Green Value for Real Estate

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Last week, there was the news said about Leonardo DiCaprio (Yes the famous actor) was spotted checking out an apartment on Fifth Avenue, New York; the Greenwich Village which has three bedrooms, marble bathrooms, a library and a dressing room and a parking space at 12,975,000 dollars, But the point is not about him or the luxurious of the location and the duplex, but it was about what had been reported that the apartment, is LEED-certified. (see

The value of the green building is not just only directly with its environmental friendly and energy-efficient features. But it is also reflected into market value and premium attribute of the properties.

The recent study by Property and Portfolio Research (PPR), a subsidiary of CoStar, one of the largest commercial real estate information company in US., revealed that the renters (at 24% of the responders) are willing to pay a premium for LEED certified apartment, seconded only to the location of the apartment. The study showed LEED certification for the apartment is more important than Transit Oriented Developments, Fitness Centers, Finishes and even if the building is new or not. This might mean something for the developer isn't it?

What put LEED upfront as their concern factor for choosing the apartment? It might be the result from years of effort by USGBC that promoting the benefit for the resident of living in the LEED certified apartment accordance to LEED rating system which that the residents will live in a healthier, more comfortable environment which emission and intoxication from paint, adhesives, carpet and other materials are lower. The resident can save an energy bill as the building was designed for the best energy-efficiency appliances and lighting,

Beside those above, the consumer perceive the project with green certification was developed by the better real estate developer that care for an idea urban living. LEED certification is now a symbol to the premium quality project with the good will.

Although this is story is about what t happen in U.S. which you might say it is not or will never happen here in Thailand. But you might aware for its uncertainty if this movement might also diffuse to the country sooner or later. And with this economic situation, it is the premium consumer group that still have the buying power which they will seek for the best value for money. Then it comes to how the developer can bring to any premium to the customer which 'Green' aspect of the project could be one of your choice. Therefore, it is better for you to prepare and get ready before your competitor will make you.

Writer : Aracha Krasae-in   Date :2013-12-04