Analyzing the effects of green building on housing prices: case study of Kaohsiung, Taiwan

Numerous studies have examined the factors affecting housing prices and the effects of green building on commercial real estate, but few of them have focused on the effects of acquiring a green building on housing prices. In addition, these studies mostly used the ordinary least squares regression model instead of the more detailed quantile regression model. Given these considerations, this study collected transaction data (2012-2017) on residential buildings in Taiwan's Kaohsiung City to analyze the effects of green building on housing prices. The results showed that common variables such as housing area, number of rooms/parlors/bathrooms, floor number, total number of floors, housing age, and ground/automated parking lots significantly affected housing prices, and there is underestimation or overestimation in different price houses. The prices of green building label and green building candidates were also significantly higher. Moreover, the impact of green buildings on housing prices is higher than that of common variables, and the impact on low- and medium-priced houses is also higher than that of high-priced houses. Therefore, the promotion and marketing of green buildings can be strengthened in future, so that consumers can obtain the benefits that green buildings create on society, the environment, and sustainable development, and they are willing to pay prices for green buildings.