Responsible Investment

Green buildings in Asia and the Green Mark standard

September 14, 2011
http://www.youtube.com/watch?v=18k84c3lZDM
“The Singapore government introduced the Green Mark program in 2005. It mandated that 80% of the buildings in Singapore should be Green Mark certified by 2030. The general assumption is that consumers are not willing to pay extra for a green building. However, NUS research shows that Green Mark buildings actually enjoy a 4% Green Mark premium, which means home buyers in Singapore are willing to pay extra for green buildings.” Yongheng Deng explains that it is this Green Mark certification that makes consumers want to pay more. “China does not have such a program. Some smart developers are already building green and using that in advertising, but research shows that consumers there are not yet willing to pay more for a green building. This suggests that the Chinese government should propose an initiative to set up a Green Mark standard like the Singapore government did.”

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About ‘BCA Green Mark’

Author(s)

Yongheng Deng
Professor of Finance and Real Estate, National University of Singapore

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