The effect of BEAM Plus certification on property price in Hong Kong

Chi Man Hui, Cheuk kin Tse, Ka hung Yu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

8 Citations (Scopus)

Abstract

In response to the public’s increasing awareness of sustainable development, the construction industry has introduced “green” buildings which emphasize better environmental performance. However, as a building’s environmental performance is difficult to discern for laymen, different green building certifications have been established for evaluations in this regard. This study evaluates whether there exists a price premium for living space in buildings certified with BEAM Plus. The findings show that the prices of flats in BEAM Plus-certified buildings are 4.4% higher than those in nonregistered buildings, and that housing units in buildings with an “unclassified” rating are transacted at a discount of 5.9%. Nevertheless, if homebuyers mistake an “unclassified” building for a non-registered building, due to the non-disclosure of the “unclassified” result by developers, the price premium of BEAM Plus certification becomes higher (6.2%). Regardless, the price premium is much lower than those on the office sector. The reasons behind such differences can be attributed to the disparities in the tangible and intangible benefits associated with green living space and green office space. Policy implications with reference to Hong Kong’s GFA concession policy are then discussed.
Original languageEnglish
Pages (from-to)384-400
Number of pages17
JournalInternational Journal of Strategic Property Management
Volume21
Issue number4
DOIs
Publication statusPublished - 2 Oct 2017

Keywords

  • BEAM Plus
  • Green building certification
  • Hong Kong
  • Residential property price

ASJC Scopus subject areas

  • Strategy and Management

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