6TH International Congress on Technology - Engineering - Kuala Lumpur3 - Malaysia (2018-07-19)

Impacts Of Green Certification Levels On Hong Kong Residential Property Prices

Green certification schemes have received great attention from both academia and industry around the world. This paper aims to evaluate the impact of different levels of green certification scheme i.e. HK BEAM (Hong Kong – Building Environmental Assessment Method) Plus’s Platinum, Gold, Silver and Bronze on property prices of residential buildings in Hong Kong. The paper used hedonic price model (HPM) to evaluate the influence of green certification rating levels on residential property prices in Hong Kong. The paper found that overall green certification HK-BEAM Plus generally has a positive impact on property prices by 6.61 percent, while there is also some positive effect of different certification levels on property prices. The buyers are willing to pay a premium price for green certified residential buildings compared to non-certified buildings. Furthermore, the cost and energy savings from sustainable green buildings can bring long-term benefits to the developers as well as building occupants. The study implies that the government and the private sector need to encourage public engagement so that people can have higher awareness on the positive impacts of green certified buildings.
Jayantha Wadu Mesthrige