SKYRISE GREENERY: PERCEPTIONS, KNOWLEDGE AND THE WILLINGNESS TO PAY

Abstract

Skyrise greenery has increasingly gained significance as an important aspect of green buildings. However, given its incipient application in Singapore, many end-users may not appreciate its benefits nor understand what constitutes skyrise greenery. This study surveys potential condominium buyers on their perceptions and knowledge of skyrise greenery. It also uses the contingent valuation method – a pioneer attempt in Singapore – to explore their willingness to pay for this environmental amenity. The empirical results show that potential condominium buyers are willing to pay (WTP) approximately 0.57% of the total property price for skyrise greenery. A reconciliation of different value points suggests that true perceived value of skyrise greenery is about 1.71% of the total property price. Results from the study also reveal a general lack of knowledge on skyrise greenery. This finding is critical because without sufficient knowledge, it may not be possible for potential condominium buyers to assign a reliable value to skyrise greenery. On the basis that the WTP value has been suppressed by uncertainty and unfamiliarity, it is possible to conclude that if the potential condominium buyers become more aware and knowledgeable about skyrise greenery and the benefits it can bring, there is ample room for the WTP to exceed the current true perceived value. This study also highlights new insights gained from a two-way analysis of benefits respondents perceive to exist against benefits which they regard as important, as well as new approaches in explaining and reconciling the disparity between the willingness to pay (WTP) and willingness to accept (WTA) values.