Assessing the effect of housing attributes and green certification on Malaysian house price

Purpose: Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate. Evidence from the literature has pointed out that incorporating green features into residential buildings can reduce...

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Published in:International Journal of Housing Markets and Analysis
Main Author: Chuweni N.N.; Fauzi N.S.; Che Kasim A.; Mayangsari S.; Wardhani N.K.
Format: Article
Language:English
Published: Emerald Publishing 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85182460550&doi=10.1108%2fIJHMA-10-2023-0145&partnerID=40&md5=1f2b92f33b76bc57389b2c5727f6bc95
id 2-s2.0-85182460550
spelling 2-s2.0-85182460550
Chuweni N.N.; Fauzi N.S.; Che Kasim A.; Mayangsari S.; Wardhani N.K.
Assessing the effect of housing attributes and green certification on Malaysian house price
2024
International Journal of Housing Markets and Analysis


10.1108/IJHMA-10-2023-0145
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85182460550&doi=10.1108%2fIJHMA-10-2023-0145&partnerID=40&md5=1f2b92f33b76bc57389b2c5727f6bc95
Purpose: Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate. Evidence from the literature has pointed out that incorporating green features into residential buildings can reduce operational costs and increase the building’s value. Although green real estate is considered the future trend of choice, it is still being determined whether prospective buyers are willing to accept the extra cost of green residential investment. Therefore, this study aims to investigate the effect of housing attributes and green certification on residential real estate prices. Design/methodology/approach: The impact of the housing attribute and green certification in the residential sectors was assessed using a transaction data set comprising approximately 861 residential units sold in Selangor, Malaysia, between 2014 and 2022. Linear and quantile regression were used in this study by using SPSS software for a robust result. Findings: The findings indicate that the market price of residential properties in Malaysia is influenced by housing attributes, transaction types and Green Building Index certification. The empirical evidence from this study suggests that green certification significantly affects the sales price of residential properties in Malaysia. The findings of this research will help investors identify measurable factors that affect the transaction prices of green-certified residential real estate. These identifications will facilitate the development of strategic plans aimed at achieving sustainable rates of return in the sustainable residential real estate market. Practical implications: Specifically, this research will contribute to achieving area 4 of the 11th Malaysia Plan, which pertains to pursuing green growth for sustainability and resilience. This will be achieved by enhancing awareness among investors and homebuyers regarding the importance of green residential buildings in contributing to the environment, the economy and society. Originality/value: The regression model for housing attributes and green certification on house price developed in this study could offer valuable benefits to support and advance Malaysia in realising its medium and long-term goals for green technology. © 2023, Emerald Publishing Limited.
Emerald Publishing
17538270
English
Article

author Chuweni N.N.; Fauzi N.S.; Che Kasim A.; Mayangsari S.; Wardhani N.K.
spellingShingle Chuweni N.N.; Fauzi N.S.; Che Kasim A.; Mayangsari S.; Wardhani N.K.
Assessing the effect of housing attributes and green certification on Malaysian house price
author_facet Chuweni N.N.; Fauzi N.S.; Che Kasim A.; Mayangsari S.; Wardhani N.K.
author_sort Chuweni N.N.; Fauzi N.S.; Che Kasim A.; Mayangsari S.; Wardhani N.K.
title Assessing the effect of housing attributes and green certification on Malaysian house price
title_short Assessing the effect of housing attributes and green certification on Malaysian house price
title_full Assessing the effect of housing attributes and green certification on Malaysian house price
title_fullStr Assessing the effect of housing attributes and green certification on Malaysian house price
title_full_unstemmed Assessing the effect of housing attributes and green certification on Malaysian house price
title_sort Assessing the effect of housing attributes and green certification on Malaysian house price
publishDate 2024
container_title International Journal of Housing Markets and Analysis
container_volume
container_issue
doi_str_mv 10.1108/IJHMA-10-2023-0145
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85182460550&doi=10.1108%2fIJHMA-10-2023-0145&partnerID=40&md5=1f2b92f33b76bc57389b2c5727f6bc95
description Purpose: Sustainability represents innovative elements in determining the profitability of real estate investments, among other factors, including the green component in real estate. Evidence from the literature has pointed out that incorporating green features into residential buildings can reduce operational costs and increase the building’s value. Although green real estate is considered the future trend of choice, it is still being determined whether prospective buyers are willing to accept the extra cost of green residential investment. Therefore, this study aims to investigate the effect of housing attributes and green certification on residential real estate prices. Design/methodology/approach: The impact of the housing attribute and green certification in the residential sectors was assessed using a transaction data set comprising approximately 861 residential units sold in Selangor, Malaysia, between 2014 and 2022. Linear and quantile regression were used in this study by using SPSS software for a robust result. Findings: The findings indicate that the market price of residential properties in Malaysia is influenced by housing attributes, transaction types and Green Building Index certification. The empirical evidence from this study suggests that green certification significantly affects the sales price of residential properties in Malaysia. The findings of this research will help investors identify measurable factors that affect the transaction prices of green-certified residential real estate. These identifications will facilitate the development of strategic plans aimed at achieving sustainable rates of return in the sustainable residential real estate market. Practical implications: Specifically, this research will contribute to achieving area 4 of the 11th Malaysia Plan, which pertains to pursuing green growth for sustainability and resilience. This will be achieved by enhancing awareness among investors and homebuyers regarding the importance of green residential buildings in contributing to the environment, the economy and society. Originality/value: The regression model for housing attributes and green certification on house price developed in this study could offer valuable benefits to support and advance Malaysia in realising its medium and long-term goals for green technology. © 2023, Emerald Publishing Limited.
publisher Emerald Publishing
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