Brownfield Redevelopment in China: GCREC 2012 Conference

The 4th Annual Conference of the Global Chinese Real Estate Congress (GCREC) was held on July 3–5, 2012 at the Grand Hyatt, Macau SAR, China. The event was hosted by the Faculty of Business and Administration of the university and served as a platform for brainstorming among scholars, practitioners, and government officials on the latest developments in the real estate field and the challenges facing the sector. Participants came from across the globe.

A central component of the event was the "Revisiting Brownfield Redevelopment" presentation, which focused on the reuse and reclamation of land that has real or perceived contamination. Brownfield sites are typically abandoned or underused industrial and commercial facilities available for re-use. Such sites are very prevalent in China and can be a major boon to the local economy.

Expansion or redevelopment of a brownfield facility may be complicated by environmental threats. This is a timely and relevant topic for China because of its limited land supply and its long history of traditional industry. Long-abandoned manufacturing or warehousing facilities, as well as currently operating plants and railroad yards, often show signs of pollution. There are many formerly industrial areas that have now become desirable real estate locations in an era of rapid urban growth.

For example, an abandoned gas station that has since been excavated could represent a valuable piece of property, yet it could also carry significant contamination from underground storage tanks that have been removed. Scenarios such as this can be a serious hindrance to the land development process. As discussed at the conference, population growth and an increased need for space are driving forces behind much of the interest in land re-use.

New regulations emphasizing environmental concerns — especially following the 2008 Beijing Olympics — have spurred demands that redevelopment projects incorporate due diligence in safeguarding public health and safety. Land re-use is possible when land is contaminated only by low to moderate concentrations of hazardous waste or pollution. More severely contaminated land falls outside the scope of brownfield classification. Done properly, brownfield redevelopment in China can relieve environmental pressure and resolve the glaring contradiction between urban land idleness and urban sprawl.

The conference emphasized the tremendous rate of urbanization in China in recent years. Long-awaited land reforms have spurred development and opened the door to rejuvenating the economy and revitalizing urban zones. Much of China's real estate resources were severely damaged due to socio-political circumstances and civil wars. After years of urban decline, China is now entering an era of urban renewal. Over the past three decades, the country has achieved enormous economic growth, accompanied by the emergence of a growing number of large and livable cities.

In the coming years, urbanization will continue to present both an opportunity and a challenge to the country's efforts to sustain rapid growth and maintain harmonious development. Achieving that balance will require thoughtful land management strategies that integrate environmental protection into the redevelopment process.

The urban challenges facing China include high-density populations, overcrowded housing, and deteriorating environmental quality. In addition, defining "clean" can be difficult — standards are strict and redevelopment is often expensive. The conference was held in part to address the growing need to disseminate information to land developers and potential buyers about legal standards and everyone's shared responsibility to protect human health and the environment.

Failure to achieve compliance in this area can have marked repercussions for potentially every part of the land and, by extension, every home in close proximity to it (Knowlton & Minier, 2001). When soil is toxic, it can lead to water toxicity and pose serious hazards, particularly for children. The magnitude of such problems warrants further discussion, and the conference proved a solid forum for addressing these risks and the responsibilities they entail.