Jin-Gyu Park, Jun-Hyung Kim, Sang-Young Lee and In-Hyok Im (2017-12), "Real estate appraisal of energy-efficient housing: application of cost approach and DCF analysis," Appraisal Studies, 16(3): 77-105.
Abstract
To cope with climate change and reduce greenhouse gas emissions, the Korean government has reinforced mandatory standards for “zero–energy housing” slated to start construction in 2025. In line with this move, the real estate appraisal industry has also reset field standards to reflect higher building values through ecofriendly facilities, such as those that reduce CO2 emissions, use new and/or renewable energy sources, and are highly energy efficient. This study built a basic database for the appraisal of energy-efficient housing based on the latter’s design specifications set by the Ministry of Land, Infrastructure and Transport, and conducted energy simulations. This research also utilized the appraisal method of calculating higher value by comparing regular and zero-energy housing using the cost approach and DCF analysis. The resulting values were KRW 0.84 billion and KRW 0.25~0.33 billion, respectively.
Keywords
Zero-Energy House, Energy-Efficient Housing, Energy Performance, Real Estate Appraisal, DCF Analysis, Cost Approach