INVESTOR PERCEPTION OF SUSTAINABLE BUILDING IN NEW ZEALAND

New Zealand Sustainable Building Conference 2007 – SB07

“Transforming our built environment”

Georgia Myers BPD BPC (Hons)

PhD Candidate1

INVESTOR PERCEPTION OF SUSTAINABLE BUILDING IN NEW ZEALAND

Preliminary findings of the research project ‘An investigation into the elements of sustainable office buildings and market value’




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INTRODUCTION

PhD at the University of Melbourne

Building Research Funding Grant for Investor Perception Research

Research Project – Business Case for Sustainable Buildings in Australia and New Zealand




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OVERVIEW

History Methodology Investor Survey Scope and Limitations Findings Summary




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HISTORY Commencement – February 2006 Completion – February 2009 Research title – “An investigation into the relationship between elements

of sustainable office buildings and market value” Comparative analysis using evidence from New Zealand and Australia




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PROJECT METHODOLOGY

Literature Review of existing research

Stage 1: Investor Survey

Stage 2: Valuer Survey

Stage 3: Market Data




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STAGE 1: INVESTOR SURVEY

New Zealand Survey Major Investment Funds and Companies Survey type – Questionnaire Nine Questions relating to investment decisions and perception of sustainable buildings in New Zealand




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SCOPE AND LIMITATIONS

Survey major investors and developers who play and influential role in the investment and development in commercial office buildings in New Zealand.

Limitations Access to the entire investor population Research timeframe Sensitivity of data




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FINDING 1: Overall Investor Perception of Sustainability

0%

5%

10%

15%

20%

25%

30%

35%

Very Positive Positive Neither Negative Very Negative




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FINDING 2: Investor Actions

0%

5%

10%

15%

20%

25%

30%

35%

Very Active Active Taking some action Planning Not taking any actioncurrently




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FINDING 3: Type of Actions taken by Investors & Developers

0%

10%

20%

30%

40%

50%

60%

New Builds Extensive Upgrade of ExistingPortfolio

Upgrade some buildings Long term upgrade plans Nothing




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FINDING 4: Importance of Sustainability for Portfolios

0%

5%

10%

15%

20%

25%

30%

35%

40%

Very Important Now Increasing Importance Not Important Currently Important in 5 years time Important in 10 years




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FINDING 5: Design vs. Performance

0%

10%

20%

30%

40%

50%

60%

70%

Design Rating Performance




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FINDING 6: Investor Perceptions of Sustainability & Value

0%

10%

20%

30%

40%

50%

60%

70%

Considerably Higher Higher Neither Lower




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FINDING 7: Investor Future Objectives

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

ALL Buildings Majority of Buildings Some Buildings One or two None




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SUMMARY OF FINDINGS

Cluster analysis identified three key groups. 1st group – the pro-active in incorporating sustainability into their portfolio, 2nd group – the undecided made up the majority of investors 3rd group – the skeptics

Majority of investors believed that there was value in sustainable buildings Majority believe sustainability is important right now. An industry rating tool identifying and rewarding building performance is required The investors realise something needs to be done about the sustainability of

their portfolios




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THE FUTURE…….

If you would like a copy of the findings of my research please contact me at [email protected]

Thank you very much to Building Research Questions

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change” - Charles Darwin

Documents

INVESTOR PERCEPTION OF SUSTAINABLE BUILDING IN NEW ZEALAND