A market driven framework for green affordable housing criteria in Malaysia

Abstract

Green Affordable Housing (GAH) criteria and features are crucial in the development of affordable housing. Developed countries such as United States, United Kingdom and Australia have their own GAH criteria and features for GAH development. In Malaysia there is a Green Building Index (GBI) which is the green rating tools consisting of six criteria; energy efficiency, indoor environmental quality, sustainable site planning and management, material and resources, water efficiency and innovation for green housing development. There is also an affordable housing development guide by the National Housing Policy (NHP) based on two criteria; housing price and income. Since GAH is not completely implement in Malaysia, as such, this study aims to fill the gap that is found in GBI and NHP and match it with the current GAH criteria and features from previous studies. This study also aims to develop a market driven framework representing GAH criteria and features in Malaysia, emphasizing on the real estate market interaction. Data was gathered through a survey distributed to potential home buyers of middle income groups and developers who are certified with GBI in three major cities which are Klang Valley, Penang and Johor Bahru. Data obtained from potential home buyers’ was analyzed using logistic regression analysis, while data derived from the developers was analyzed using descriptive analysis. Next, the perspectives of both respondents on the criterion and features of GAH were matched and analyzed using cross tabulation analysis for framework development purpose. Statistical results confirmed that 75.8 percent of potential home buyers’ were willing to pay more for GAH criteria and features. In fact, both parties agreed to adopt 10 percent incremental costs for GAH. The finding also indicated that six GAH criteria as in GBI and 10 features were suitable to be incorporated into affordable housing development. Finally, the framework development was conducted to put the priority of the important features using Analytical Hierarchy Process (AHP) method. The market driven framework revealed five priorities on the important features for GAH having the weight between 10.6 to 16.9 which are water saving appliances and fittings; design leads to low pollutants; reduce, reuse and recycle materials; energy saving appliances and light fittings; and extensive landscaping. Additionally, 29 eco-labelling components from Product Criteria Document (PCD) by SIRIM were also adapted to the framework in accordance with the government’s requirement. A further framework validation was obtained through feedback from the market and stakeholders and the results illustrated the agreemeent of market driven framework for green affordable housing criteria that contributes to the establishment of the GAH concept in Malaysia. It also serves as a tool for decision making particularly for developers in GAH development.