Different grades and different green premiums: a cross sectional analysis of a green certification scheme

Jayantha, Wadu Mesthrige; Oladinrin, Olugbenga Timo; Javed, Arshad

doi:10.1080/14445921.2021.1943626

Cited by 3 publications

(3 citation statements)

References 67 publications

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“…There are also studies in the residential sector. Mesthrige et al [22] show the relationship between real estate price and green accreditation called BEAM-Plus in Hong Kong. The residential buildings with this rating system recorded an average increase of 6.61% in price premiums.…”

Section: Price Premiums Of Green Buildingsmentioning

confidence: 99%

The Role of Mandatory Building Efficiency Disclosure on Green Building Price Premium: Evidence from Australia

2022

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Extensive studies have examined the financial performance of green buildings in recent years. The results have frequently observed that the premium of green buildings is time-varying and dependent on the study period and markets being examined. Further, virtually no dedicated study has been devoted to examine the role of mandatory building energy rating disclosure policies on green building price premium. This raises the question of whether the mandatory energy rating disclosure policies would have an influence on the financial performance of green buildings. This study assesses the premium of green buildings by considering the role of mandatory energy efficiency of commercial building disclosure program (CBDP) using the MCSI/IPD NABERS data over 2005–2020. The results of the study showed that, in Australia, buildings with NABERS rating of 4 stars and above delivered a higher total return compared with buildings with lower NABERS ratings. This also supports the Freeman’s (1984) social impact hypothesis in which favorable social performance will ultimately lead to favorable financial performance. In addition, our empirical modelling results also demonstrated the premium of green buildings is stronger since the launch of CBDP, reflecting the importance of mandatory building efficiency disclosure. The policy implications of our studies have also been discussed as buildings play a crucial role in achieving the United Nations Sustainable Development Goals (SDGs), particularly net-zero carbon emissions.

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Section: Price Premiums Of Green Buildingsmentioning

confidence: 99%

The Role of Mandatory Building Efficiency Disclosure on Green Building Price Premium: Evidence from Australia

2022

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“…Zhang et al [30], for example, found that new residential units with the Chinese Green Building Evaluation Label (GBEL) attracted a price premium of 6.9% compared with their nonlabelled counterparts. Mesthrige et al [31] found that, on average, residential units with a Hong Kong Building Environmental Assessment Method (HK-BEAM) rating attracted a 5.3% to 6.7% price premium. Further, they observed significant price premium differences across the different ratings available for HK-BEAM certified buildings.…”

Section: Sustainability Advertising In the Residential Property Sectormentioning

confidence: 99%

Sustainability Messages in Residential Property Advertising

2022

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Companies and brands are increasingly addressing issues of sustainability in their marketing and advertising as they respond to consumers’ evolving interests and preferences. While studies have examined the presence of sustainability messages in advertising in general, and in a number of discrete industries, the use of these messages in residential property advertising is critically understudied. Some homebuyers, however, appear interested in these messages, as evidence suggests they ascribe value to certain sustainability claims and features. An analysis of the textual and visual content of 100 property adverts for city centre flats, listed for sale in two English cities in early 2022, afforded detailed insights into the positioning of sustainability in residential real estate advertising. Findings from this analysis indicate that explicit sustainability messages are rare. Property and locational features related to environmental sustainability are mentioned more frequently than those related to social sustainability. Features related to economic sustainability are discussed in adverts targeted at property investors. Sparse explicit discussion of sustainability in adverts might imply that there is little general concern for this issue, either amongst those selling property and/or amongst those buying property. An implication of this might be that pro-sustainability measures targeted at the housing sector may encounter a muted response from actors within the sector, potentially frustrating the implementation of those measures. For homebuyers who are interested in a property’s sustainability, the findings suggest that they are poorly served by current practices in property advertising. Estate agents and developers wishing to appeal to these sustainability-minded consumers might do well to incorporate greater commentary on a property’s sustainability features in their advertising materials.

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“…Also, the use of technologies such as solar panels reduces the energy required by the occupants of properties [13]. In recent years, researchers have shown increased interest in examining the effect of green features on the value of real estate properties [14,15]. Voicu and Been [14] evaluated the effect of communal gardens on the value of real estate properties located in New York City.…”

Section: Introductionmentioning

confidence: 99%

Impact of Green Features on Rental Value of Residential Properties: Evidence from South Africa

Odubiyi,

Abidoye,

Aigbavboa

et al. 2024

Real Estate

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In recent years, scholars have called for an increase in the usage of green features in the built environment to address climate change issues. Governments across the developed world are implementing legislation to support this increased uptake. However, little is known about how the inclusion of green features influences the rental value of residential properties located in developing countries. Data on 389 residential properties were extracted and collected from a webpage. Text mining and machine learning models were used to evaluate the impact of green features on the rental value of residential properties. The results indicated that floor area, number of bathrooms, and availability of furniture are the top three attributes affecting the rental value of residential properties. The random forest model generated better predictions when compared with other modelling techniques. It was also observed that green features are not the most common words mentioned in rental adverts for residential properties. The results suggest that green features add limited value to residential properties in South Africa. This finding suggests that there is a need for stakeholders to create and implement policies targeted at incentivising the inclusion of green features in existing and new residential properties in South Africa.

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Different grades and different green premiums: a cross sectional analysis of a green certification scheme

Cited by 3 publications

References 67 publications

The Role of Mandatory Building Efficiency Disclosure on Green Building Price Premium: Evidence from Australia

The Role of Mandatory Building Efficiency Disclosure on Green Building Price Premium: Evidence from Australia

Sustainability Messages in Residential Property Advertising

Impact of Green Features on Rental Value of Residential Properties: Evidence from South Africa

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