The effect of green envelope components on green building value

Abstract

Purpose The purpose of this paper is to identify green envelope building components of residential buildings applicable under hot and humid climates and to analyze the effect of these components on building value. Design/methodology/approach The authors place an emphasis on green envelope components that influence building value and which are derived based on their integration into a building envelope structure that is applicable under hot and humid climates. This is performed through identification of green benefits of each green envelope component based on literature reviews and in relation to green criteria listed by the Malaysia Green Building Index (GBI). Consequently, a quantitative analysis has been conducted to determine the effect of these green envelope components on building value by means of a questionnaire distribution among 550 property valuation practitioners in Malaysia. However, in order to certify respondents’ credibility, the authors analyzed questionnaires answered by property valuation practitioners with experience in green valuation. Findings The findings show that there are ten green envelope components currently certified under GBI Malaysia and applicable for hot and humid climates. There are three green envelope components that can increase property values, specifically: solar photovoltaic, green living wall and green roof. However, eight of the green envelope components have no effect on building value. Research limitations/implications Due to the relative immaturity of the green building market in Malaysia, the authors were unable to analyze the actual percentage of increment on building value as conveyed by each green envelope component. Originality/value This paper aims to provide understanding of the effect of individual green envelope components on building value rather than merely the value of green buildings in general. It proves that green building envelope components do in fact contribute to an increase in green building values. As the green building market in Malaysia is still in its infancy, this study is significant in that it prepares the Malaysian green building market to attain a new level by providing valuation practitioners with awareness of green building values and new knowledge concerning the effect of individual green components on building values. Hence, it is anticipated that this study can assist property valuation practitioners in conducting valuations of green buildings in the future.

Homebuyers’ preferences concerning installed photovoltaic systems

“…Over the past decades in housing research, many studies have focused on households’ preferences and their willingness to pay (McFadden, 1974; Boehm, 1982; Gross, 1988; Louviere and Timmermans, 1990a, 1990b; Myrick Freeman, 1991; Oppewal, 1995; Molin et al , 1996; Earnhart, 2001; Greene and De Dios Ortúzar, 2002; Phaneuf et al , 2013; Van Ommeren and Graaf-de Zijl, 2013; Glumac et al , 2015; Chen, 2017). WTP for home energy improvement amenities is also well documented (Harrison and Rubinfeld, 1976; Dubin and McFadden, 1984; Adamowicz et al , 1994; Bennett and Blamey, 2001; Carlsson and Martinsson, 2001; Álvarez-Farizo and Hanley, 2002; Poortinga et al , 2003; Jakob, 2006; Tommerup and Svendsen, 2006; Jim and Chen, 2007; Farhar and Coburn, 2008; Alriksson and Öberg, 2008; Banfi et al , 2008; Chau et al , 2010; Eves and Kippes, 2010; Hoyos, 2010; Kuminoff et al , 2010; Kwak et al , 2010; Nair et al , 2010; Bristow et al , 2010; Branker et al , 2011; Dastrup et al , 2012; Eichholtz and Quigley, 2012; Zalejska-Jonsson et al , 2012; Zheng et al , 2012; Glumac et al , 2013, 2015; Högberg, 2013; Beck, Rose and Hensher, 2013; Daziano and Achtnicht, 2014; Vimpari and Junnila, 2014; Haffner and Boumeester, 2015; Ab. Azis et al , 2017).…”

A Feasibility Analysis of Energy Retrofit Initiatives Aimed at the Existing Property Assets Decarbonisation

“…Reductions in energy consumption translate into lower energy bills for residents and businesses, while the redevelopment of existing buildings and the construction of new buildings creates employment opportunities and stimulates innovation in the construction sector and in green technologies. Furthermore, low-energy and zero-emission buildings tend to have a higher market selling price, creating an incentive for investment in the real estate sector and implying a widespread increase in the overall value of existing building stock [18][19][20][21].…”

An Investigation of Green Roof Spatial Distribution and Incentive Policies Using Green Buildings as a Benchmark

“…This is because green roofs and green buildings both are based on buildings and belong to the scale of individual building. Green buildings are better implemented and promoted compared to green roofs [37]. In recent years, a large number of studies have been conducted to explore the differences in spatial distribution and key influencing factors of green buildings [38,39].…”