Abstract
Green building is one of the sustainability dimensions in built environment. The issues of green building and its impact to the society have been increasingly discussed. Green certification is one of the components in measuring sustainable development and plays an important role as an assessment system to an individual building’s performance. The question arises whether the market understand and recognized the green certification. The objectives of this research are to discuss the issue pertaining to green value and the relationship between green certification and property price. The research emphasized on the understanding of property attributes focusing on green certification and the impact to the property price. Among the attributes identified are structural characteristics, location and neighborhood, and time attributes. Thus, this paper will discusses the review of literature on green development and the significance impact on property market in term of price and value. The green building development across the country could be classified as another sector in property markets that give significant impact to the real estate industry. As a result, a conceptual framework in assessing the impact of green certification is suggested to provide a significant input in developing the model of hedonic pricing for green building. This research may contribute to extend the body of knowledge in the area of green development and a suggested significant input will give much emphasize on the new valuation technique in valuing green building properties.
Highlights
Over the past decades, significant efforts have been made to promote sustainability in property development
From the previous research which addresses the impact of greenness to the value of property, the literature identified three arguments of on the need to evaluate the impact of green certification on property price: a) Sustainable buildings and property risks and financials are often misleading, resulted to a situation where individual property assets are mispriced, which lead to the investment opportunities for “enlightened” investors [17]
Green Building Index (GBI) was developed by PAM (The Association of Architects Malaysia) with six assessment criteria for certification inclusive of energy efficiency, indoor environment quality, sustainable site planning and management, material and resources, water efficiency and innovation (Table 1) and 4 categories of certification according to total point scoring (Table 2)
Summary
Lizawati Abdullah1,a, Thuraiya Mohd and Roshdi Sabu Department of Estate Management, Faculty of Architecture, Planning and Surveying, 32610 Universiti Teknologi MARA (Perak), Malaysia 2Faculty of Architecture, Planning and Surveying, 32610 Universiti Teknologi MARA (Perak), Malaysia
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