Effects of Green Attributes on Residential Price in Taiwan
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Fong-Yao Chen, Jen-Hsu Liang, Michael Y. Mak
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International Real Estate Review
Taiwan is committed to reducing greenhouse gas emissions and established a green building certification system called the ecology, energy saving, waste reduction, and health (EEWH) system in 1999. However, only 0.44% of the private projects have obtained green building labels in 2017, and almost all of them have expired and not renewed. This study analyzes green attributes of market preferences by using a multi-regression. The results show that green indicators have a significant impact on green premium. That is, greenery, building envelope design, energy conserving air conditioning, construction waste reduction and indoor environment quality have discounted effects on the green premium. But some high-weighed indicators in EEWH are not favored by developers, and therefore have negative impacts on prices, such as building envelope design and energy conserving air conditioning. On the contrary, some low-weighed indicators have positive impacts on prices, such as energy conserving indoor lighting and water conservation, and therefore are already incorporated by developers based on buyers’ demand. It is suggested to modify the weighting of such indicators so that they are in line with buyers’ preferences, which will incentivize developers to incorporate green attributes in future projects that are more valued by buyers.
Green building, Sustainable property, Green attribute, Green premium, EEWH