TOD Expands Globally... Hong Kong and Japan Lead the Way [New Transportation Refugee Report] 19
The Future of Seoul - The Future of Transportation
Hong Kong, TOD Centered on the MTR
Shibuya's Major Renovation by 2027
"Urban Core" Draws Attention for Pedestrian Environment Improvements
Transit-Oriented Development (TOD) is being utilized internationally to transform densely populated and complex urban centers into more sustainable environments. This approach goes beyond simple station-area development centered on train and subway stations; it also encompasses concepts such as high-quality public transportation usage that does not rely on cars and convenient pedestrian mobility.
Hong Kong is a representative example of successful TOD implementation. To address the dilemma of a growing population and limited land area, Hong Kong restructured its spatial layout around the subway system. Stations like Hong Kong Station and Kowloon Station have evolved into complex centers that go far beyond simple transfer points, integrating shopping malls, hotels, offices, and parks in a concentrated area. Passengers can conveniently use public transportation while also enjoying a variety of services within walking distance.
The successful implementation of TOD in Hong Kong is largely attributable to the role of the Hong Kong Mass Transit Railway (MTR). MTR directly operates land and real estate development around stations and also sells air rights. The revenue generated from these activities is used for expanding and maintaining the rail network, thereby improving the quality of public transportation services. This stands in contrast to the deficit-driven structure of public transportation in South Korea.
Major Japanese train stations such as Tokyo Station and Shinjuku Station are also cited as successful cases of TOD. With investments from private railway companies, a variety of amenities and cultural facilities are integrated with the stations, and transfer routes are shortened to allow for shopping and dining within the station complex. Tokyo Station, for example, underwent a major redevelopment of its plaza in front of the station to expand pedestrian space. Previously, the area was congested with buses, taxis, and cars, but since 2017, it has been transformed into a plaza where citizens can relax and walk.
In particular, Shibuya Station in Japan is undergoing a "once-in-a-century major renovation" that is scheduled to be completed by 2027. This large-scale TOD project combines urban regeneration with enhanced transportation functions in the Shibuya area. Among the various facilities such as offices and commercial spaces, the most notable improvement is in mobility. Shibuya Station, which is served by nine rail lines and was previously complicated and inconvenient for transfers, now features an "urban core" with both vertical and horizontal pedestrian pathways. This pedestrian network, which extends from underground to above ground, helps disperse the flow of the numerous passengers passing through Shibuya Station.
Both Hong Kong and Japan have implemented policies to discourage car ownership. In Hong Kong, those purchasing a new car must pay a tax ranging from 40% to 115% of the car's price, depending on the vehicle's value. To park a car, individuals must either purchase their own parking space, similar to a real estate transaction, or pay to rent one. In Japan, the garage certificate system was introduced as early as 1962 to address traffic congestion and parking shortages. When purchasing a car, buyers must prove that they have secured a parking space. These policies encourage the use of public transportation.
There are also cities that have implemented "Green TOD," which adds a climate-friendly perspective to TOD. Hammarby Sj?stad in Stockholm, Sweden, transformed from a rapidly industrialized slum into a low-carbon city. Buildings utilizing eco-friendly energy were constructed along tram lines, and initiatives such as car sharing, expanded bicycle lanes, and water taxis have reduced residents' reliance on private vehicles.
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The Seoul Metropolitan Government is currently developing a master plan to restructure the area around Seoul Station, the heart of the city. The plan includes expanding Seoul Station Plaza, moving the bus transfer center and railway facilities underground, and improving pedestrian and transportation systems. The ground space created through underground development will be transformed in connection with surrounding development projects. The related project commissioned by the city is expected to be completed next year. Park Jonghyun, CEO of real estate R&D firm 2GOOD, stated, "Unlike Japan, in Korea the public sector holds the initiative in TOD. Given the limitations in public resources and capacity, it is important to utilize and encourage participation from the private sector to create new urban value."
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