Integrating technology and economic rationality: Reflection and optimization of Shenzhen's urban renewal capacity policy

Floor area is vital influencing factor of urban regeneration development gains. The article, based on Shenzhen experience analyzing the rule of floor area determination in urban regeneration, presents the evidence for the strong conflict between market-oriented and planning technology-oriented floor area determination, which brings the unequal development right among the subjects, the huge profit gap among different projects, the higher floor area ratio, and the subordinate functional type of urban construction, etc. The conflict has been proved not good for improving the quality and efficiency of floor area allocation. Therefore, this article analyzes the cooperative transformation mode of urban renewal,and uses an economic benefit analysis model based on four indicators: demolition and construction ratio, demolition and compensation ratio, saleable housing price unit price, and profit margin. It analyzes the mathematical relationship between various indicators in different types of renovation projects and examines the economic relationship between the government, market entities, and original rights holders in urban renewal. As a result of these investigations, suggestions, for instance, separating the market-oriented floor area and planning technology-oriented floor area, developing the demolition and construction ratio-based rule of floor area determination, enhancing the guidance of the demolition and compensation negotiation, are identified for improving the rule of floor area determination in urban regeneration at the end of this article.