A Conceptual Framework of Green Certification Impact On Property Price

Abstract

Green building is one of the sustainability dimensions in built environment. The issues of green building and its impact to the society have been increasingly discussed. Green certification is one of the components in measuring sustainable development and plays an important role as an assessment system to an individual building’s performance. The question arises whether the market understand and recognized the green certification. The objectives of this research are to discuss the issue pertaining to green value and the relationship between green certification and property price. The research emphasized on the understanding of property attributes focusing on green certification and the impact to the property price. Among the attributes identified are structural characteristics, location and neighborhood, and time attributes. Thus, this paper will discusses the review of literature on green development and the significance impact on property market in term of price and value. The green building development across the country could be classified as another sector in property markets that give significant impact to the real estate industry. As a result, a conceptual framework in assessing the impact of green certification is suggested to provide a significant input in developing the model of hedonic pricing for green building. This research may contribute to extend the body of knowledge in the area of green development and a suggested significant input will give much emphasize on the new valuation technique in valuing green building properties.