ACTIVE AND PASSIVE DESIGN FACTORS THAT AFFECT RENTAL DEPRECIATION IN PURPOSE-BUILT OFFICE GREEN BUILDINGS

Green buildings have developed rapidly around the world due to their efficient features in energy conservation and ability to generate high rental value compared with conventional buildings. However, in Malaysia, few investors want to take the risk of putting money in green buildings due to a lack of local specialists and demand from tenants. Therefore, the present study aims to investigate the factors that affect rental depreciation involved in purpose-built offices (PBOs). This study uses a digital questionnaire that is distributed randomly to local specialists in every field related to the evaluation and construction of buildings throughout the country. The research findings show that site location is ranked as the top factor that influences the depreciation of buildings followed by finishing system and building materials, sound system, building management system, lighting and ventilation system, building design, internal environment monitoring system, building energy-efficiency system and water saving system. This result proves that passive design has a stronger effect on the depreciation rate than active design. The originality of this study lies in the fact that it aims to measure the extent of survival of green buildings in Malaysia from an economic perspective because green development has not been fully adapted as many tenants prefer affordable buildings. The findings provide knowledge of PBO green buildings to enable property managers, investors and researchers to minimise the depreciation effect.