Green Building Valuation In The South African Residential Property Sector: Influencing Factors And Barriers To Implementation

The gains of green buildings are replete in literature. However, the role of the property valuer in the valuation of green buildings still remains unclear. The study aims to assess the barriers and factors influencing the implementation of green building valuation in the residential property sector of South Africa. The research employs a quantitative methodology. The study utilised a closed-ended questionnaire to collect data from professionally registered Valuers at the South African Council for the Property Valuers Profession, in the Gauteng province. Statistical techniques such as frequency count, percentages and mean item score were employed in analysing the data. The result showed that the majority of the respondents agreed that the initial cost of green buildings is higher than conventional buildings. Though, the operational costs often tend to offset this initial cost in the long run. Furthermore, the study found that water and energy efficiency features and materials used for construction are key inputs in the valuation of green buildings. Also, the major challenges to green building valuation are the few numbers of the residential green building stock and the lack of cost data on green buildings. The study concludes on the need for collaboration among various stakeholders such as developers, valuers and green-certifying organizations to make cost data available to property valuers and create a sharing platform where such information can be accessed and used by valuers to arrive at credible value opinions on green buildings. Also, the role of property valuers is germane towards ensuring that the value of properties reflects the green building element, therefore their knowledge of sustainability becomes critical.