DEMAND FOR GREEN CONDOMINIUMS IN SINGAPORE

Abstract

In light of global environmental issues, the call towards environmental sustainability in buildings is imperative. Singapore has responded to this call through the initiation of the BCA Green Mark Scheme in 2005. However, this paper focuses on the demand for Green Condominium (GC) market in Singapore.

The concepts of environmental sustainability and past works by different authors were studied through a literature review. A study of the GC industry revealed that the market is small; GCs are mostly located in the central region and developers are less involved in the GC market.

Consumer demand is one of the key-motivating factors that encourage developers to design green buildings. A survey was conducted with respondents staying at condominiums to understand their awareness, perceptions and responses towards GCs. Data was cross-referenced and refined using a rigorous paired-samples t test.

Findings revealed respondent’s awareness of GC benefits especially in reducing environmental impacts. However, respondents were unaware of green developers and location of GCs. Higher upfront costs was the greatest concern that discouraged consumer demand for GCs. GCs are mostly viewed in terms of its improvement of the quality of life rather than for investment.

Despite the negative perceptions, respondents are open to the idea of staying in GCs but are not willing to pay a price or rental premium for GCs. Measures that are most effective in motivating respondents to buy GCs are financial incentives, greater price difference between GCs and traditional buildings; and lower insurance premiums. Results were inconclusive in ranking consumer’s preferences of different Green features.