Do green features increase housing value in Malaysia?

• Main Authors: Goh, Zhen Ting, Low, Sheau Ting, Choong, Weng Wai, Wee, Siaw Chui
• Format: Article
• Language: English
• Published: Emerald Publishing Limited 2022
• Subjects: TH Building construction
• Online Access: http://eprints.utm.my/id/eprint/101227/1/GohZhenTing2022_DoGreenFeaturesIncreaseHousingValue.pdf; http://eprints.utm.my/id/eprint/101227/; http://dx.doi.org/10.1108/IJHMA-09-2021-0101

Purpose – The purpose of this paper is to identify the perception of valuers towards the contribution of green features in residential property valuation. The concept of green housing was designed to reduce the negative impacts on the environment and humans. The cost of green housing is higher than the conventional building and is reflected in the selling price, which is further enhanced by the increasing demand for green buildings in the housing market. Such a scenario could be a challenge to the valuers when they carry out a valuation on housing with green features, as there is a lack of information to guide valuers. Design/methodology/approach – This study used a quantitative research method. A comprehensive review of the international green rating tools was carried out to ascertain the relative green features in residential buildings. There are 14 green features identified and grouped into four main categories. A total of 147 valid responses were collected by an online platform and face-to-face distribution among licensed valuers in Malaysia. Findings – The result confirmed that the 14 green features are contributing to the residential property valuation with a reasonable range of adjustment from 2.0% to 6.5%. Originality/value – The understanding of the range of adjustment for each green feature may provide a guide to the valuer in determining the range of adjustment based on green features associated with residential property in Malaysia. The findings contribute ideas and options to the future development of residential projects by taking into consideration the specific green features that potentially lead to environmental sustainability and building value.