Abstract
Recently, the importance of green building certification in consideration of environmentally friendly factors is being emphasized more when constructing buildings in South Korea. The Green Standard for Energy and Environmental Design (G-SEED) is one of the strategies used by the Korean government to effectively reduce building environmental loads. However, due to the large investment needed to acquire green building certification, building owners, stakeholders, and designers often contemplate how to balance G-SEED certification benefits and the additional costs they involve. Therefore, the purpose of this study was to assess the benefits of G-SEED certification in terms of post-occupancy financial advantages through a comparative analysis of real estate prices of apartments in the Yeongnam area. All of the major factors affecting apartment real estate prices in South Korea were considered, and the real estate price difference between G-SEED certified and non-certified apartments was determined through a one-sample t-test. The results demonstrated that G-SEED certified apartment real estate prices were 9.52% higher than non-certified apartments. This study concluded that G-SEED certification–related investment is worth the additional cost as it increases the real estate value of a building.
Highlights
Due to the wide range of internal and external variables such as housing and regional characteristics, it would be inappropriate to carry out a comparative analysis on apartments located in different regions
A comparative analysis of real estate prices between Green Standard for Energy and Environmental Design (G-SEED) certified and non-certified apartments was conducted in this study
Prior to the comparative analysis, a normality test was conducted to ensure that the probability distribution of the population followed a normal distribution curve
Summary
Environmental issues related to buildings have become a great concern worldwide. In South Korea, the building sector account for 33% of energy consumption and 40% of natural resources consumption, respectively. This sector alone is responsible for 50% of all CO2 emissions and 20% to 50% of other wastes that have deleterious effects on the environment [1]. In 2013, the certification scope was expanded to all buildings larger than 3000 m2, and the certification program has been reestablished and renamed the Green Standard for Energy and Environmental Design (G-SEED) [2]. Estate price difference afterward, real estate prices for a total of 100 samples with G-SEED certified apartments and non-certified apartments were compared. A one-sample t-test was performed after confirming the normality of data
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