BUILDING & ENGINEERING | Staff Reporter, Singapore

Seven in 10 developers prefer to invest in green buildings

And they're willing to pay 5% more.

Seven in 10 developers prefer to invest in green buildings over non-green ones and are willing to spend on them more by at least 5%, the Building and Construction Authority (BCA) revealed.

Based on its survey, over 90% of respondents think that buildings result in lower utility bills, reduced environmental impact, and better health benefits.

More than 70% of homeowners said that green buildings have a better resale value and about half of them were willing to pay approximately 3-4% more for a green building with a BCA Green Mark.

About 80% of the property agents interviewed agreed that green buildings help improve sales and that their clients have a preference to invest in, purchase or rent green developments.

BCA said they felt that their clients would be willing to pay up to 7% more for a home or office in a green building, as compared to one in a non-green building.

Meanwhile, interviews with office tenants showed that they were willing to pay an average of 3.5% premium in the lease for an office in a green building, due to the perceived benefits for their employees. Typically, they expect to generate returns on their higher investment in 7 to 8 years. 

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