encroacher on ecological zones The industrial sites which encroached on the ecological zones will be identified. And within them the unplanned industries will be distinguished, then the amount of area will be computed and its proportion in the total encroacher will be calculated. The aim is to test whether the ecological zones were encroached mainly by unplanned industries. It is an examination of the land use plans with respect to protecting the environment.

32 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

¾ Impact on residence The impact of industries on residence will be measured by the distance between them. Short distance between industries to residence means high negative impact. In this research, the distance will be classified as four ranges, less than 500 meters, 500 to 1000 meters, 1000 to 1500 meters and more than 1500 meters. Accordingly, buffer zones of residence were firstly made, and then industries distributed in each zone were identified and their areas were calculated. More significantly, unplanned industries in each buffer zone were distinguished and their proportions were calculated in order to test whether the unplanned industries or the planned industries are more likely to encroach on the residence’s neighbourhood.

4.4.5. Analysis on unplanned residential land

¾ Residential land development The distribution pattern of residential land development in Shenzhen will be analyzed in order to find its dependency on location and population.

¾ Urban village When investigating the residential land development of Shenzhen, it is necessary to concern the urban villages. Urban village is a unique but typical phenomenon emerged in China’s urban transition process. It caused by the lag between physical development of rural residence and urban expansion. While those villages still physically rural villages, most of their residents work in cities and have an urban lifestyle (Deng and Huang 2004).

The distribution of urban villages in Shenzhen will be studied. The reasons and mechanism of the propagation of urban villages will be investigated through interviews and literatures.

¾ Development control Land use permit information will be used to examine the urban villages in SEZ and non-SEZ in order to find if there are different legal statuses of them.

4.4.6. Analysis on unplanned commercial land

¾ Macro allocation of commercial land The distribution of planned commercial land and actual commercial land in the six districts will be compared in order to test the efficiency of land use plans in the aspect of allocating the commercial activities. Unplanned commercial land development will be analyzed to find the characteristics of distribution of commercial land in market economy.

¾ Micro allocation of commercial land This analysis will emphasize on testing the dependency of commercial land on main roads. In the planned economy, the road system was regarded only with the transportation function. The function of road for business and other activities was neglected. Thus, the commercial facilities were located only on the side of main streets. There were very few commercial facilities on the sub-level roads or neighbourhood roads. Analyzing the distribution of unplanned commercial land and finding its

33 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

dependency on main road would give us more knowledge about the distribution characteristic of commerce in the market economy.

The study area of this analysis was design to be the central cluster, which is the combination of and Luohu district. The main reason of choosing those two districts are: firstly the road network in those districts are more stable, thus the result would be more truthful. Secondly, as the urban centre, the commercial activities in those districts are more prosperous, the commercial land development would be more dynamic, thus the development of the unplanned commercial land was expected to be more notable.

4.5. Conclusion

This chapter discussed the data collection method and described the main data. The methods and processes of a series of analyses were presented and explained, the rationales and objectives of them were discuss.

34 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

5. Monitoring and Analyzing Unplanned Land Development

In this chapter, unplanned land development in Shenzhen will be analyzed using quantitative methods. Within several land use types, industrial, residential and commercial land uses are chosen to be investigated in detail. Because these three types of land uses are the most dynamic land uses in the fast urbanization period. The chapter begins with a description of the general scale and pattern of urban development.

5.1. Development of the built up area

In December 2005, the total built up area of Shenzhen is 703.70 km2, which is 35.74% of the total area of the city. Of the developed area, 183.62 km2 is distributed in SEZ while 520.08 km2 is outside. Table 5-1 shows how the built up density of different districts varies. Futian, in which the city centre located, has relatively smaller area, but has the highest built up density 70.28%. Districts of Luohu, Nanshan and Baoan have similar built up density, above 41% and below 46%. Districts of Yantian and Longgang, which lie on the east of the city, are mainly mountainous area, thus have relatively small proportion of built up area.

Table 5-1 Districts and built up areas in 2005 in km2

Total Luohu Futian Nanshan Yantian Bao’an Longgang

Built up 703.70 32.97 53.05 82.63 14.97 299.19 220.89 Total land 1968.74 79.56 75.49 180.33 74.69 714.09 844.58 Proportion 35.7% 41.4% 70.3% 45.8% 20.0% 41.9% 26.2%

5.1.1. Spatial pattern

From the map (figure 5-1), it can be seen that the built up area are divided into several clusters by the mountains and ecological sites. The built up sites are very dense in the SEZ and they are spreading out along three intercity transport corridors to the north. In the west, Guangzhou - Shenzhen highway and Guangzhou - Shenzhen road passes through streets of Xinan, Xixiang, Fuyong, Shajin, etc. and lead to a linear development pattern in these streets. Similarly, in the middle, land development is expanding along Meiguan highway, which goes through streets of Longhua, Guanlan, Pinghu, etc. In the east, Shenzhen – Huizhou road, which passes streets of Buji, Henggang, and Longcheng etc. is leading the development expansion northward to the neighbouring city Dongguan and Huizhou. In Yantian and three eastern streets of Longgang, where the terrain is not suitable for intensive construction, the land development is constrained and linear along Shensha road, Shayan road and Shaba road.

35 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 5-1 Built up area of Shenzhen in 2005 Comparing the six districts, Futian as the central district, has the highest built up density 70%. The rate is almost twice the average density of Shenzhen which is 36%. Longgang and Yantian are mainly covered by mountains and most of the land was designated as ecological zones, thus the construction densities of these two districts are far less than the average rate of the city.

5.1.2. Growth of built up area

Fast urbanization and industrialization let the built up area of Shenzhen increased rapidly. In 1979, the built up land is 2.81 km2. From 1994 to 2000, the figure rose from 299.47 km2 to 467.29km2. In 2005 the figure reached 703.70 km2, increase by 134.98% of the area in 1994. From 1979 to 1988, 64% of the land development was in SEZ while from 1988 to 1994, 67% of the land development was outside SEZ. It represent that the land development hotspot was moving outside the SEZ in 1990s.

Figure 5-2 Built up land of Shenzhen 1979-2005 (Source: SUPLAB)

36 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 5-3 Urban expansion 2001 2003 2005 (Data source of built up 2001 and 2003: SUPLAB)

The rapid development, especially the development of industry, stimulates great demand for land. In this circumstance, the increase of built up area is inevitable. Shenzhen has already made tremendous achievements in reform and economic development. In recent years, it leads the development of Chinese cities in many aspects. From the statistics of data provided by the Ministry of Construction, from 2002 to 2004, the average annual growth rate (AAGR) of urban land increase of Beijing, Tianjin and Guangzhou are 10.02%, 4.99% and 10.06% respectively. In the same period, the rate of Shenzhen is 18.78%, far beyond the other large cities in China. The area of urban land in Shenzhen has already exceeded Tianjin and Guangzhou which are two of the most important cities that has developed for hundreds of years (Yusuf and Wu 1997).

Table 5-2 Growth of built up area in several major Chinese cities, 2001-2004 (km2) (Source: UPDIS) Year Shenzhen Beijing Tianjin Guangzhou 2001 467.77 - - - 2002 - 1043.00 453.99 553.50 2003 580.21 1238.70 487.47 607.97 2004 658.65 1254.40 500.13 670.48 AAGR 18.78% 10.02% 4.99% 10.06%

5.1.3. Spatial pattern of urban growth

From 2001 to 2005, the accumulated built up area had mainly distributed in Baoan and Longgang outside the SEZ. Built up growth in the SEZ was very limited (figure 5-4). There is an obvious trend that the built up area was expanded from the SEZ to outside. From 2001 to 2003, the newly developed

37 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

sites were mainly in Baoan and Longgang and Nanshan, very few sites were in Futian, Luohu and Yantian. From 2003 to 2004, the urban land had still increased drastically in Baoan and Longgang. Compared to previous years, the land development form 2004 to 2005 decreased and was distributed scattered in distribution.

Figure 5-4 Built up increase 2001-2005

Within the total area of 1968.74 km2 of the Municipality, the situation of social-economic development and the natural physical environment are quite different. Thus the expansion of built up in different districts represented different features.

Table 5-3 Built up increase (km2)

District Luohu Futian Nanshan Yantian Baoan Longgang Total

01-03 1.02 4.42 10.52 1.58 56.01 38.89 112.44

03-04 0.25 2.01 6.73 1.41 44.94 23.1 78.44

04-05 0.48 0.27 5.58 1.34 21.27 15.35 44.29

5.1.3.1. Baoan

From 2001 to 2003, the newly developed areas were mainly in four streets of Longhua, Gongmin, Shajin and Fuyong. And they were mostly industrial land. Based on the former built up areas, they were expanding out and distributed concentratively in clusters. From 2003 to 2004, the new built up areas were still mainly industrial land and located in Longhua and Fuyong streets. From 2004 to 2005,

38 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

the new built up areas were very scattered and limited. There were no development of large scale industrial zones then.

5.1.3.2. Longgang

From 2001 to 2003, the land development in Longgang had also focused on industrial land. The newly developed areas were distributed in streets of Pindi, Pinshan. From 2003 to 2004, the newly developed areas were still focusing on these streets, but the amount decreased. From 2004 to 2005, the new developments were scattered and in small scale.

5.1.3.3. Nanshan

From 2001 to 2003, the newly developed land were mainly college constructions and residence constructions, they were distributed around the Shenzhen branches of Beijing University, Tsinghua University etc. The new residential lands were distributed on the eastern side of Yueliangwan Street, the area between Houhai street and Houhaibing street. There were a few new industrial lands distributed near the north ring road. From 2003 to 2004, the newly developed areas were: storage lands near Mawan railway station, residential lands in Huaqiaocheng, and greenery in university areas. From 2004 to 2005, the new urban lands were very scattered.

5.1.3.4. Futian

From 2001 to 2003, the newly developed areas were industrial land in Futian tax-free industrial zone, residential land near International Exhibition Centre and transportation land near Futian coach station. From 2004 to 2005, the development had still focused on those areas, but the land growth decreased. From 2004 to 2005, the new urban land was very few and scattered.

5.1.3.5. Luohu

From 2001 to 2003, the amount of newly developed area was very small. The new urban lands were mostly residential land located near Xiaweiling area and in Liantang area. From 2003 to 2005, very few lands were developed and they were scattered.

5.1.3.6. Yantian

From 2001 to 2003, there was only one development focus in Yantian, which was a transportation- storage land near Yantian port. From 2003 to 2004, the new development had also focused on there. From 2004 to 2005, beside development near port area, greenery and tourism land were developed in Meisha beach area.

From the analyses of land developments in the six districts of Shenzhen, we can conclude that from 2001 to 2003, the land development was intense and concentrated in several positions. The newly developed land in Baoan and Longgang were mainly industrial lands. While the land use types of newly developed lands in SEZ were various including industrial, residential, storage, transportation land uses etc. From 2003 to 2004, the land developments had become more scattered and were distributed in more districts. The development in Baoan and Longgang were mainly industrial land. In Luohu and Yantian, very few lands in whatever land use were newly developed. From 2004 to 2005, the scattered distribution of land development had become very obvious, and the new developments

39 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

were in small scale. In conclusion, from 2001 to 2005, the land development of Shenzhen had been undergoing a process from intensive development to a relatively mild development. The main reason of the change is that the abundant land supply led to a lack of land resource, which forced the Municipality to take rigid control of land in recent years (SUPLAB 2006).

5.1.4. Land development and population growth

From figure 5-5, we can perceive a positive correlation between the growth of built up area and population. Form 2001 to 2004, the built up area rose a little faster than the population, which let to a decrease of average population density by 4%.

Growth of population and built up area 2001-2004

700 700 580 659 600 598 600 469 )

500 557 500 2 400 468 400 300 300 thousand) 200 200 (km Area Population (10 100 100 0 0 2001 2002 2003 2004 Year

Population (10 thousand) Built up area (km2)

Figure 5-5 Growth of population and built up area 2001-2004 (Source of population data: Shenzhen Statistics Bureau 2005)

5.1.5. Land development and GDP growth

Urban land of Shenzhen increased from 2.8 km2 in 1979 to 703.7 km2 in 2005. Total accumulated land is 700.9 km2, the average annual increase is 27 km2. This expansion speed is rarely seen in other Chinese or foreign cities. With the expansion of urban land, Shenzhen’s GDP grew from 196 million yuan in 1979 to 492.69 billion yuan in 2005. The average annual increase is 35.14%. “Shenzhen Speed” which represents the fast development of the city became a symbol of Shenzhen’s achievement. By 2005 for every 10 km2 urban land 5 billion yuan in GDP growth had been generated. The rapid economic growth and urban expansion have very close relations (figure 5-6).

40 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Growth of GDP and built up area 1980-2005

600 800 ) 500 700 2 600 400 500 300 400 200 300 200 100 GDP (billion yuan) (billion GDP 100 Built (km up area 0 0 1980 1984 1988 1992 1996 2000 2004 2005 Year

GDP Built up area

Figure 5-6 Growth of GDP and built up area (Source of GDP data: Shenzhen Statistics Bureau 2005; 2006)

Since 1980, a unit of 10 km2 built up area inside the SEZ could let a GDP growth of 9.5 billion yuan. There is also an obvious correlation between the economic growth and the land expansion outside the SEZ, however, the economic benefit bring about by the land consuming was far less than the SEZ. There was only an average additional increase of 1.2 billion yuan brought by land consumption of every 10 km2. The land use efficiency evaluated by GDP differed very much between the SEZ and non-SEZ. And the main reason is that the land in Baoan and Longgang are occupied mostly by manufacturing industries that consumes much land but not as profitable. On the other hand, it reflects that there is potential for upgrading land use outside the SEZ. To improve the land use efficiency in non-SEZ is the key to develop economic in Shenzhen.

Economic growth is one of the fundamental drivers of the urban expansion. From the perspective of resource economics, capital can be classified into two sorts: land resources and other resources such as money, human resources, technology, etc. In the rapid urban development process, urban land, as the foundation of all social and economic activities, was engaged to be in great demand. Thus the urban expansion has strong dependency on urban economic growth.

41 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Growth of per capita GDP and built up area 2001-2004

70000 70000 65865 60000 58021 57281 60000 51944 50000 46777 50000 40000 41699 40000 30000 30000 (yuan) 20000 20000 Per capita GDP 10000 10000 Built up area (ha) 0 0 2001 2002 2003 2004 Year

Capita GDP Built up area

Figure 5-7 Growth of per capita GDP and built up area 2001-2004 (Source of GDP and population data: Shenzhen Statistics Bureau 2005)

The per capita GDP is an important indicator of the level of economic development. To certain extent, the increase of per capita GDP reflects the development trend of a city. From figure 5-7, it can be perceived a correlation between the growth of per capita GDP and the expansion of built up area. The slopes of those two curves are almost equal and it reflects a parallel growth trend between those two indicators. From the year 2001 to 2003, the built up area of Shenzhen increased form 468 km2 to 580 km2, the AAGR is 24.04%. Meanwhile, the per capita GDP rose from 41698 yuan to 51943 yuan, the AAGR is 24.57%. From 2003 to 2004, the AAGR of built up area and per capita GDP were 13.52% and 10.27% respectively. The development of Shenzhen behaves a typical mode of urbanization in the initial and fast growing phase of industrialization, in which urban economic development relies on labour-intensive manufacture and capital-intensive industry very much, thus the more drastic the economic grows, the faster the urban land expands.

In summary, no matter inside or outside the SEZ, the correlation between the land use increase and the economic growth is strong. Fast urban expansion, to some extent, sustained the persistence of economic prosperity of the city.

5.1.6. Urban land development and fixed assets investment

Fixed assets mean land, factories, production equipments, office equipments and other non-mobile assets, most of which occupies land. Thus, investment on fixed assets will definitely lead to a demand of land parcels, especially in current Chinese cities where goes on a drastic industrialization. Figure 5- 8 shows the proportion of fixed assets investment by each district in 2004 and 2005. Within them, Futian, Nanshan, Baoan and Longgang have higher proportion around 20%. Following is Luohu with proportion of 8% and Yantian with 4.5%. The rank matches very well the development status of the six districts. Baoan and Longgang are the main ground of industrial development. They absorbed most of the domestic and foreign investment on industry. Nanshan is the base of many universities and institutes in Shenzhen. They located their branches there, and upon that, Hi-tech industrial parts

42 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

emergent and developed rapidly. Beside, as Shenzhen Port developed very fast in recent years (the No.4 container exchange port of the world), Shekou port which located in Nanshan attracted large proportion of investment. Futian is the new urban centre of Shenzhen. As new multi-function centre of commerce, politics, public activities, etc, Futian was invested massively by both the government and private sectors. Luohu is the old urban centre. The investment on it was mainly devoted to urban renewal and relatively few construction projects. Yantian is the recreation and tourism area, the investment on this district mostly occupied by residence constructions, Yantian port, and related industry constructions. Thus, investments in Luohu and Yantian are much less than the other four districts.

Proportion of fixed assets investment

30% 25% 20% 15% 10% 5% 0% Futian Luohu Nanshan Yantian Baoan Longgan 2004 24% 9% 21% 5% 21% 20% 2005 17% 7% 23% 4% 25% 24%

Figure 5-8 Occupation of fixed assets investment (Data source: Shenzhen Statistics Bureau 2005)

Figure 5-9 shows the proportions of urban expansion in the six districts from 2001 to 2005. There is a significant difference between the proportions of Baoan, Longgang, Nanshan, together with other three districts. The proportion of Futian, Luohu and Yantian are similar. Futian, Nanshan, Baoan and Longgang occupied similar fixed assets investment, but their land expansion present different features. Considering only the period form 2004 to 2005, Baoan had contributed 48% of the total expansion, while Longgang is 34.7%, Nanshan is 12.6%. It indicates that the same amount of fixed assets investments take different effective on land consuming in different districts of a city. The explanation would be three points. Firstly, according to the bid-rent theory (Alonso 1964; Hartshorn 1992), land investors expect different land output of land in different location. As the distance to city centre increases, the benefit of land decrease with different speed due to the land use types. There is a balance between land values and the transportation costs. Same amount of investment will seise larger land at more remote places. Therefore, it is explained that the land occupation of Nanshan is larger than Futian but smaller than Baoan and Longgang. Secondly, the different development perspectives of districts led to different functional structure of land. It is also can be explained by the bit-rent theory, more significantly is that in transitional Chinese city, the policies and regulations will increase the potential risk if the investment set on a ‘wrong’ place. Thus, the ‘Industrial Baoan’ consumed most of the land, and followed by the ‘Ecological Longgang’, the ‘Hi-tech Nanshan’ and CBD Futian. Thirdly, the different capacity of land resource determines a extensive or intensive land provision, which explained why Baoan and Longgang consumed same investment but different land.

43 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Proportions of urban expansion in each district

70% 60% Luohu 50% Futian 40% Nanshan 30% Yantian 20%

Proportion Baoan 10% Longgang 0% 2001-2003 2003-2004 2004-2005 Year

Figure 5-9 Occupation of urban expansion in six districts

5.2. Land use structure

Land use structure is the relation between land with different uses (Thinh, Arlt et al. 2002). It is also can be expressed as the spatial functional configuration of land. The land use structure of a city could help us understanding a city’s functional structure, and consequently which development phase it is in, etc. It also gives clues in finding the causes of some social, economic, and ecological problems.

Shenzhen SEZ, as the first Special Economic Zone of China, has been the pioneer of many economic policies and urban planning. The importance of urban planning and the provision of infrastructure has been much emphasized from its early stage of development. Thus, after less than three decade’s development, the urban land development had gone into a mature phase. And the land use structure is relatively more balanced.

Among the four districts of SEZ, Luohu and Futian, which experienced longer development period, have a relatively mature land use structure. Luohu is the region that been developed at the beginning of the city’s development. It is now a commercial and financial centre. The proportion of commercial land is 12.83%, which is the highest among the six districts. Futian is now in which the municipal government locates, the government and community land occupied 11.05% of the total area. Proportions of greenery in Luohu and Futian were 10.66% and 15.92% respectively, lager than other districts, which indicates better environment of them. Besides, the proportion of industrial land is low, accounting 4.9% in Luohu and 5.51% in Futian. Those two percentages dropped quickly in recent years, which indicate that the industries were moving out gradually, and the primary function of the SEZ had transformed from industries to commerce, residence, and services.

Baoan and Longgang were incorporated as districts into the Shenzhen Municipality in 1993. But as they were excluded from the SEZ, they also had been excluded from some preferable policies. This let to a profound gap between the SEZ and those two districts outside. Till now, the land development in Baoan and Longgang are still faulty and the land use structure is unhealthy comparing to the SEZ.

44 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

In Baoan and Longgang, proportion of industrial land reached 47.09% and 44.64% in 2005 respectively. Considering the decrease of industrial land in SEZ, it can be perceived that the manufacture centre of the city was shifted from SEZ to outside. Beside, the external and internal transportation, infrastructure, greenery, etc. are very weak in Baoan and Longgang.

The difference of the land uses structure between the SEZ and non-SEZ indicates that there could be a huge gap in terms of infrastructure provision, environment protection and development control of industries between the SEZ and non-SEZ (SUPLAB, 2003). This goes to the opposite direction of the original intention to incorporate those two districts, which is “to develop Shenzhen into a modern world city with a prosperous economy, a stable and safe society, an amiable environment and a rational spatial layout with comprehensive infrastructure provision” (Ng 2003, pp.434).

In figure 5-10, from 2003 to 2005, 55.2% of the newly developed area was industrial land (M), the expansion of industrial land was drastic. Residential land occupied 14.2%, which had the second growth amount. The proportion of other land uses in total newly developed area were: commercial and service land (C) took 5.4%; government and community land (GIC) took 4.1%; greenery (G) took 6.3%; infrastructure and public facilities (U) took 4.3%; internal and external transportation (S, T) took 5.7%; warehouse land (W) took 3.9% and special land (D) took 0.9%.

From the proportion of newly developed land from 2003 to 2005, we can conclude that industrial land was the main component, counted more than half of the total land growth. Residential land also increased very fast. And the amount of industrial and residential land occupied about 70% of the newly developed area of the city. The reason would be that the economic take-off of Shenzhen was mainly driven by investment (Meng and Shi 2003). Till now, the Municipal Government still shows a very strong interest in attracting investment on industries, especially Hi-tech industries. Favourable policies, strategic location and other positive factors made the city to be an excellent investment target (Chen and Wu 2002). And consequently, the increasing factories stimulated a great demand for residential area. Since the demand was mainly driven by manufacturing workers and they could be only capable to live in dormitories, flats, or more likely the private houses (Si Fang in Chinese) in urban villages. The newly developed residential land was limited compared to the industrial land.

Proportion of newly developed land 2003-2005 R, 14.2% C D S,T, 5.7% G M, 55.2% GIC U, 4.3% M W, 3.9% R S,T C, 5.4% U D, 0.9% G, 6.3% W GIC, 4.1%

Figure 5-10 Proportion of newly developed land 2003-2005

45 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

(Source of built up area 2003: UPDIS)

According to the ‘Urban Land Use Classification and Construction Standard’(1990), the proportion of residential land, industrial land, road/squares, and greenery should be controlled within 20-32%, 15- 25%, 8-15%, 8-15% respectively. And it was known as the National Standard of Land use Balance. In order to accommodate large amount of immigrants and improve the quality of environment, the ‘Urban Planning Standard and Principle of Shenzhen’ (Shenzhen Municipality Government 1997) raised the proportions of residential land and greenery to 25-30% and 10-15%.

In table 5-4, the proportions of residential land, roads and squares in Shenzhen accorded the standards. Industrial land was beyond the Shenzhen Standard’s upper limit by 11.2%. The greenery was less than the National Standard and far less than the Shenzhen Standard. Besides, according to the Shenzhen Standard, the proportions of storage land, special land were adequate; commercial land, government and community land, external transportation land, utility facility land were less than the requirements of Standard. It reflects though advanced land use standard were released in 1997, the urban development in recent year were not according to the standard to some extent. Development of greenery and utility facility were in the need of strengthening.

Table 5-4 Comparison of land use standards and actual proportions 2005 (%)

National Standard Shenzhen Standard Actual Rate (2005) Residential 20-32 25-30 26.2 Industrial 15-25 15-25 36.2 Roads and Squares 8-15 8-15 11.9 Greenery 8-15 10-15 7.2

The proportion of each land use type indicates that Shenzhen’s industrial function was strong while the service function was relatively weak. The land use structure of a city is related strongly to its economic development phase and regional social and economic status. According to the survey of 668 Chinese cities in 1998 (Department of Integrated Finance 1998), the average proportions of residential land, industrial land, utility facility, road/square, and greenery were 32.6%, 22.43%, 11.05%, 7.81%, and 8.3% respectively. In Western cities, industrial land occupies urban land less than 15% usually (Xiong and Luo 2000). Residential land usually takes 45% of urban land. Roads and squares also account for large proportion, for example, the proportions in Tokyo, Manhattan, Central London, and Hong Kong are 23.59%, 37.6%, 26.1%, 14.57% (Zhang and Du 2001).

From figure 5-11, the proportion of industrial land of Shenzhen is more than twice of the figure in Western Countries, and much larger than the average proportion in Chinese cities. In contrast, the proportion of residential land of Shenzhen bellows the figure of Western Countries and Chinese cities. The proportion of road and square land, exceeding the Chinese average level, but was less than the half of the proportion of Western Countries.

46 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Comparison of land use between Western cities, Chinese cities and Shenzhen

45%

36.20% 32.60% 26.20% 22.43% 25%

15.00% 11.92% 7.81%

Industry Residence Road and Square

Western Cities Chinese cities Shenzhen

Figure 5-11 Comparison between land use proportions in Western cities, Chinese cities and Shenzhen

Statistic reflects that from 1981 to 1998, the proportion of industrial land decreased in cities of China, from 27.71% dropped to 22.43%. The proportions of utility facilities, greenery, roads and squares rose year by year. The proportion of residential land maintained on the level of around 33% (Cao 2003). In Shenzhen, the industrial land and residential land grew very fast while the utility facilities, greenery, road and square increased much less rapid, which led to a drastic growth of the proportion of industrial and residential land and decrease of other land use.

5.3. Inconsistency of plan and reality

Unplanned land development is the land development not follows the plans. Because plans are made based on predictions and assumptions about future, as can be imagined, it is quite likely that the actual urban construction differs from plans. However, in cities of China, especially the new-rising big cities like Shenzhen; the urban construction has deviated from the plans to a great extent, which is awkward for planners and the local planning authorities.

5.3.1. Plan and reality

In Master Plan 1996 of Shenzhen, the population of the city in 2010 was planned to be 4.3 million. And the built up area of Shenzhen was planned to be control within 480 km2. Meanwhile, the “Ninth Five-Year Plan” of national economic and social development set the development goal in 2010 is 400 billion yuan in GDP. While in 2005, the GDP already reached 493 billion. The unexpected economic growth let to overruns in both population and built up area. In 2005, the population of Shenzhen reached 8.3 million. Though the population increased very fast, the growth of registered permanent population was slow. The number is 1.8 million, less than the planned figure of 2 million. It was the huge amount of floating population supported the high increase speed of total population. And that led to a decrease of the proportion of permanent population in total population.

47 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Till the end of 2005, the built up area reached 703.7 km2, more than 200 km2 larger than the planned built up area. The deviations between the planned and actual built up area in the SEZ were small while that in the non-SEZ were quite large. The actual built up area of Baoan overweigh the planned one by 94%. And the actual built up area of Longgang overweigh the planned one by 34%.

The deviations of population and built up area between the plan and actual situation were serious, which made it difficult for planning authorities to grant sub-level plans or allocation large infrastructures or facilities. More significantly, widespread deviations from the planned development undermine the public’s confidence in the local authority’s ability to control development and lead to further weakening of their perception of the role of Urban Plans.

The main reasons for these problems are: for the city, the labour-intensive manufacturing is still the main economic power source, especially in the non-SEZ. Those manufacturing industries attracted large amount of workers which were mostly floating population. Thus the total population rose fast. Secondly, the development concept of the municipality and the sub-level government is still attracting investment. Because the income from land leasing and land development is the majority of revenue, the authorities of villages or streets were raising a competition to attracting more and more industries or property developers. This development mode, which relies on consuming land resources while absorbing immigrants, led to a lack of not only land, but also water, greenery, open space, and other elements for leading a sustainable development.

Table 5-5 Comparison between plan and reality 1994-2005

Population Type Built up District

2 (10 thousand) Permanent Floating land (km ) SEZ Baoan Longgang

1994 335.5 94.0 241.5 299.0 101.0 102.0 96.0

Plan 2010 430.0 200,0 230.0 478.7 160.9 153.8 164.1

2005 827.7 181.9 645.8 703.7 184.62 298.9 219.4

Deviation 1:Plan 2010- +397.7 -18.1 +415.8 +225.0 +23.7 +145.1 +55.3 2005

Deviation 2:1994-2005 +492.2 +87.9 +404.3 +404.7 +83.6 +196.9 +123.4

As can be seen from table 5-7, land uses which overrun the plan are mostly industry and residence. The actual industrial land in 2005 is 257.8 km2, three time of the planned capacity. The overrun of industrial land was 173.7 km2, accounting for 77.5% of the total overrun. Industrial land was the mainstream of the land expansion of the city.

While the industrial land broke through the limit by large scale, other land uses: government and community, warehouse land, external transportation land, square and road, utility facility, greenery were below the planned requirements.

48 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Table 5-6 Land use areas in master plan and reality (km2, %) R C GIC M W T S U G D Total

area 122.9 16.4 54.1 84.1 19.5 42.5 74.5 13.8 45.3 5.4 478.7 Plan for 2010 % 26 3 11 18 4 9 16 3 9 1 100.0

Actual land use area 186.0 31.2 34.9 257.8 10.7 36.1 77.1 13.4 51.2 4.5 702.9

2005 % 26.5 4.4 5.0 36.7 1.5 5.1 11.0 1.9 7.3 0.6 100.0

area + + - + - - + - + - + Deviation 63.1 14.8 19.2 173.7 8.8 6.4 2.6 0.4 5.9 0.9 224.2 % + + - + - - - - - -

Planned and actual areas of each land use type

300

250 )

2 200

150

Area (km 100

50

0 C D G GIC M R S T U W

Land use type

Planned area (Master Plan 1996) Planned area Actual area in 2005

Figure 5-12 Planned and actual areas of each land use type

5.3.2. Development control

The Master Plan 1996, enlarged the planning area to be the whole area of the municipality, and classified the land as eight categories including agriculture protection land, water-source protection land, tourism and recreation land, suburban travel land, ecological sites, green buffer zones between clusters, potential construction land, and construction land. It was expected that it would be a good method to control the land development. Though it took positive effect in protecting the environment and guided the land use planning, the contribution of controlling the urban expansion was very limited in the recent decade’s practice. Agriculture protection land, green buffer zones and other non- construction land were encroached seriously. According to the Master Plan 1996, six of the eight categories were non-construction lands, and the total area of those lands was planned to be 1422 km2.

49 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Then, after a decade, the total area of the six categories was 974 km2, 31.5% of the non-construction land was encroach by constructions.

Table 5-7 Non-construction land and Construction land Deviation 1 Deviation 2 Type 94 Actual 2010 Plan 2005 Actual (1994 Actual-2005 (2010 Plan-2005 Actual) Actual)

Non-Construction 1487 1422 974 -513 -448 land Construction land 299 479 703 +404 +224

Among the whole built up area of Shenzhen, legal land use is only 45% while land development without permit is 10% higher (figure 5-13). Illegal industrial and illegal residential land use which distributed scattered over the city are two most prevalent types of illegal land development (figure 5- 14).

Permitted and unpermitted land development of Shenzhen in 2005

326.5 km2, Land development 45% with permit 395.8 km2, Land development 55% without permit

Figure 5-13 Permitted and unpermitted land development of Shenzhen in 2005

Figure 5-14 shows the built up area of Shenzhen without permit, those illegal land developments included all land use types and scattered all over the city. However, the situations between the SEZ and non-SEZ were quite different. The built up area without permit in non-SEZ was 349.02 km2, accounting for almost two-thirds of the total built up area of those districts. For the SEZ, the rate of illegal land use was 25%. The comparison of the land permit situation between the SEZ and non-SEZ shows the great difference between them (figure 5-15), which proves soundly that the land administration and governance of the SEZ was much better than outside.

50 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 5-14 Land development without permit (Source of land use permit information: SUPLAB)

Permitted and unpermitted land development in SEZ and non-SEZ in 2005

600 500 ) 2 400 Land development without permit 300 Land development 200 with permit Area (km 100 0 SEZ non-SEZ district

Figure 5-15 Permitted and unpermitted land development in SEZ and non-SEZ in 2005

5.4. Unplanned Industrial land deveopment

5.4.1. Overview

Shenzhen is in the development phase of rapid industrialization, thus industrial land increases very fast. Now industrial land already occupies large proportion of urban land. In 2005, the total industrial land is 257.8 km2, which is 36.7% of the built up area. Among them, 19.4 km2 is in SEZ and 235.3 km2 is

51 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

outside. Industrial land outside the SEZ takes 91.3% of the total industries. The proportions of industrial land between SEZ and non-SEZ differ also. The percentage for the SEZ is 10.6%, while for the non-SEZ is 45.2%. The percentage of industrial land, especially for the non-SEZ is too high and overrun the national and Shenzhen standard.

Table 5-8 Distribution of industrial land 2005 (km2) SEZ Non-SEZ Total Futian Luohu Nanshan Yantian Baoan Longgang Industrial land 1.69 3.60 14.30 0.52 108.99 79.23 208.33 Ind. land in eco zones 0.05 0.05 1.44 NA 10.14 5.58 17.26 Ind. land outside eco zones 1.64 3.55 12.86 0.52 98.85 73.65 191.07 Area (km2) 20.11 188.22 208.33 Occupation in built up (%) 11.7% 41.9% 33.6%

5.4.2. Development course

Along with the sustained rapid development of industry in Shenzhen, the growth of industrial land accelerated. In the past two decades, it developed from within the SEZ to outside. From 1984 to 1987, industries especially manufacture in the SEZ developed drastically. The annual rate of the industrial land increase is 37.41%. In 1990s, the beginning of the industrial restructuring slowed down the growth of industrial land. From 1994 to 2001, the average annual growth rate of industrial land in SEZ is only 0.93%, while the annual rate from 1987 to 1994 is 11.46%. But for the districts outside the SEZ, the industries were welcomed. From 1994 to 2001, the average annual rate of industrial land increase was 7.88%. From 2001 to 2003, the rate for the whole city rose to 26%, Industrial land in non-SEZ increased by 77 km2 while the growth in the SEZ was 5 km2. The two districts outside SEZ became the main soil for the industries.

Table 5-9 Growth of industrial land (km2) Non-SEZ Year Shenzhen SEZ Baoan Longgang 1984 NA 2.55 NA NA NA 1987 NA 6.61 NA NA NA 1994 82.38 14.12 68.26 37.66 30.60 2001 131.19 15.07 116.12 68.39 47.73 2003 208.33 20.11 188.22 108.99 79.23

(Source: Master Plan of Shenzhen SEZ 1981, Master Plan of Shenzhen SEZ 1986, Master Plan of Shenzhen 1996, Land use survey 2005.)

52 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

1984 Industries in SEZ 1994 Industries in Shenzhen

2000 Industries in Shenzhen 2003 Industries in Shenzhen

Figure 5-16 Development course of industrial land 1998-2003 (Source: SUPLAB)

5.4.3. Unplanned industrial land

Introduced in chapter 2, unplanned land development is omnipresent in Shenzhen city. Industrial land, as the most dynamic land use type in China’s coastal cities, takes great responsibility for the unplanned land development.

Figure 5-17 Planned Industrial land and unplanned industrial land

Among the six districts of Shenzhen, Futian, Luohu, Nanshan and Yantian, which form the SEZ, is the central urban area. They were expected to play the role of a centre of business, political and social

53 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

activities. Thus, the industry development was restricted in those districts. In the Master Plan, the capacity of industrial land in SEZ was limited with an intention to decrease the proportion of industrial land in the SEZ. Many then industrial sites were planned to be commercial or residential use. After years, we can see form the figure 5-18, though the capacity of planned industrial land is small; there is a relatively big amount of unplanned industrial land in SEZ. Comparing the proportion of unplanned industrial land between the SEZ and non-SEZ, no evidence shows if there is a correlation between the unplanned industries and their location.

Planned and unplanned industrial land in 2005

150.0 ) 2 100.0 Unplanned industrial land Planned 50.0 industrial land Area (km

0.0 SEZ Baoan Longgang District

Figure 5-18 Planned and unplanned industrial land in 2005

From the table, though the amount of industrial land in SEZ was quite small compared to the non-SEZ, the proportion of unplanned industrial land between the six districts were quite similar. Yantian, Luohu and Nanshan had higher percentage of unplanned industries than districts of Baoan and Longgang. Still, after interviewing some local planners, the reasons for the high proportion of unplanned industrial land between the SEZ and non-SEZ were different. For Baoan and Longgang, the considerable unplanned industries were ascribed to the great demand for the land of industrial sites and the intense competition between the local governments for attracting investment. Though the industrial land was planned very abundant, the unpredicted runover of industrial land was not quite astonishing because of the unpredicted development of manufacturing industries and the prosperity of the consuming market in China.

Table 5-10 Unplanned industries in different districts

District SEZ Luohu Futian Nanshan Yantian Non-SEZ Baoan Longgang

ULD_Ind (km2) 13.00 1.10 1.79 9.51 0.59 154.16 89.41 64.75

Tot_Ind (km2) 19.42 1.59 2.92 14.10 0.82 235.33 139.29 96.04

% 66.9% 69.2% 61.5% 67.5% 72.5% 65.5% 64.2% 67.4%

54 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

In the SEZ, for the same phenomenon of unplanned industrial land development, the reason would be different. It was not due to the severe development of industries which led to an overrun of plan. However, it was because that the planned capacity of industrial land was far less than the then actual industrial land. And those industries, which were ought to be moved, were remained by whatever measures.

The reasons of remaining the factories in the SEZ were many. One of which was the owners of the factories were not willing to give up the excellent location of transportation, communication and good living and working environment. Secondly, some factories remained a traditional style that the workshops, offices and dormitories were all facilitated in the industrial sites. By doing this, a great amount of cost for renting offices and dormitories were saved.

Interviews with the city planner and sociologist were also carried out, and their explanation and comments were reasonable and convincing. Firstly, the owners of the factories were not willing to leave because to give up land in urban centre means a great loss of land value. Though they can obtain extra money when moving their factories to the non-SEZ, the fast growing land price in the SEZ made it possible that holding the land and doing nothing is more profitable than producing electronic devices or garments. Secondly, land owners of the factories often changed the land use to some extent, for example, they rent the frontage buildings to open store, restaurant, car-decoration house, etc. Thirdly, they can mortgage the land in urban centre, and loan a huge number of money very easily. Then, the money could be invested in other business. In this case, a piece of land in urban centre is a perfect financing tool. In conclusion, land owners of the industries in SEZ had adequate reasons for refusing to move outward.

5.4.4. Land use permit

Discussed in Chapter 2, in transitional Chinese cities, documents such as SSRR, LUPP, Contract and NLUC could declare legal land use right. In the research, land parcels with any documents above are treated as permitted land use. Built up or under construction land parcels without those documents are recognised as land development without permit.

55 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 5-19 Industrial land of Shenzhen

Among all industrial land of Shenzhen, the developed area without permit is 148.6 km2 which overweighs the permitted land development by 16% (figure 5-20). It reflects an impuissant land governance system of the city. Actually, in transitional Chinese cities, illegal land development is an omnipresent problem, and the situation in Shenzhen is comparable to many other big cities.

Permitted and unpermitted industrial land

106.1 km2, 42% Industrial land with permit 148.6 km2, Industrial land 58% without permit

Figure 5-20 Land use permit of industrial land

When the components of industrial land in the six districts were displayed respectively (figure 5-21), there is an obvious difference between the districts in SEZ and outside. The proportion of industrial

56 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

land without permit in Baoan and Longgang overweigh the permitted industrial land. While in SEZ, land development without permit occupies less proportion of industrial land.

The reasons are two-folded, firstly, the industrial land in Baoan and Longgang were mostly transformed from former agriculture land which is possessed by the local farmers. Start from 1993, when the then Baoan County was incorporated into the Shenzhen Municipality and was names as Baoan and Longgang districts, the Municipal government started to expropriate land from local farmers. On one hand, the time-consuming expropriation process did not meet the demand of land when the investments rushed into the territory. Farmers then took response to get together their farm land, invested in basic infrastructure and rent the land or leased the land use right to enterprises. Due to lack of capital, these activities started from small piece of land, when investment costs were regained and considerable profits were obtained. The farmers increased the investments and could possible to lease the land use by larger scale or start to develop workshops. And the process loops. The organizations of those investment activities were improved fast, the increasing experience and concerns about their interests led to the emergence of rural joint-venture companies. Farmers transformed their lands to certain proportion of stocks according to the amount of land investment, and enjoyed the profits by their occupations of investments. Due to the political status and reputations, local government often plays a leader’s role in those activities. In summary, the unofficial trading of land, let to difficulties in obtaining the land use permit because of neglecting the necessary procedures or unconformity of land use plans. But it never affected the performance of those land trading. The industrial sites developed by local farmers were welcomed and the renting or leasing rates were much higher than most of the official development zones in other cities (Zhao 2001; Zhen 2005; Chen and Du 2006).

The other reason is both the local authorities and the Municipal Government acquiesce or even encourage the rural land use leasing. Firstly, the investments in industries did contribute greatly to the growth of revenue and provision for job opportunities. Not only the tax from land leasing, but also the persistent tax donation of the industries. Secondly, it is a common sense that the planning and land administration system does not fit the land development situation in the transitional economy (Qiu 2005). Though the adapted solutions were not accorded to laws and often caused confusion of management, they were proved feasible and efficient as far as attracting investment and stimulate economic development was concerned. Thirdly, it is an omnipresent fact that the remote districts especially the urban-rural fringe areas are more problematic. On one hand, the relatively low education level, weak legal sense of people and the more significantly the insecure forethought, led to the spread of land-leasing activities. On the other hand, the Municipality Government had neither capability nor energy to control the rural land-leasing and illegal constructions at large.

57 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Component of industrial land

100%

80%

60% Permit 40% No permit

20% 0%

n an ng an oa ti ohu i ga nt Ba Fu Lu a ong Y L Nanshan

Figure 5-21 Proportion of illegal industrial land

Land use permit and unplanned industries

18000 16000 14000 12000 10000 Ind_No Permit 8000 Ind_with Permit

Area (ha) Area 6000 4000 2000 0 ULD_Ind Plan_Ind

Figure 5-22 Land use permit and unplanned industries

According to the planning and land use permit status, industrial land could be classified as four types: unplanned with permit, unplanned without permit, planned with permit and planned without permit. Table 5-12 shows the areas of each type in six districts respectively. For the areas of districts varies form each other, the figures in the table is not comparable. In order to compare the combinations of different districts, the proportion of each land type was displayed in figure 5-23. From the ranking of land types in each district, we can perceive that in the four districts of SEZ, unplanned industrial land with permit has the highest percentage. In Baoan and Longgang, the unplanned industrial land without permit has the highest percentage. The planned industrial land with permit and planned industrial land without permit were following in the six districts with few exceptions.

58 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Table 5-11 Unplanned industries and land use permit status (ha) District ULD_Permit ULD_NoPermit Plan_Permit Plan_NoPermit Baoan 2638.00 6302.82 2175.64 2812.53 Futian 139.68 39.72 110.68 1.73 Longgang 2383.06 4092.15 2014.18 1114.84 Luohu 89.15 20.71 44.89 4.05 Nanshan 571.02 379.90 369.42 89.13 Yantian 54.66 4.63 22.30 0.18

Component of industrial land in 2005

100% 90% 80% 70% Plan_NoPermit 60% Plan_Permit 50% 40% ULD_NoPermit

Proportion 30% ULD_Permit 20% 10% 0%

n n g u n n n h a aoa utia sha B F Luo ngga Nan Yanti Lo District

Figure 5-23 Component of industrial land in 2005

In the SEZ, as discussed above, the relatively strict land governance led to a higher rate of legal land development of industries. Thus, though industries were not accorded with plans, they had to and did obtain the land use permit. Actually, the most industries in the SEZ were not newly developed. For the old industrial sites, their owners tried hard to keep their previous permit, in order to chase the potential value of the scarce land in urban centre. In Baoan and Longgang, the situation was quite different. Industrial sites were mostly developed by local collectivities of former farmers. And the Municipality Government had neither capacity nor motive to regulate those illegal land developments, because of at least three reasons.

Firstly, from the mid 1980s, the labour consuming industries were assembled in Shenzhen SEZ and then Baoan County, which drove intensively the rural industry and urbanization in Baoan. In 1993, Baoan County was brought into the planning territory of Shenzhen and be divided into Baoan district and Longgang district. The land in the two districts was in the charge by the Land Administration Bureau of the Municipality politically. Though their political power was weakened, the local authorities still controlled plenty of land resources and transferred the land use right illegally (Yu 2000).

59 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Secondly, the existing Land Administration Law and regulations could not accommodate the land development situation in transitional economy. For example, according to the laws, the state plays the only role of land provision in the first level land market. Only the provincial government (for Shenzhen, the Municipality Government has the right) has the right to expropriate and grant land. But in the circumstance that the investments were assembled at an abnormal speed, the actions taken by the local government would not doubt be more efficient and rapid. More important, in a situation in which the policy and institutions were not stable and legible, the farmers acted to protect only their own interests, where as the local organization or government would possibly be more reliable and consider also the broader interests of other societal groups.

Thirdly, from the municipality’s point of view, there is no reason to prevent the land development which stimulates economic growth and increases municipal revenue. So, though they could not approve the land use permit according to laws and regulations, they frequently turned a blind eye to such behaviour, leading to proliferation of illegal land development.

In summary, the differences of development phases, economic and social situation and quality of urban governance is the reason for the different characteristics of the land use planning and land use permit of industries in SEZ and non-SEZ.

5.4.5. Spatial location of unplanned industries

Transportation has a significant effect in the development of Shenzhen. The main reasons are: firstly, Shenzhen is the biggest gateway for importing and exporting goods. The development of the city, to some extent, takes the advantage of its status in global trading. Thus, one focus of urban construction is to improve the function of a port city. Secondly, manufacture, as the most important sector of the city, follows the export-oriented developing route. That requires the city to develop an efficient transport system. Good accessibility became the most important factor when locating an industrial site. Thirdly, among the industries, most of them are labour intensive industries came form Hong Kong, Taiwan, etc. Therefore, though their factories are in Shenzhen, the headquarters and markets are still in Hong Kong or foreign countries, which require high quality communication and transportation channels.

Spatial location with good accessibility could be one of the explanations for the unplanned industrial land development. For facilitating the research, we only consider the distance from the unplanned industries to the highways. The farther away form the highways, the poorer the location of the land. With the motive to chase land with good accessibility, investors would have more impulse to develop the land near highways. So, the hypothesis is that the amount of unplanned industrial land is dropping with the increase of the distance to highways. The relationship can be established by GIS function. Multiple buffer zones of the highways were created, and the industrial land falls in those buffers was classified and their areas were calculated. Four districts of the SEZ and two streets (Nanao and Dapeng) of Longgang were excluded in this part of analysis. Excluding SEZ is because most of the industries in SEZ were either small industries servicing local market or actually adapted the industrial use (discuss in 5-3-4), thus they had very less concern about the distance to highways. Excluding Nanao and Dapeng was by the reason of the fact that in those two remote streets in the eastern part of Longgang, some special industries located which occupied large area of land, for example the Dayawan nuclear power station which located in Dapeng in order to keep away from the habitat of people. Ignoring the

60 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

industries in SEZ and the special industries would lead the analysis more precisely in explaining the demand of industries for accessibility.

Figure 5-24 shows the spatial dependency of planned industrial land, actual industrial land in 2005 and unplanned industrial land in 2005 on the distances to highways respectively. It can be perceived that each of the three consumed large amount of land within a distance of 1 km from highways. And there were sharp drops of the land from 1 km to 2 km. From 2 km to 10 km, the area of land dropped with a coefficient relations with the distance to highways. The curve of actual industrial land had larger slide rate than the planned industrial land. It reflected that though the accessibility was considered in making the plan of locating the industries, the industries were even more impulsive to approach the highways than planner’s expectation. The sharp drop of area from 1 km to 2 km distance indicated that the industrial sites were very preferred to be located adjacent to highways or in a very close range.

Dependency of industrial land on the distance to highways

100

80 Planned )

2 industrial land 60 Actual industrial land 2005 40

Area (km Unplanned 20 industrial land

0 12345678910 Distance to highways (km)

Figure 5-24 Dependency of industrial land on the distance to highways

In the graph, the yellow curve represents the unplanned industrial land which has a similar negative coefficient relationship between the area of unplanned industrial land and the distance to highways. And the curve is much smoother than the curves of planned industries and actual industries. Unplanned land development broke the constraints of plans and policy, and represented the land development under a free market mechanism. The curve tells that there is a strong negative coefficient between the unplanned industries and the distance to highways. And there is not a preferable range of distance to allocate industrial sites.

5.4.6. Unplanned industries in ecological zones

In order to protect the environment of the city and lead a sustainable development, Shenzhen Urban Planning and Land Administration Bureau released the ‘Regulations of Shenzhen Basic Ecology Line Administration’ in 2005. In this act, ecology lines which identifying the ecological zones were set and the total area of ecological zones is designed to be 984.7 km2, accounting 50% of the area of the city.

61 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Except significant transportation or infrastructure projects, and tourism construction or establishment of public green space, any construction is forbidden in the ecology lines.

In order to understand the relationship between the industrial land development and the ecological zones, industrial sites located in ecological zones were identified. In figure 5-24, it can be perceived that there are serious encroachments of industrial land on ecological zones. The industrial sites were distributed scattered on the fringe of ecological zones and most of the sites are unplanned (figure 5-25). The encroachments were more serious in Baoan Longgang and Nanshan, and in Futian, Luohu and Yantian there are very few encroachments. Table 5-13 shows the areas of industrial land in ecological zones and the area of the ecological zones in SEZ, Baoan and Longgang respectively. Baoan had the highest proportion of encroachment rate of 5.8%, and followed by Longgang 2.1% and SEZ 1.2%. The rank and proportions are very well accorded with the proportions of the illegal development of industries in these districts (figure 5-21) with an exception that Longgang’s encroachment rate was relatively smaller. The reason would be for the remote areas of eastern Longgang, the low accessibility and mountainous terrain made it less attractive for developing industries.

Figure 5-25 Industrial land in ecological zones

Table 5-12 Industrial land and ecological zones

District SEZ Baoan Longgang

Industries in Eco zones (km2) 2.25 16.77 10.24

Eco zones (km2) 193.12 288.10 491.17

% 1.2% 5.8% 2.1%

62 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Components of indutrial land in ecology zones

100% 80% Planned Industry 60% 40% Unplanned Industry Proportion 20% 0% SEZ Baoan Longgang District

Figure 5-26 Components of industrial land in ecological zones

5.4.7. Impact on residence

Industrial sites not only occupy the land inside ecological zones, but also land for greenery, public facilities etc. which are important for living quality. More important, the short distance between factories to residential area let to direct impact such as air pollution, noise, transport conflicts, etc. As far as Shenzhen is concerned, the problem is significant. In 500 meter buffer zone of the first and second grade residence, industries occupies 139.4 km2, accounting 54% of total industrial land. And in 1000 meter buffer zone, the figure is 197.8 km2, which is about 76% of total industrial land. If the third and fourth grade residence were accounted, the number rises to 216.0 km2 and 313.6 km2.

In figure 5-27, it can be perceived that the industrial land with short distance to residence (less than 500 meters) spread all over the city. They distributed relatively more scattered in SEZ and concentrated as clusters in Baoan and Longgang. Due to all the industrial land in Shenzhen was located in the1500-meter range of residence, and the proportion of industrial land in the 1000-1500 buffer zone of residence is very small (2% of total industrial land), It can be conclude form the map that the industries in the SEZ have shorter distances to residence. Most of the industries in the SEZ located at a place less than 500 meters to residence.

63 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 5-27 Impact of industries to residence

Figure 5-28 shows the proportions of industrial land in the total available land of residence’s buffers. Both the planned and unplanned industrial land concentrated dramatically in the 500 meters buffer zone of residential land, accounting 25% of the buffer’s area. As the distance increase to 1000 meters and 1500 meters, proportions of both types of industrial land dropped sharply to 8% and 2%. The distribution of planned industrial land also followed the same trend. That indicates the impact of industries on residence had not been considered significantly when the land use plan was being prepared. Actually, in Chinese cities with the tradition of ‘Danwei’ system (discussed in 1.1.2.1), the mixed land use style of industries and residence are common. Though the system changed and the mixed use pattern was criticized, in transitional Chinese cities, especially the development zones and other fast developing regions, the distributions of industries still not been divided from residence. Though the ‘Danwei Big Yard’ does not exist in the newly developed area, there is still a trend of facilitating dormitories in the industrial sites and property developers intend to develop the land near industrial parks as residence. With the concern of reducing living costs and commuting time, workers who were engaged by the manufacturer and earned less salary, prefer to living around their factories or settling down in the dormitories provided by their employers. They paid very less attention to the problems of pollution or other negative factors affected their living quality. Not only in Shenzhen, but also in development zones of other cities such as Shanghai Minhang Economic and Technological Development Zone, Suzhou Hi-Tech Development Zone, and Wuhan East Lake Hi-Tech Development Zone in which the author worked as an assistant planner in the Planning Bureau, all-pervading conjunctions of industrial sites and large scale residential areas were observed.

64 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Proportions of industiral land in residence's buffers

30% 25%

20% Planned industrial land 15% Unplanned 10% industrial land Proportion 5% 0% 500 500-1000 1000-1500 Distance (m)

Figure 5-28 Proportions of Industrial land in residence’s buffers

Figure 5-29 shows the proportions of planned industrial land and unplanned industrial land in each buffer zone of residence. As can be seen, the proportion of unplanned industrial land in the total industrial land which falls into the buffer of residence declined as the distance to residence increase. It indicates that without the constraint of land use plans, industries were more likely to be distributed near residence. It testifies to some extent the statement that the integrated land use style of industries and residence prevailed in Shenzhen.

Proportions of planned and unplanned industrial land

100% 80%

60% Plan_Ind 40% ULD_Ind

Proportion 20% 0% 500 500-1000 1000-1500 Distance (m)

Figure 5-29 Industries in residence’s buffer

65 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

5.5. Unplanned residential land development

Shenzhen is an immigrant city. Peoples come from all parts of China, Hong Kong, Taiwan and other countries to the city for opportunities of job or business. As a manufacture centre, most of the immigrants are workers. Thus, after analysing the unplanned industrial land development, we could come to a spontaneous hypothesis that the unplanned development of residential land would be significantly prosperous.

5.5.1. Distribution pattern

Figure 5-30 shows the planned and unplanned residential land in Shenzhen. Unplanned residential land was not as prosperous as unplanned industrial land (see figure 5-17). They distributed scattered in the urban fringe area or emerged together with planned residential land. The amount of unplanned residential sites in non-SEZ is obviously larger than in SEZ.

Figure 5-30 Planned residential land and unplanned residential land

As residence’s growth depend on population growth, it is necessary to exam the characteristics of the population distribution in order to find if there is relations between their characteristics. From the comparison between the populations in the six districts and the related areas of residential land (figure 5-31), strong correlations can be found, especially in Nanshan, Yantian and Baoan. Obvious gaps were perceived in Futian, Luohu and Longgang. It would be explained that Futian and Luohu are urban centres, and people live in a more dense form. Longgang is the remote area with scattered habitat. People live a relatively low dense style.

Table 5-14 would give more information about the change of residential land. The figures of residential land, per capita residential land and the proportion of residential land in Baoan, Longgang and SEZ were listed. From 1994 to 2005, per capita residential land in Baoan decreased from 27 m2 to

66 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

21 m2. The occupation of residential land decreased from 29% to 23%. As for Longgang, the situation differs, per capita residential land increased a little while the occupation decreased significantly from 38% to 30%. For the SEZ, both per capita residential land and the proportion dropped drastically.

Relation of population and residential land in 2005

50.0% 40.0% 30.0% Population 20.0% Residential land

Proportion 10.0% 0.0%

n n n oa ng sha ga Futian Luohu n Ba Na Yantia Long District

Figure 5-31 Relation of population and residential land in 2005 (Source of population data: Shenzhen Statistics Bureau 2006)

Table 5-13 Residential land in Baoan Longgang and SEZ District Year 1994 2005 Area 2719 6960 Baoan Per capita area 27 21.09 Proportion 29 23 Area 2992 6634 Longgang Per capita area 35 36.86 Proportion 38 30 Area 2963 5045 SEZ Per capita area 20 16.02 Proportion 34 27 Area 8674 18639 Total Per capita area 26 22.46 Proportion 33 27

5.5.2. Prosperity of urban villages

Shenzhen is the only one city in China without a rural hinterland. After the incorporation of Baoan County, which was then the rural neighbour of Shenzhen SEZ, the whole territory of the Municipality was declared to be urban land. But the political order would not change the social structure, living style and the subsequent physical residential pattern immediately. The rural villages remained in the city and the rapid urbanization soon let them to be islands in the built up area. Inside the villages, buildings were followed the same style of construction and decoration, infrastructures were not qualified and there were lacking of open space, green land or public facilities, etc.. Urban villages,

67 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

which embarrassed the physical urbanization process and harmed the urban scenery, were considered to be the tumours on the body of Shenzhen.

In figure 5-32, residential land were plotted out and classified as normal residence and urban villages. Most of the urban villages distributed in Baoan and Longgang while relatively few located in the SEZ. In contrast, normal residence in Baoan and Longgang are much less than villages , and only distributed in sub city centres in those two districts. Urban villages occupied 69% of the total residential land in Shenzhen (figure 5-33).

Figure 5-32 Urban village and normal residence of Shenzhen in 2005

Component of unplanned residence

2457.4 ha, 31%

Normal residence Urban village

5587.3 ha, 69%

Figure 5-33 Component of unplanned residence

68 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Though urban villages occupied the majority of residential land, in SEZ or outside, the situations were quite different (see figure 5-34). Urban villages were accounting around 80% of the residential land in Baoan and Longgang, while the occupations were around 40% in Luohu, Nanshan, Yantian and 18% in Futian. It indicated that the urban villages were the main residential form in Baoan and Longgang. And the comparison reflected huge gap between the living situation in SEZ and non-SEZ.

However, the dwellers of those urban villages were not farmers actually. The majority of them were immigrants which was so-called floating population. Farmers, without the qualification of plant vegetables, found another way of making a living, “planting house”. Every household built extra private houses on their basic house ground (Zai Ji Di in Chinese) which was the legal land parcels for self-living private houses. And the extra room, floors were let to immigrant workers. Predicted conservatively, after letting for 5 years, the cost of building a house could be regained and after another 5 years, the profits would led the owners to be millionaires (Chen and Du 2006).

In order to obtain more space, on one hand, all the houses followed a same building style, a most economical and profitable style: a high but thin box with 6 to 10 floors, narrow steps, shared toilet and simple out decorations. On the other hand, the house occupied almost the whole basic house ground, which led to an extreme short distance between houses, and those houses were called by the local people as “shake-hand-buildings” because people from two buildings could shake their hands through the windows. The disadvantages were significant: less sunshine and aeration led the room dark and dankish, narrow path in the villages could not pass by the fire truck, and short distance between buildings made it possible and convenient for thefts. But even though, due to the competitive let price, private houses were welcomed by the immigrant and accommodated most of the immigrant workers in the rapid industrialization process.

As can be seen in table 5-15, low plot ratio of residential houses led to a relatively lower living density in Baoan and Longgang than in SEZ. Though the capita residential land in Baoan and Longgang was much bigger than SEZ, the living spaces were very limited.

Normal residence and urban village (ha)

100% 80% 60% 40% 20% 0% Baoan Longgang Futian Luohu Nanshan Yantian Urban village 2407.5 2664.7 72.7 188.1 196.7 54.8 Normal residence 813.5 532.2 375.7 276.8 364.5 94.3

Figure 5-34 Normal residence and urban village

69 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Table 5-14 Indicators of residence 2005 Plot ratio Living density Capita residential land Capita living area ( people/ha ) ( m2 ) ( m2 ) Baoan 1.07 476.8 21.1 22.5 Longgang 1.03 271.5 36.9 38.0 SEZ 2.21 625.9 16.0 35.2 Total 1.32 444.1 22.5 29.6 (Source: SUPLAB)

5.5.3. Residence and land permit

When land use permit information was added to the residential land parcels, the residence could be classified as four types, normal residence with permit, normal residence without permit, urban village with permit and urban village without permit. The areas of these four types of residential land were listed in table 5-16 below. It can be perceived that huge gaps between the areas of urban villages without permit in SEZ and in non-SEZ. The proportions of the four types of residence in each district would be more persuasive (figure 5-35). In those four types, urban village without permit and normal residence with permit took reversed proportions in SEZ and non-SEZ, urban village without permit was dominant in non-SEZ while normal residence with permit was dominant in SEZ.

The different structures of the residential land in SEZ and in non-SEZ reflected the different role that government played in those two regions. In SEZ, the residential land developments were under the control of the government and planning authorities. Urban villages were “natural villages” that inherited from the former rural villages. But outside the SEZ, urban villages were actually newly developed villages. They were developed on the land that issued by the government in the 1980s and early 1990. In order to control and regulate the land development activities, government provided land parcel for the farmers to build both their houses and TVEs with an intension to stimulated local economic growth. But, the intension of building new modern residence to upgrade the farmers’ living quality were not fulfil. New villages emerged and the farmers were not developing rural industries as the government expected but planting houses. The profitable new career of the farmers propagated and evolved to be a magnitude village development competition in the city (Chen and Du 2006). Due to the ignorance of planning and administration experience in the rapid urbanization process, governments or planning authorities had contributed to neither guiding the urban development nor improving the living quality of local people.

Table 5-15 Area of four types of residence (ha) Normal residence Urban village District Permit No Permit Permit No Permit Baoan 305.22 508.30 213.89 2193.60 Futian 277.65 98.04 33.93 38.77 Longgang 244.04 288.13 348.28 2316.44 Luohu 204.53 72.30 60.61 127.53 Nanshan 242.84 121.63 74.89 121.82 Yantian 82.16 12.15 53.31 1.53

70 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Four types of residence in 2005

100% 90% 80% 70% No Permit UV 60% Permit UV 50% 40% No Permit NR

Proportion 30% Permit NR 20% 10% 0%

n g u an ia an an ao ut gan uoh sh ti B F g L an an on N Y L District

Figure 5-35 Four types of residence in 2005

5.6. Unplanned commercial land development

In planned economy, the main function of a city was industrial production. Under a system which food and commodities were allocated by the governments or organizations, commercial function of the city was disregarded. After reform, under the market economy, commercial activities became a vital part of people’s life. Meanwhile, consuming is regarded as one of the ‘three horses which pull the coach of National economy’. In urban planning, increasing proportion of commercial land was designed. But due to lacking of experience and knowledge about the consuming behaviour and land economy, the actual commercial land development often deviated from the plans. It is a common scene in Chinese city that supermarkets were refitted from workshop and the ground floors of apartment buildings were often occupied by banks, clinics, and barber shops, etc. In this section, the plan for the commercial land was examined through comparison between plan and actual land use. And unplanned commercial land was analyzed to find the locational reasons of distribution under the market mechanism.

In figure 5-36, planned and unplanned commercial lands were plotted on the map of Shenzhen. It can be perceived that commercial land parcels were concentrated in Futian, Luohu, Nanshan and several sub-centres in Baoan and Longgang. Unplanned commercial land also distributed in those urban centres and sub-centres.

71 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Figure 5-36 Planned and unplanned commercial land

5.6.1. Macro allocation of commercial land

In the land use plan, commercial land was designed to be accounting higher than 6% in all six districts. Due to the Socialist ideology of allocating the resources averagely to some extent, the proportion of commercial land in those districts were almost the same, except Yantian was designated to have the proportion of commercial land about 12%. Because Yantian was the earliest place that developed by the government as a tourism district. The beach, beautiful scenery and most significantly a so-called ‘China-Britain Street’ in which Hong Kong people sale goods to tourists in Shenzhen attracted thousands of tourists from all over China to see what capitalism look like. The Municipality expected tourism in Yantian could stimulate commerce development, thus larger proportion of commercial land was designated.

Departing from plan, actual commercial lands were developed with preference in the six districts. Due to chasing high population density, good accessibility and infrastructure provisions (Leahy, McKee et al. 1970), commerce development were concentrated in the two central districts Futian and Luohu. In figure 5-37, proportions of commercial land in Futian and Luohu exceeded the plans to be about 9% and 12%. The proportion in Futian was lower than Luohu because as new urban centre, newly developed government and community land, public facility and greenery occupied large proportion of built up area. The space for commerce development was relatively less compared to Luohu. 55% of the total consumer goods were sold in Futian and Luohu (see figure 5-38), which reflects the prosperity of commerce development in those two districts. In Nanshan, due to the rapid development in recent years, commercial land almost reached the level stipulated in plan. And the commerce developments in other three districts were far less prosperous than planners’ expect. The actual commercial land was even less than half of the designated proportions. From figure 5-39, except Futian, Luohu and Pingdi, all other streets including sub commercial centres in Baoan and Longgang had not been able to develop adequate commercial land as was planned.

72 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Proportion of planned and actual commercial land

14% 12% 10% 8% Planned commerce 6% Actual commerce

Proportion 4% 2% 0% n hu an an i ang utia g F Luo Bao Yant Nanshan Long District

Figure 5-37 Proportion of planned and actual commercial land

Occupation of the total retail sales of consumer goods in 2005

12.0% 22.5%

Luohu 19.8% Futian Nanshan Yantian Baoan 1.4% Longgang

11.9% 32.4%

Figure 5-38 Occupation of the total retail sales of consumer goods in 2005 (Source: Shenzhen Statistics Bureau 2006, pp83)

73 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Areas of planned commercial land actual commercial land 2005

Yantian Xinan Xixiang Songgang Shiyan Shajing Pingshan Pingdi Pinghu Nanwan Nanshan Nanao Minzhi Luohu Longhua

Street Longgang Longcheng Kuichong Kengzi Henggang Guangming Guanlan Gongming Fuyong Futian Dapeng Dalang Buji Bantian

0 100 200 300 400 500 600 700 Area (ha)

Plan_Commerce Actual_Commerce

Figure 5-39 Planned commerce and actual commerce 2005

74 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

5.6.2. Micro allocation of commercial land

In the planned economy, the land market was not existed. The absence of land value led road and land were two isolated infrastructure provisions in the city. The function of road was mobility and transportation. And land was the ground for accommodating various activities. In the planned ideology, the wider road and less cross led to better road system. For the land parcels, it was better when the area is bigger and less traversing by the road. Thus, big block on the side of main streets was the best place to locate the commercial facilities. Frontages on the neighbourhood road were neglected. Actually, in planned economy, neighbourhoods were usually divided rather by walls than by roads. Till now, it is usually seen in Chinese cities that walls or high fences built along the roads or in between neighbourhoods.

The reform led land value reintroduced. Other functions of road, commerce, aroused people’s increasing concern. Shops, banks, restaurants, clinics, etc. moved out of the walls and located on the roads. Benefiting from the frontages, short distance to neighbourhoods, businesses on the neighbourhood roads were more preferable by the citizens and subsequently more profitable. In figure 5-40, three lines represent the proportion of planned commercial land, actual commercial land in 2005 and unplanned commercial land in certain buffer zones of main roads. It can be perceived the proportion of planned commercial land near main roads were very high, as the distance increased, the proportion dropped rapidly. It indicated that planners were more likely to designate the commercial land on the side of main roads but less concerning about the commercial function of the sub-level roads or neighbourhood roads. The curve of unplanned commercial land indicates that it was more likely than planners’ expect that business under a market mechanism would settle down on the neighbourhood roads. Due to the distribution of unplanned commercial land, the actual commercial land was less dependent on the main roads than the land use plan.

Moreover, in the land use survey, the land use of multi-functional buildings were classified regarding on the main function of the buildings, thus the land parcel of a residential building with stores on the ground floor was classified as residential land. On the streets of Shenzhen, those multi-functional buildings were very common, especially on the neighbourhood roads. Therefore, if those shared commercial lands were taken into consideration, the dependency of commerce on the main road would be much weaker.

This analysis gives a vivid example indicating “Even though the government controls and monopolizes the development market, recent government-built cities have often been less attractive and efficient than those built under market conditions.”(Kaiser, Godschalk et al. 1995, pp.9). And it is not only about accommodating market demand, but also guiding to produce good communities (Kaiser, Godschalk et al. 1995). Those newly emergent phenomena in transition ear would help planners to grasp new knowledge about how to build an efficient and harmonious city in market economy.

75 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Dependency of commercial land on main road

70% 60% 50% 40% 30%

Proportion 20% 10% 0% 50 100 150 200 250 300 350 400 450 500 Distance

Planned Commerce Actual Commerce ULD Commerce

Figure 5-40 Dependency of commercial land on main road

5.7. Summary

In this chapter, based on the land use survey of Shenzhen, the pattern of unplanned land development was analyzed with respect to important spatial features. Three most dynamic land use types: industrial land, residential land and commercial land were chosen to be taken distinguished consideration. The causes of those unplanned land developments were investigated through interviews and literatures. The influences of those unplanned land developments were discussed. GIS technology made this analysis possible and spatial analysis functions were used to handle the spatial data.

76 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

6. Conclusion and Recommendation

This chapter presents the main findings of this research and gives recommendations on improving the urban planning and land administration in transitional Chinese cities.

6.1. Conclusion

In this research, the impact of unplanned land development was not judged because it has both positive and negative effects on the city’s development. While underlying the inherent weakness of plan implementation, much unplanned development has driven economic growth and in some cases has led to an appropriate allocation of social and economic activities. This research examined empirically and quantitatively the ineffectiveness of master planning in Shenzhen, one of China’s major transitional cities. The more specific findings are following.

6.1.1. Land development and unplanned development 1. Urban land development in Shenzhen fulfilled the plans well in the aspect of development direction and pattern. But the intensity of actual urban expansion was far beyond the limits foreseen by the master plan. The growth of built up land had strong dependency on population growth, GDP growth and per capita GDP growth in Shenzhen. Fixed assets investment influenced the urban expansion, but in different districts, the effects were different. Same amount of fixed assets would drive more serious urban expansion in Baoan and Longgang than in the SEZ, which reflecting a more extensive urban development in non-SEZ and a relatively intensive and well managed urban development inside the SEZ area.

2. The Master Plan 1996 and the subsequent land use plans were not effective in both controlling the urban expansion and balancing the land use structure. Both the total population and the built up area exceed the plans significantly. The land use structure had been worsened due to the drastic growth of industrial land, an issue which almost certainly has contributed to environmental degradation in many parts of the city. Compared to the National standard and Shenzhen standard of land use structure, the proportion of industrial land was overrun while greenery was inadequate. In the longer term such developments and their associated environmental impacts must get more adequate attention.

3. Urban governance and land administration in Shenzhen was proved inefficient as 55% of the land development in Shenzhen occurred without land use permit. These illegal land developments are spread all over the city and include all land use types. Industrial land and residential land were however found to be the most prosperous illegal land development types. Illegal land developments were mainly distributed outside of the SEZ.

77 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

6.1.2. Industrial land development 1. Unplanned industrial land development was drastic in all six districts. The proportions of unplanned industries in the total industries in the six districts were similar, amounting to around 65%.

2. In Shenzhen, as much as 58% of the industrial land development was without a land use permit. And within those illegal industrial land developments, more than 70% were unplanned development. Though similar proportions of unplanned industrial land developments were perceived in the SEZ and non-SEZ, because of the stricter urban governance, the unplanned industries in the SEZ were more likely and necessary to obtain a land use permit to let the development legalized.

3. Unplanned industrial land showed a very clear spatial association with main traffic infrastructure. It indicates that land with short distance to highways is more preferable to industries. As such care should be taken in planning for road expansion projects given the evidence that they stimulate illegal and potentially undesirable industrial development.

4. There was considerable encroachment of industrial land on ecological zones, the encroachment rate of industrial land in SEZ, Baoan and Longgang were 1.2%, 5.8%, and 2.1% respectively. In all six districts, most of the industrial lands encroached in the ecological zones were unplanned development.

5. Unplanned industrial land development was also closely spatially associated with residential areas. With the increase of distance to residence, both the area of industrial land and the proportion of unplanned industrial land decreased.

6.1.3. Residential land development 1. In Shenzhen, the distribution of residential land was dependent on population distribution significantly.

2. In the unplanned residential land, 69% was in the form of urban villages. Urban villages occupied about 80% of the residential land in Baoan and Longgang but less than 40% in SEZ. Though per capita residential land in non-SEZ far exceeded the area in SEZ, due to the different building style between urban village and normal residence, per capita living space in SEZ and non-SEZ were similar. Such figures should however be treated with some action as there may well be large numbers of unregistered or floating population residing in some parts of the city.

3. In Baoan and Longgang, most of the residential land developments were urban villages without land use permit. In SEZ, the majority of residential land was normal residential land with permit. Urban villages in SEZ were fewer and they were more likely to obtain land use permits than the ones outside the SEZ.

78 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

6.1.4. Commercial land development 1. Unplanned commercial land was more likely to concentrate in the urban centre. Though with high population density, dense residences and industries, sub-centres in Baoan and Longgang were not able to attract adequate commercial land development stipulated in plans.

2. Not only distributed on sides of main streets, commercial land in Shenzhen also distributed on sides of sub-level streets and neighbourhood roads, which reflects the preferability of neighbourhood roads for commercial activities in the market economy.

6.2. Recommendation

Sustainable urban development requires efficient urban development planning. As affected by the drastic social and economy transition, planning in transitional Chinese cities has faced unprecedented challenges. The following specific recommendations are aimed to improve the urban planning and land administration in transitional Chinese cities.

6.2.1. Urban planning respecting the market mechanism

As China is now more or less a market economy, the spatial structure or urban expansion needs to be measured by the criterion of market efficiency in addition to other factors. Therefore, it requires that planners should firstly respect the ‘invisible hand’ of the market, take advantage of the market mechanism to allocate the natural and social resources. The planning of land use and configuration of infrastructures should follow economic and social development rules. In this case study, take commercial land as an example, planners followed the conventional planning method inherited in planned economy to allocate the commercial land. Commercial lands were planned to some extent distributed averagely in the city and concentrated on the main road. But the actual development tells that under the market mechanism, businesses have the trend to concentrate in the urban centre and emergent on the neighbourhood roads. Without rich knowledge about economics and other social science, plans designed with an old ideology will lead to inefficiency in urban development.

6.2.2. Coping with uncertainty in urban planning

Pre 1978, under the Soviet-style planned system, uncertainty was not acknowledged. After reform, Chinese cities had to develop in a climate of great uncertainty not previously experienced. On one hand, problems emerged in the rapid urbanization process challenged the planners and the planning system. On the other hand, the changing policies and circumstances made it hard to set down long- term and efficient solutions. In this research, the overspread unplanned industrial land reflects that the policies of tax advantage, cheap land and cheap labour attracted investment intensively. As China’s reform course is proceeding, new policies will definitely lead to new development circumstances. All these require the planners to adopt not only the “learn as you go” approach but the “learn before you go” approach, to grasp the trend of the state’s social and economic development, and produce plans that fit that trend.

79 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

6.2.3. Efficient planning control

Currently in Chinese cities, there are not efficient and effective instruments for monitoring the illegal land development. Prosecution and field observation are main methods to identify the illegal land use. As studied in this research, GIS and remote sensing technology provide an efficient and economical measure to monitor the unplanned or illegal land development. For example, the illegal land developments in the ecological zones were monitored easily and economically using satellite images and GIS. And it is feasible to update the information quite often for it is easy to obtain the latest images. This makes it possible for authorities to take quick action on the illegal constructions thus reduce the harm to the environment. Moreover, not only gives evidence of the illegal land use, it provides information about the distribution characteristics of those lands. The adoption of these techniques can lead to a more operative and efficient planning control system.

6.2.4. Legal status of urban planning

In this research, the prosperity of unplanned or illegal land development reflects that rules regulating the land uses had not been taken seriously by land users and land administrators. The main reason is the weak legal status of plans. In order to safeguard economic growth, the government can intervene in many stages of the planning process, which causes the laws and regulations are not enforced. While with the intention to correct the plans to suit the development circumstances, it also gives chances for the activities of corruption and under-table deal. And there is no supervision mechanism to regulate the government’s activities of changing the plans. Also, there is no compulsory sanction in laws to control the illegal land development and punish the participants of the illegal land development. In this research, unplanned and illegal industrial lands were developed near the residential neighbourhoods. The industrialization of Shenzhen, especially in Baoan and Longgang is at a sacrificed of people’s living quality. Weak legal status of urban planning leads to the connivance of unplanned or illegal development. To achieve better implementation of plans, it is in urgent deed to enhance the legal status of urban planning. The change of plans should follow a legal procedure and under the supervision of the public. Tangible sanction measures should be adopted in laws.

6.2.5. Public participation

In the planned economy, the state was the only investor of urban development, the development direction, scale and functional structure of a city was decided by the government. But in market economy, the multiple actors in the urban development endowed the task to planners of coordinating the development wills and interests of different stakeholders. More significantly, in the transitional economy, the gap between the rich and poor is enlarging. The welfare, security, job opportunity should be taken significant consideration. In this research, for the farmers who lost their agriculture land, letting houses were the means of making a living. And subsequently, it brought about the propagation of urban villages in Shenzhen. It reflects that neglect of vulnerable people will eventually lead to problems embracing the urban development. Participation of the vulnerable people in urban planning in the transition era is necessary to be taken special concern. Since reform, efficiency has been over emphasized in order to chase economic growth. As China’s new development goal is to build a “Harmonious Society”, equity should be regarded as a keystone in urban planning in order to lead a sustainable urban development.

80 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

The past 28 years have provided only a taste of what is to come. As China’s reform course is proceeding, the transitional ear will continue. It is necessary for Chinese cities to learn about the problems emerged and device instruments to cope with them. Finally, I would like to use a maxim of General Eisenhower to end this thesis. Though not concerning urban planning, it is appropriate to depict the urban planning circumstance in transition Chinese cities.

In preparing for battle I have always found that plans are useless, but planning is indispensable.

Dwight D. Eisenhower (1890-1969) (Cited by: Davidson 1996)

81 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

References

Alonso, W. (1964). Location and Land Use: Towards a Gerneral Theory of Land Rent. Cambridge, Mass., Harvard University Press

Bian, Y. and J. R. Logan (1996). "Market transition and the persistence of power: the changing stratification system in urban China." American Sociological Review 61: 739-758

Bruton, M. J., Y. Li, et al. (2005). "Shenzhen: coping with uncertainties in planning." Habitat International 29: 227-243

Cao, J. (2003). "Empirical Analysis on Land Use Efficiency in Chinese cities 1981-1998." Chinese Economist 4: 21-28.in Chinese

Chen, M. and F. Du (2006). Pioneer of China's Urbanization: Experience and Reform of Rural Urbanization in Shenzhen. Beijing, Economic Science Press.in Chinese

Chen, W. and X. Wu (2002). "Allocation and Planning of Hi-tech Industrial Zones, Case Study of Shenzhen." Urban Planning Review 26(4): 80-83.in Chinese

Construction Ministry of China (1986). The City Planning Act of China.in Chinese

Construction Ministry of China (1990). Urban Land Use Classification and Construction Standard.in Chinese

Davidson, F. (1996). "Planning for Performance: Requirements for Sustainable Development." Habitat International 20(3): 445-462

Deng, F. F. and Y. Huang (2004). "Uneven land reform and urban sprawl in China: the case of Beijing." Progress in Planning 61: 211-236

Department of Integrated Finance, Ministry of Construction, China. (1998). China Urban Construction Statistics Yearbook. Beijing, China Architecture and Building Press.in Chinese

Ding, C. (2003). "Land policy reform in China: assessment and prospects." Land Use Policy 20: 109- 120

Dowall, D. E. (1993). "ESTABLISHING URBAN LAND MARKETS IN THE PEOPLE'S REPUBLIC OF CHINA." Journal of the American Planning Association Spring

Friedman, J. (2005). China's Urban Transition. Minneapolis, University of Minnesota Press

Hao, S., K. Tang, et al. (2005). Development of Urban Planning System in China's Rapid Urbanization Process. Wuhan, HUST Press.in Chinese

Hartshorn, T. A. (1992). INTERPRETING THE CITY : An Urban Geography. New York, etc., John Wiley & Sons, Inc.

Kaiser, E. J., D. R. Godschalk, et al. (1995). Urban Land Use Planning. Chicago, University of Illinois Press

82 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Leaf, M. (1996). "Learning from Shenzhen." Cities 13(3): 195-197

Leahy, W. H., D. L. McKee, et al. (1970). URBAN ECONOMICS. New York, The Free Press

Lin, G. C. (2002). "The growth and structural change of Chinese cities: a contextual and geographic analysis." Cities 19(5): 299-316

Ma, L. (2004). "Economic reforms, urban spatial restructuring, and planning in China." Progress in Planning 61: 237-260

Meng, X. and X. Shi (2003). "The Spatial Distribution of FDI Manufactures In Shenzhen City." Urban Planning Review 27(8): 19-25.in Chinese

Ng, M. K. (2000). "Development Control in Post-Reform China: the Case of Liuhua Lake Park, Guangzhou." Cities 17(6): 409-418

Ng, M. K. (2003). "City profile: Shenzhen." Cities 20: 429-441

Ng, M. K. and W. S. Tang (2004). "Theorising urban planning in a transitional economy : the case of Shenzhen, People's Republic of China." Town Planning Review 75(2): 173-203

Ng, M. K. and F. Wu (1995). "A critique of the City Planning Act of the People's Republic of China: a western perspective." Third World Planning Review 17(3): 279-293

Qiu, B. (2005). Reform of Urban Planning in China's Urbanization Course. Shanghai, Tongji University Press.in Chinese

Shenzhen Municipality Government (1997). Urban Planning Standard and Principle of Shenzhen.in Chinese

Shenzhen Statistics Bureau (2005). 25th Anniversary of Construction Achievement of Shenzhen Economic Special Zone. Shenzhen, Shenzhen Statistics Bureau.in Chinese

Shenzhen Statistics Bureau (2006). Economic and Social Development Report of Shenzhen City 2005- 2006. Shenzhen, Shenzhen Statistics Bureau.in Chinese

Shenzhen Statistics Bureau (2006). Shenzhen Statistics Yearbook 2005. Shenzhen.in Chinese

Shenzhen Urban Planning and Land Administration Bureau (2001). Analysis and Recommendation of Shenzhen Master Plans. Shenzhen.

Shenzhen Urban Planning and Land Administration Bureau (2003). Shenzhen National Land Resource Plan 2020: Path of Harmonious Development between Human and Land. Shenzhen.

Shenzhen Urban Planning and Land Administration Bureau (2006). Shenzhen 2030 City Development Strategy. Shenzhen.

Shi, C. (2000). "Reflection on Land Use Problems of Chinese Cities." City Planning Review 24(2): 11-15.in Chinese

Sun, S. and D. Xi (2003). "Thinking on the Land Use Right and Urban Planning Development." Planning Studies 27(9): 12-16.in Chinese

83 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Thinh, N. X., G. Arlt, et al. (2002). "Evaluation of urban land-use structures with a view to sustainable development." Environmental Impact Assessment Review 22: 475-492

Thomlinson, R. (1969). Urban Structure. New York, Random House

Walcott, S. M. and C. W. Pannell (2006). "Metropolitan spatial dynamics: Shanghai." Habitat International 30: 199-211

Wang, F. (2000). "From Planning System to Planning Institution: review of Shenzhen urban planning history." City Planning Review 24(1): 28-33.in Chinese

Wang, J. J. and J. Xu (2002). "An unplanned commercial district in a fast-growing city: a case study of Shenzhen, China." Journal of Retailing and Consumer Services 9: 317-326

World Bank. (2006). "China Quick Facts." Retrieved Sep. 24th, 2006, from http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/CHINAE XTN/0,,contentMDK:20680895~menuPK:318976~pagePK:1497618~piPK:217854~theSitePK:31895 0,00.html

Wu, F. (2001). "China's recent urban development in the process of land and housing marketisation and economic globalisation." Habitat International 25: 273-289

Wu, F. (2002). Real Estate Development and the Transformation of Urban Space in China's Transitional Economy with Special Reference to Shanghai. The new Chinese city: Globalization and market reform. J. R. Logan. Oxford, Blackwell Publishers: 154-166.

Xiong, N. and Z. Luo (2000). "Land use efficiency and distribution of industrial land in Shanghai." Urban Planning Forum 2: 22-29.in Chinese

Yeh, A. G. and F. Wu (1996). "The new land development process and urban development in Chinese cities." International Journal of Urban and Regional Research 20(2): 330-353

Yeh, A. G. and F. Wu (1999). "The transformation of the urban planning system in China from a centrally-planned to transitional economy." Progress in Planning 51(3): 167-252

Yu, W. (2000). "Problem and Countermeasure of Land Development in Rural Urbanization, Case study of Baoan, Shenzhen." Rural Economy of China 10: 66-73.in Chinese

Yusuf, S. and W. Wu (1997). The Dynamics of Urban Growth in Three Chinese Cities. New York, Oxford University Press

Zhang, S. and D. Du (2001). "The Functional Transfering and Spatial Restructuring of the Central Urban Area in Shanghai." City Planning Review 25(12): 16-20.in Chinese

Zhang, T. (2000). "Land market forces and government's role in sprawl." Cities 17: 123-135

Zhang, T. (2002). "Challenges facing Chinese planners in transitional China." Journal of Planning Education and Research 22: 64-76

Zhang, Y. (2006). Self Organization of Urban Spatial Development and Urban Planning. Nanjing, Dongnan University Press.in Chinese

Zhao, Y. (2001). "Mechanism and Solution: Analysis on Idle Land in Baoan, Shenzhen." Urban Planning Review 25(2): 58-59.in Chinese

84 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Zhao, Y. (2004). "Rapid Development and Spatial Extension: A Case Study of Shenzhen." Urban Planning 28(6): 32-42.in Chinese

Zhen, H. (2005). The Positive Research on the Mode of Shenzhen Industrialization. Beijing, Economic Science Press.in Chinese

Zou, D. (1996). "The Open Door Policy and Urban Development in China." Habitat International 20(4): 525-529

85

MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Appendix 1: Shenzhen Standard Land Use Classification and Code ( 1997 )

Code Classification

R Residential R1 Good infrastructure and environment with low buildings<=3 floors R2 Good infrastructure and environment with low buildings >=3 floors R3 Medium infrastructure and conjunct with other R4 Temporary residence, poor infrastructure and environment, poor quality buildings R5 Natural village in urban area R6 Public facility in neighborhood R7 Road inside neighborhood R8 Greenery and open space in neighborhood C Commercial C1 commercial C2 Financial C3 Service C4 Hotel C5 Commercial office C6 Commercial sport facility C7 Commercial hospital C8 Commercial education C9 Commercial recreational facility G/IC Government and community G/IC1 Political office G/IC2 Cultural and recreational facility G/IC3 Sport facility G/IC4 Hospital G/IC5 Educational and science research G/IC6 Religious facility G/IC7 Social welfare G/IC8 Port facility

87 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Code Classification

M Industrial

M1 Non pollution industrial M2 Low pollution industrial M3 High pollution industrial M4 R&D facility, Hi-tech park M5 Rural industrial in urban W Warehouse W1 Warehouse for normal material W2 Warehouse for dangerous material W3 Open storage site T External transportation T1 Railway T2 Highway and 1,2,3 level road T3 Pipeline T4 Harbour T5 Airport S Internal transportation (road and square) S1 Road S2 Square S3 Parking space U Utility facility U1 Supplying facility U2 Traffic facility U3 Post and Telecommunication U4 Sanitation facility U5 Construction and maintain facility U6 Funeral facility U7 Other utility G Greenery G1 Public greenery G2 Production buffer greenery

88 MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Code Classification

D Special use D D1 Military

D2 Prison and security

D3 Free trade zone

D4 Protected agriculture land

D5 Scenic area D6 Environment protection zone E Water body and others E1 Water body E2 Water source protection zone E3 Agriculture land E4 Orchard E5 Forest E6 Grassland E7 Village E8 Bare land E9 Reserved land

89

MONITORING AND ANALYZING UNPLANNED LAND DEVELOPMENT OF TRANSITIONAL CHINESE CITY, CASE STUDY OF SHENZHEN

Appendix 2: Interviewer List

Name Function Organization Topic

Vanke Real Residential land development in Anonymous Manager Estate Shenzhen Zhonghang Anonymous Manager Land development in Shenzhen Group Urban planning system in Shenzhen Ms. Qin Yuan Planner UPDIS and illegal land development Urban planning system in Shenzhen Mr. Xu Yuan Planner UPDIS and illegal land development Improvement of urban planning Anonymous Official SUPLAB system Urban planning practice in Anonymous Official SUPLAB Shenzhen Land administration system and Mr. Duan Tao Official WUPLAB drawbacks

Anonymous Official WUPLAB Practice of urban village upgrading

Mr. Zhang Jin Planner UPDIW Urban planning and implementation

Anonymous Planner UPDIW Urban planning and implementation

Wuhan Urban planning in Shenzhen and Mr. Zhan Qingming Professor University urban village Wuhan Industry development in Shenzhen Ms. Cheng Fangfang MSc Student University SEZ Wuhan Ms. Zhou Shuo MSc Student Urban village in

Anonymous Official Street office Rural land development

Local land development and urban Anonymous Official Urban Village village Living quality and house renting Anonymous Villager Urban Village activity Tianhong Commerce development in Mr. Xie Ke Manager Supermarket Shenzhen SEZ Baoli Real Anonymous Manager Residential land development Estate

Anonymous Employer TVE in Baoan Rural industry development

Urban planning in transitional Mr. Yang Zhengshan Researcher CAS economy

Anonymous Investor Cyber Digital Land development in Shenzhen SEZ

91