Avoiding uncompleted building projects : insights from Hong Kong's successful approach

Abstract

This dissertation investigates the persistent issue of uncompleted building projects across the globe, with Hong Kong identified as a notable exception due to its successful avoidance strategies. The study aims to understand the causes and effects of project incompletion and to assess the global applicability of Hong Kong’s experiences against such challenges. Adopting a qualitative approach through desk research, case studies, and interviews, the research investigates the economic, social, and psychological impacts of incompletion, drawing on the cases from China, Spain, Malaysia, and Iraq. It reveals that financial mismanagement, regulatory challenges, and external disruptions are prevalent factors contributing to incompletion in these regions. In contrast, Hong Kong’s regulatory framework, characterised by the consent scheme, specifically demonstrates a successful model in preventing project incompletion. Land sale strategies, market cooling measures and protection for buyers under regulatory framework are found to have some contribution. The relatively low debt ratio among developers and the strong real estate market in Hong Kong emerged as vital components of success. The corruption-free environment, advanced construction technologies, and standardised contracts also contributed to the success of Hong Kong. These factors are corroborated by the interviewees’ professional opinions. The findings suggest that Hong Kong’s strategies have the potential to be adopted globally. Generally, the consent scheme, land sale strategies, and protection for buyers are recommended for global adoption, except for the uncertain market cooling measures. Developers are encouraged to maintain a low debt ratio, which may be achieved through the deterrent effects of the regulations. A corruption-free environment, advanced construction technologies, and standardised contracts are recommended to be established. Even though the strong market may not be replicable, attempts could be made through related policies or by the adoption of other strategies. This research contributes to a deeper understanding of mitigating the risks of incomplete real estate projects, serving as a valuable reference in the other part of the world. While the strategies employed in Hong Kong influence a broad range of incompletion issues, addressing specific cases necessitates further study for tailored solutions.