SINGAPORE (EDGEPROP) - Incorporating environmentally sustainable elements is now a necessity for builders and developers, who are also doubling down on sustainable buildings, as buyers are more willing to fork out more to stay in a green home.
According to Kimberley Markiewicz, senior analyst at JLL’s living research team in the United Kingdom, 63% of would-be home buyers surveyed in London say they want to purchase a more environmentally friendly home, and 82% of this group say they were willing to pay more for one.
Separately, property giant City Developments (CDL) released its annual Integrated Sustainability Report on April 13, communicating the company’s efforts to accelerate green building development and sustainability efforts over the next few years. In a statement, CDL group CEO Sherman Kwek says, “In this coming decade leading up to 2030, there is an even more urgent need for businesses to collectively reduce their carbon footprint and actively accelerate climate action.”
In Australia, where the effects of climate change is a hot topic given the latest spate of bushfires in the country, some cities are planning entire carbon-neutral precincts. One example is Barangaroo South, an upcoming 7.5ha rejuvenation project near Sydney’s Central Business District. It is jointly developed by the state government and Australian developer Lendlease, who is behind Singapore’s Paya Lebar Quarter.
According to Lendlease, buildings in Barangaoo South are designed to be carbon neutral. The area includes a water treatment plant that will supply one million litres of recycled water a day to buildings in the precinct, as well as a waste management plant that has diverted more than 5,400 tonnes of waste from landfills over the past three years. The whole project is expected to be completed in 2023.
Ang Kian Seng, group director of environmental sustainability at the Building and Construction Authority, says that Singapore’s built environment is responsible for a quarter of the city’s yearly carbon emissions. To reduce this, the industry will need to change the way buildings are constructed and run, he wrote in a 2018 commentary.
CDL is forging ahead in this area. Last year, the developer achieved a 38% reduction in carbon emissions intensity from its benchmark output in 2007, and the company says it is on track to achieve its target of a 59% reduction by 2030. Over the past eight years, the company has also saved more than $28 million due to energy-efficient and retrofitting works at eight of its commercial buildings here. It has also tapped on green financing to secure its first green loan last year, amounting to $500 million for future property development projects.
In the UK, the government has set out bold energy efficient standards and net zero carbon emissions for households in the country, says Markiewicz. A net zero building is one that produces an equal amount of energy that it consumes over a period.
She adds that residential rental laws will gradually be tightened so that only energy efficient homes will be allowed to be rented out. The market for green homes also favours investors and landlords, given the high demand and high retention rates for such residences, especially among younger renters, she says.
“It is also the differentiator in the market for newer properties, as older homes would often need extensive redesign to incorporate key sustainable elements and biophilic design, including the use of natural materials and energy efficient technologies,” says Markiewicz.
In general, green homes are expected to command resale values 6–8% higher than average homes in the same area, and these purpose-built homes will more easily incorporate newer sustainable technologies than older homes, she says.
“Buying a home now that is already built with future energy efficient standards in mind will save a lot of investment in the future,” says Markiewicz.
Read also: