A preliminary study on the relevancy of sustainable building design to commercial property depreciation

Abstract

This preliminary study aims to explore the relationship between sustainable building design paradigms and commercial property depreciation, to assist in the understanding of sustainable building design impact towards commercial building value and rental depreciation. This study employs the qualitative method and analyses valuers' current perception of sustainable design and depreciation issues in Malaysia. The findings present evidence that the eleven factors of sustainable building design paradigms are relevant to commercial property depreciation and obsolescence as agreed by the sample as a whole. Nevertheless, the level of relevancy varied from one factor to another with sustainable HVAC system, sustainable building status and sustainable building system dominate the top three ranking in this study.