Decision-making of property owners and tenants in the face of compulsory purchase

Abstract

Government compulsory purchase poses severe threats to private properties in that the possible beneficial uses and exchange value of a property are adversely affected. In the face of compulsory purchase, property owners and tenants are expected to take actions to alleviate their possible loss. Two road-widening projects in highly developed urban areas in London, England and Kaohsiung County, Taiwan, are examined to uncover how property owners and tenants have reacted against the adversity brought on by the uncertainties of compulsory purchase. Empirical evidence shows that instead of passively accepting government-set cash compensation, a significant number of property owners and tenants have taken legal, market-oriented, and even political measures to reduce their possible loss, in addition to their appeal for a higher compensation.