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A Study of the Green Building Benefits in Apartment Buildings According to Real Estate Prices: Case of Non-Capital Areas in South Korea

Author

Listed:
  • Kee Han Kim

    (School of Architectural Engineering, University of Ulsan, 93 Daehak-Ro, Ulsan 44610, Korea)

  • Sang-Sub Jeon

    (School of Architectural Engineering, University of Ulsan, 93 Daehak-Ro, Ulsan 44610, Korea)

  • Amina Irakoze

    (School of Architectural Engineering, University of Ulsan, 93 Daehak-Ro, Ulsan 44610, Korea)

  • Ki-young Son

    (School of Architectural Engineering, University of Ulsan, 93 Daehak-Ro, Ulsan 44610, Korea)

Abstract

Recently, the importance of green building certification in consideration of environmentally friendly factors is being emphasized more when constructing buildings in South Korea. The Green Standard for Energy and Environmental Design (G-SEED) is one of the strategies used by the Korean government to effectively reduce building environmental loads. However, due to the large investment needed to acquire green building certification, building owners, stakeholders, and designers often contemplate how to balance G-SEED certification benefits and the additional costs they involve. Therefore, the purpose of this study was to assess the benefits of G-SEED certification in terms of post-occupancy financial advantages through a comparative analysis of real estate prices of apartments in the Yeongnam area. All of the major factors affecting apartment real estate prices in South Korea were considered, and the real estate price difference between G-SEED certified and non-certified apartments was determined through a one-sample t-test. The results demonstrated that G-SEED certified apartment real estate prices were 9.52% higher than non-certified apartments. This study concluded that G-SEED certification–related investment is worth the additional cost as it increases the real estate value of a building.

Suggested Citation

  • Kee Han Kim & Sang-Sub Jeon & Amina Irakoze & Ki-young Son, 2020. "A Study of the Green Building Benefits in Apartment Buildings According to Real Estate Prices: Case of Non-Capital Areas in South Korea," Sustainability, MDPI, vol. 12(6), pages 1-10, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2206-:d:331734
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    References listed on IDEAS

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    1. Seongjo Wang & Sungho Tae & Rakhyun Kim, 2019. "Development of a Green Building Materials Integrated Platform Based on Materials and Resources in G-SEED in South Korea," Sustainability, MDPI, vol. 11(23), pages 1-19, November.
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    Cited by:

    1. Weimin Ma & Zitong Ren & Hua Ke, 2022. "Green Housing Subsidy Strategies Considering Consumers’ Green Preference," Sustainability, MDPI, vol. 14(5), pages 1-22, February.
    2. Yu Cao & Cong Xu & Syahrul Nizam Kamaruzzaman & Nur Mardhiyah Aziz, 2022. "A Systematic Review of Green Building Development in China: Advantages, Challenges and Future Directions," Sustainability, MDPI, vol. 14(19), pages 1-29, September.
    3. Rakhyun Kim & Myung-Kwan Lim & Seungjun Roh & Won-Jun Park, 2021. "Analysis of the Characteristics of Environmental Impacts According to the Cut-Off Criteria Applicable to the Streamlined Life Cycle Assessment (S-LCA) of Apartment Buildings in South Korea," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    4. Dong Hyun Kim & Amina Irakoze, 2022. "Identifying Market Segment for the Assessment of a Price Premium for Green Certified Housing: A Cluster Analysis Approach," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    5. Rana, Anber & Sadiq, Rehan & Alam, M. Shahria & Karunathilake, Hirushie & Hewage, Kasun, 2021. "Evaluation of financial incentives for green buildings in Canadian landscape," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    6. Acinia Nindartin & Hee-Woon Moon & Sang-Jun Park & Kyung-Tae Lee & Jin-Bin Im & Ju-Hyung Kim, 2022. "Influencing of the Building Energy Policies upon the Efficiency of Energy Consumption: The Case of Courthouse Buildings in South Korea," Energies, MDPI, vol. 15(18), pages 1-17, September.

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