PHD Student, Griffith University


This study examines green building costs and price premiums.

In the literature, there is an ambiguity of the real costs and prices of green buildings. This acts as an impediment toward the wide spread green building developments. This study aims to provide a literature review and an empirical study of green building cost and price premiums. The research findings will be a guide for developers and decision makers at early design stages. The aim of the study is to reveal the significant relationships between green buildings and green premiums, and provide a decision-making model as a guidance for developers to predict the real cost and prices of green buildings. With emphasis on green price premiums, we examine the issue from developer perspectives, and draw on data from Gold Coast’s real estate market. As an empirical study, a stochastic frontier analysis is built to predict green cost premium of green residential buildings. As a benchmarking technique, a multiple regression analysis is developed using a frontier statistical method. In order to verify the viability of the benchmark model, a global sensitivity analysis is used to validate the prediction model.