Impact of Green Elements on Property Value

    IMPACT OF GREEN ELEMENTS ON PROPERTY VALUE

 Shazmin Shareena Ab. Azis1*, Carmen Cantuarias-Vilessuzanne2, Shahabudin Abdullah3, Nur Amira Aina Zulkifli4, Nur Hannani Ab Rahman5

Real Estate, Faculty of Built Environment & Surveying

Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia

ABSTRACT

Green valuation is one type of valuation methods used to estimate the value of property by taking consideration the effect of the green features. Previous studies agreed that green features should be considered in valuation due to its features have added value to the building. However, many researchers have shown that the notable obstacle in implementing green buildings is the cost of implementation even though it does increase the market value of the building. Therefore, it is important to determine green features that has positive effect on property value and the implementation cost related to the green features. To date, no research has comprehensively compared between green attributes that increase property value and the implementation cost. Henceforth, this research aims to compare green attributes that influence in increasing property value and the implementation cost to serve as a guide for the building industry in making decisions for green building development. Based on the five hedonic model performed, it resulted that green roof, green wall, solar photovoltaics, double skin façade glazing, and green shade coverage are recommended to be implemented on buildings, as it increases property value. However, the lowest implementation cost is the green shade coverage implementation as it provides lowest cost compared to other green component at RM370/sqm with high property value increment at 39%. Therefore, it is suggested to implement green shade coverage on property to harvest both benefits. Overall, this study is significant to serve as a guide for the building industry in making decisions for green building development and eventually support in achieving the agenda of national sustainable development goals.

Keywords: Property valuation, green valuation, green elements, green implementation cost.