Valuation of Green Commercial Office Building: A Preliminary Study of Malaysian Valuers’ Insight
Abstract:Malaysia’s green building development is gaining
momentum and green buildings have become a key focus area,
especially within the commercial sector with the encouragement of
government legislation and policy. Due to the emerging awareness
among the market players’ views of the benefits associated with the
ownership of green buildings in Malaysia, there is a need for valuers
to incorporate consideration of sustainability into their assessments of
property market value to ensure the green buildings continue to
increase in the market. This paper analyses the valuers’ current
perception on the valuation practices with regard to the green issues
in Malaysia. The study was based on a survey of registered real estate
valuers and the experts whose work related to valuation in the Klang
Valley area to rate their view regarding the perception on valuation of
green building. The findings present evidence that even though
Malaysian valuers have limited knowledge of green buildings, they
recognise the importance of incorporating the green features in the
valuation process. The inclusion of incorporating the green features
in valuations in practice was hindered by the inadequacy of sufficient
transaction data in the market. Furthermore, valuers experienced
difficulty in identifying what are the various input parameters of
green building and how to adjust it in order to reflect the benefit of
sustainability features correctly in the valuation process. This paper
focuses on the present challenges confronted by Malaysian valuers
with regards to incorporating the green features in their valuation.
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