RESALE OF GREEN HOUSING COMPENSATES FOR ITS PREMIUM PRICING: AN EMPIRICAL STUDY OF CHINA

ABSTRACT Green housing reduces resource consumption and protects the ecological environment. Sustainable buildings and construction have gained increasing attention in the last decade. Many empirical studies have confirmed that green housing imposes a price premium at the presale stage. The high price could be a concern that prevents homebuyers from purchasing green buildings. However, there is a lack of empirical evidence on whether the premium pricing could be compensated for by the resale price. To address this gap, this study establishes a hedonic regression model to estimate the price premium of green housing at the resale stage. The results show that green housing certified with the Chinese Green Building Label (CGBL) offers a 6% price premium compared with non-green housing at the resale stage. The results also show that green housing with a higher level of green certification, e.g., the 3-star CGBL, provides a greater price premium at resale. The findings indicate that home-buyers can obtain financial compensation for the high cost when purchasing a green home. Our findings also indicate that the price premium for reselling a green home is not always enough to compensate for the purchase cost in different cities. Policy recommendations for government promotion of green housing are also discussed.

Green Housing or Green Gentrification?

Research on green-certified buildings has often been focused on the benefits of green standards, such as energy efficiency, smart growth, resource conservation, and health protection. Recent studies suggest the adoption of a reductionist sustainability planning language can turn green-certified houses into luxury goods, attracting White, prime-age, college-educated households with some pro-environmental attitudes who replace existing long-term, lower-income residents in core urban areas. While many factors may work together in driving neighborhood change and gentrification in cities, the question this study aims to address is to what extent the supply of green-certified units can affect neighborhood change and gentrification? We use Central Virginia’s Multiple Listing Service (MLS) housing market transactions data and the U.S. Census Bureau’s socioeconomic data to present the differential effect of new construction of market-rate, green-certified units in a natural experiment using difference-in-differences estimates. We find that neighborhoods that include new, green-certified units have experienced a statistically significant increase in population, supporting new construction and positively affecting house prices. We also detect some negative effects on minorities and minority owners, but these effects have not yet reached statistical significance. This study finds strong evidence of green housing providing the conditions that make areas ripe for gentrification, but more studies should follow up to better measure and generalize this finding.

The cost of building for the future: the reconciliation of sustainable housing issues in Toronto

Although some green housing elements have become more commonplace in residential renovations in Canada, the undertaking of complete green retrofits is relatively uncommon. This paper explores the barriers to green retrofits, such as affordability and bureaucracy, in the urban context of the City of Toronto. The research was informed by one main case study, one supplementary case study, and six interviews with sustainable housing experts. The research has yielded nine recommendations that are directed towards three levels of government and related public and private housing organizations. These recommendations have been made in the hopes of making sustainable housing more ubiquitous in Toronto.

The cost of building for the future: the reconciliation of sustainable housing issues in Toronto

Although some green housing elements have become more commonplace in residential renovations in Canada, the undertaking of complete green retrofits is relatively uncommon. This paper explores the barriers to green retrofits, such as affordability and bureaucracy, in the urban context of the City of Toronto. The research was informed by one main case study, one supplementary case study, and six interviews with sustainable housing experts. The research has yielded nine recommendations that are directed towards three levels of government and related public and private housing organizations. These recommendations have been made in the hopes of making sustainable housing more ubiquitous in Toronto.

The situation and solutions to develop Green Building in Vietnam

Housing in Vietnames megacities is quite expensive due to limited land availability. Besides, green housing investment requires higher implementation costs than non-green housing investments, plus a Green Building certification fee implemented by international organizations. Despite specific difficulties and problems, green real estate projects bring economic benefits to both investors and users in the long run. Green building development is a trend that is particularly interested in by governments and real estate developers. Through analyzing the current status of Green Building development in Vietnam, the authors have discovered barriers, limitations, and proposed solutions. To develop green buildings effectively, investors need to operate a 5-step process throughout the project life cycle, including Green planning — Green design — Green construction — Green operation — Green lifestyle. Using environmentally friendly materials, energy-saving efficiency in green housing is no longer an unattainable dream for urban residents in Vietnam.