Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/208143
Title: IS THERE A RENTAL PREMIUM FOR GREEN OFFICES? ANALYSIS OF SINGAPORE OFFICE MARKET.
Authors: XIAO YI
Issue Date: 6-Oct-2021
Citation: XIAO YI (2021-10-06). IS THERE A RENTAL PREMIUM FOR GREEN OFFICES? ANALYSIS OF SINGAPORE OFFICE MARKET.. ScholarBank@NUS Repository.
Abstract: The Building and Construction Authority (BCA) in Singapore launched the Green Mark (GM) Scheme in 2005 to encourage owners to integrate more green features into their buildings. This study aims to understand if tenants are willing to pay the green premium in the office sector and the magnitude of the green premium in office rents. Additionally, this study investigates if the green premium effect in Singapore will fade when green buildings become a norm. Lastly, this study also explores the difference between asking rent, gross rent and effective rent and understand how different attributes would affect those rents. Hedonic Pricing Model (HPM) was used to study rental transactions from 182 office buildings from January 2020, the regression results indicate the existence of green office premium in Singapore. The study found that there was a 5.17% green premium in asking rent. By further breaking down the ratings of the GM, the findings show that the buildings with Platinum have the highest green premium at 7.71% in asking rent, while the Gold Plus amounts the most to gross rent and effective rent at 8.88% and 10.4% respectively. Lastly, office buildings which received the minimum certification indicate 27.1% and 26.1% discount in gross rent and effective rent. Hence, landlords should continue to invest in integrating more green features into their office buildings as tenants become more demanding. This paper fills in the gap in research on the GM premium based on office asking rent, gross rent, and effective rent. It also provides greater understanding on the key drivers of the office rental market in Singapore.
URI: https://scholarbank.nus.edu.sg/handle/10635/208143
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
A0185442A_XIAOYI.pdf1.97 MBAdobe PDF

RESTRICTED

None Available on 02-01-2022

Page view(s)

13
checked on Dec 2, 2021

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.