SMART FEATURE INDEX RATING TOOL FOR SMART LIVING HOUSING VALUATION

Abstract

Conventional housing valuation uses the comparison approach due to homogeneous housing features, despite its limitations in capturing intangible hedonic qualities. Smart Living (SL) housing, with distinctive features prioritising resident well-being, requires a specialised valuation approach. Despite challenges in quantifying Smart Living housing's gross development value, the cost approach is deemed appropriate. This research introduces the Smart Feature Index Rating (SFIR) tool, a novel method for designing and validating valuation via a cost approach. A 5-point Likert scale survey of 45 experts was conducted to rank 43 Smart Living elements based on practicality and adoption likelihood using the Relative Importance Index (RII). Findings reveal five levels of Smart Features Implementation ranging from Certified to Diamond, forming an index rating framework for Smart Living housing valuation. This study contributes a systematic evaluation framework that integrates hedonic components to represent Smart Living housing value accurately.