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Impact Of Indoor Environmental Quality And Innovation Features On Residential Property Price And Rent In Malaysia: A Review

Author

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  • Megat Mohd Ghaza Rahman
  • Maryanti Mohd Raid
  • Asmma' Che Kasim
  • Khadijah Hussin

Abstract

Green building concept, a trend in developed nations, has spread to Malaysia. The green features improve the functions of buildings and promises higher returns. Indoor environmental quality (IEQ) and Innovation (IN) are among six criteria of Green Building Index (GBI) that building owner needs to attain for its building to be certified as ”green" in Malaysia. The benefit of IEQ is to create conducive indoor environment for building occupants for living and working. While IN is to meet the objectives of GBI through green building design initiatives and sustainable construction practices. The research question is does IEQ and IN features give direct impact to residential property price? Therefore, this paper will review the broad literature regarding the impacts of indoor environmental quality (IEQ) and innovation (IN) for residential property and its implication to market price and rent. The early hypothesis of this paper anticipate that innovation (IN) and indoor environmetal quality (IEQ) features will indirectly increase residential property market price and rent in spite of the lack of comparative financial data. From this paper, it is hope that the positive impacts of these features will encourage building owners, developers and other main development actors to put these criteria into the same consideration as other criteria in GBI as one of the way to compensate the impact of the building towards economic, environment and social features.

Suggested Citation

  • Megat Mohd Ghaza Rahman & Maryanti Mohd Raid & Asmma' Che Kasim & Khadijah Hussin, 2015. "Impact Of Indoor Environmental Quality And Innovation Features On Residential Property Price And Rent In Malaysia: A Review," ERES eres2015_133, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2015_133
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    References listed on IDEAS

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    5. Sarah Sayce & Louise Ellison & Judy Smith, 2004. "Incorporating Sustainability in Commercial Property Appraisal. Evidence from the UK," ERES eres2004_204, European Real Estate Society (ERES).
    6. Nevin, Rick & Watson, Gregory, 1998. "Evidence of rational market valuations for home energy efficiency," MPRA Paper 35343, University Library of Munich, Germany.
    7. David Harrison & Michael Seiler, 2011. "The political economy of green office buildings," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 29(4/5), pages 551-565, July.
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    10. Tan, Teck Hong, 2008. "Determinants of homeownership in Malaysia," MPRA Paper 34909, University Library of Munich, Germany.
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    Cited by:

    1. Lizawati Abdullah & Wan Nur Ayuni Wan Ab Rasid & Thuraiya Mohd, 2018. "The Role of Valuer in Sustainable Valuation: A Review," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(2), pages 740-749, February.

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    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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