The social value of vacant land : social return on investment of short-term community projects on vacant government sites in Hong Kong

Abstract

Vacant government sites (VGS) can serve meaningful purposes as public spaces, green spaces and community spaces. Many cities have policies to promote the short-term use of VGSs before long-term development takes place. For the purpose of cost-benefit assessment, there has been a growing interest in exploring whether these projects, often with short service life yet high construction costs, are cost-effective or not. However, only a handful of studies have assessed the social impact of VGS projects, none of which examined them in an Asian context. This study aims to extend this line of work to Hong Kong, estimating the social value of VGS projects over their short service life and comparing it with their initial costs, offering empirical evidence on whether this type of project is a cost-effective way for using idle land resources. Using the Social Return on Investment (SROI) approach, this study conducted social impact assessment on three VGS projects in Yuen Long District – a community farm, an ethnic minority centre, and a community centre. The assessment consists of both qualitative research (focus group interviews) and quantitative research (service user surveys; n = 112). The data were then applied to an SROI valuation model to estimate the social value created over a ten-year service life. Findings showed that a ten-year VGS project with an effective service model can achieve an SROI ratio of 1.8, meaning every $1 invested generates $1.8 in social value. Key drivers of social value include enhanced social support and improved wellbeing among long-term participants. The analysis also suggests that at least six years of tenancy is generally needed for a VGS project to achieve a positive return. This study is the first to assess VGS projects in an Asian context. It demonstrates that well-designed VGS projects with sufficient tenancy periods can be a cost-effective strategy for transforming idle land into valuable community assets.