A cost-and-benefit evaluation of housing rehabilitation

Abstract

Purpose - There have been very few cost-and-benefit evaluations of rehabilitation. This paper is a triangulation attempt to evaluate directly the cost-and-benefit of rehabilitation works without relying on price-proxy and econometric assumptions. Design/methodology/approach - Chau et al., in their paper, "Estimating the value enhancement effects of refurbishment" (Facilities, Vol. 21 No. 1/2, 2003) have produced an empirical test by regression on the elevation of property price-differential after rehabilitation. However, property price is merely a proxy on the improvements of building conditions, and its efficiency in reflecting building quality is subject to some institutional constraints. The estimation is also subject to the validity of econometric assumptions. This paper investigates the improvements directly under 18 assessment criteria of the quality of seven housing blocks in Hong Kong. Findings - The results show that rehabilitation brings benefits to owners, but that these only marginally outweigh the benefits of redevelopment. Research limitations/implications - The sample size is small, yet it opens up a new framework for future studies on building performance assessment of rehabilitation. Practical implications - The study serves as a benchmark for future assessment of rehabilitation works. Originality/value - The study represents an attempt to evaluate the costs and benefits of rehabilitation using a direct performance assessment approach. © Emerald Group Publishing Limited.link_to_subscribed_fulltex