Green Building Report
Green Building Report
Green Building Report
BUILDING
MARKET
REPORT
Australia
N e w Z e a l an d
2014
TABLE OF CONTENTS
Introduction
Executive Summary
Sustainable Product Leaders
Australia
Green Building Council ofAustralia Overview
Green Building in Australia - Analysis by BCI Economics
New Zealand
.....Green Building in New Zealand - Analysis by BCI Economics
Snapshot of Green Building Report South East Asia
Methodology
Disclaimer
BCI Economics Contacts
INTRODUCTION
With the continuing trend of rising energy prices, increasingly strict governmental regulations and
strong public attention to more environment-friendly approaches to design and construction, green
building has become a more essential matter for the Australian building and construction industry
than it has ever been before. Additionally, a recent report by American industry leader Jerry Yudelson
reveals that the scope of green building in Australia is expanding from just new construction to include
retrofitting of existing buildings, thus further corroborating the growing importance of the issue.
Since BCI has recently expanded into the New Zealand market, this years report also covers the
state of green building in that country. The fact that New Zealand has passed the threshold of 100
commercial buildings being awarded the Green Star by the New Zealand Green Building Council
(NZGBC) makes an inquiry into its domestic market especially worthwhile.
BCI Australia has been conducting surveys into the field of green building since the year 2006. Each
time, industry stakeholders were asked to share their insights and opinions on the status quo of
green building and how it affected their own businesses. Those stakeholders included owners and
developers, architects and engineers, main contractors and subcontractors. The 2014 survey is the
first to include New Zealand but marks the fourth edition of BCIs efforts to shed light on the levels of
development and commitment concerning green building measures and ventures in Australia. The
previous surveys were as follows:
The inaugural survey (April 2006) was conducted in the wake of the release of Al Gores environmental documentary-blockbuster An Inconvenient Truth which
causeda jolt of awareness of the ecological threats and the need for a concerted response. The second survey (January 2008) took place not long before the
biggest economic crisis since the Great Depression hit countries and businesses across the globe. Green building was on the verge of sustainably establishing
itself in Australia when the near-fatal financial breakdown precipitated the construction industry to focus on more short-term issues. Our most recent survey
so far (September 2010) was carried out in the aftermath of the Australian construction market avoiding a recession (due to strong governmental support).
Yet, the lack of sufficient financing continued to hamper construction projects in general and thus green building in particular. This year, 133 respondents in
Australia and 110 respondents in New Zealand participated in the survey. The results confirm that the concept of green building haso put down substantially
deep roots in both the Australian and the New Zealand construction industries. However, there do remain several barriers in both markets for green building to
grow insignificance including the perception of high upfront costs and the insufficient attention to the potential to increase the value of projects as a result of
building green.
So now, without further ado, BCI Australia and BCI New Zealand proudly present the 2014 Green Building Report. This report underscores BCIs advocacy
role for the environment and formsan important element of BCIs vast portfolio of products and services designed to providestakeholders with a greater
understanding of the Australian and New Zealand construction market.
GREEN
PRODUCT
LEADERS
Australia
Executive
Summary
From March to May 2014, 133 developers, architects, builders and subcontractors in Australia
and 110 in New Zealand shared their views on and experiences with green building with the BCI
Economics research team. The main findings were as follows:
Virtually 90% of respondents in Australia and just over 80% in New Zealand have been involved in
a project that entailed green building elements during the period of 2008-2014.
However, only a third of participants in Australia and a quarter in New Zealand pursued certification
by an accredited agency.
In Australia, 62% of those projects received the GBCA Green Star and in New Zealand, 47%
received the NZ GBC Green Star.
Yet, almost half of the Australian respondent professionals indicated that they were very likely
orsomewhat likely to seek an official green building certification. Their New Zealand counterparts
were not quite as motivated with roughly 37% very likely or somewhat likely to seek an official
green building certification. In both countries the Green Building Council Green Star was the
standout choice.
EXECUTIVE SUMMARY
The three most prevalent motives in both countries for companies to pursue green building principles when designing or implementing projects were
foundtobe:
To achieve lower lifecycle costs,
To contribute to the protection of the environment and attenuate the impact of global warming and
To achieve increased building value or marketability.
Conversely, the primary reasons for which respondents from both markets said they opted not to adopt green building principles
in their projects were:
Higher cost of building materials,
Additional time and cost of documentation and
Additional time and cost to research materials.
About 54% of Australian respondents stated that they were able to report some sales growth which they could attribute to green building. This is about the
same number that was given by Australian participants in 2010 when asked about their expectations regarding the effect of green building on sales (53%).
In comparison, around 53% of industry professionals in New Zealand said they witnessed growth in sales because of their green building activity.
Although over 30% of respondents in 2010 believed upfront costs due to green building were over 20%, this figure has dramatically reduced to only 4% and
the typical rating falls in the range between +5% and +15%.
The profile of responses from New Zealand displays fairly similar clustering in the +5% to +15% range.
EXECUTIVE SUMMARY
In spite of a high degree of uncertainty among respondents, cost savings through green building initiatives have been reported in both Australia and New Zealand,
although, on balance somewhat lower than the expectations from the previous Australian surveys.
Although a large number of respondents in Australia and New Zealand had difficulty in estimating the extent by which the value of the buildings in their projects
benefited from the green building classification, more than half of the estimates received from both countries were in excess of +5%.
Calculating the improvement in Return on Investment (ROI) for their green building projects proved the most difficult challenge for our respondents with 50% of
Australian answers and 64% of New Zealand being dont know. However, of those responses which were forthcoming from both markets, it is instructive that
the median improvement was slightly above 5%.
Concerning the technologies that Australian firms actually use in the context of green building, we ascertained that water efficient fixtures and fittings, rainwater
and stormwater management/retention systems and insulation products were the major elements incorporated by industry professionals.
Enterprises in New Zealand named insulation products, energy efficient/intelligent lighting and rainwater and stormwater management/retention systems as the
top three technologies applied.
Design software in Australia was considered most crucial for the fields of heating, lighting and alternative building materials.
In New Zealand, design software was deemed to be primarily important for natural ventilation, heating and energy modelling/baseline analysis.
AUSTRALIA
Green Building
Council of
Australia overview
Romilly Madew
The following year, in 2003, the GBCA launched Australias first holistic environmental rating system for buildings, Green Star.
Today, Green Star is certainly ascendant, with more than 750 building projects certified and a further 435 registered to achieve Green Star ratings. Of the almost
25 million square metres of office space across the whole of Australia, 22 per cent is Green Star-rated.
As ISPTs Chief Executive Officer, Daryl Browning, says: Those investing in or occupying properties need benchmarks they can rely on. Green Star certification
is one of the quality assurance measures everyone can rely on with confidence.
Of course, Green Star is not restricted to offices. We now have more than 120 education facilities either certified or registered to achieve Green Star certification.
Green Star is influencing the design and construction of everything from hotels to hospitals, schools to shopping centres, fire stations and train stations, libraries
and leisure centres, restaurants and retirement villages.
The Green Star Performance rating tool was released to address the sustainability of the 340 million square metres of non-residential building space that is
ripe for retrofit. According to the Property Council of Australia, the cost of running these buildings is, conservatively, $27 billion dollars each year.
Meanwhile, the Green Star Communities rating tool is addressing sustainability at the precinct scale, and we will soon see hundreds of thousands of people
living in precincts, neighbourhoods and communities with Green Star ratings.
A range of international reports have confirmed that green buildings positively impact everything from operational costs to return on investment, and from
reputational equity to productivity. The Building Better Returns report (2011) found that Green Star-rated buildings deliver a 12 per cent green premium in value
and a 5 per cent premium in rent, when compared to non-rated buildings. The Property Council/IPD Australian Green Property Index (June 2014), found that
Green Star-rated CBD office assets outperformed the broader CBD office market by 100 basis points.
Green Star buildings are recording productivity increases of up to 15 per cent, which is perhaps why Colliers Internationals Office Tenant Survey (2012) has
found that 95 per cent of tenants want to be in a green building. Green space is now one of the top four attributes tenants look for along with bike racks,
childcare facilities and a gym.
10
Each year, the Dow Jones Sustainability Index is led by Australian companies, such as Stockland, GPT Group, Investa and Lend Lease. Similarly, the Global
Real Estate Sustainability Benchmark (GRESB), which now reports on 49,000 assets in 46 countries worth AUD$1. 73 trillion dollars in value, identifies Australia
as the global leader.
So, what does the future hold? Certainly, the number of Green Star-rated buildings will continue to escalate, as developers, investors and building users
all recognise that green makes good business sense, as it reduces costs, enhances transparency, accountability and risk management, and improves
productivity, health and wellbeing.
Many projects now aim for 6 Star Green Star World Leadership ratings, as project teams understand how to design for higher Green Star benchmarks on
conventional budgets. Even projects that dont attempt to achieve a Green Star rating are designed by some of the same architects and designers working on
Green Star projects, and we are seeing current Green Star principles embedded into many projects around the country.
But the Green Star story is about more than just buildings. If we were to plot the evolution of the Green Building Council of Australia over last 12years, wed
see an early emphasis on the environmental benefits of green building such as kilos of carbon, litres of water and tonnes of waste evolve to consider economic
benefits such as payback periods, cost savings, asset values and vacancy rates. As weve matured, weve expanded our thinking to recognise and reward
social return on investment such as shared value, improved productivity, health and wellbeing, and skills development.
Today, we are increasingly talking the language of social sustainability about how our buildings benefit people. Our next great challenge is to put a value on
the social capital to be gained from green building.
The World Green Building Council is currently working on two projects that exemplify this shift. A new socio-economic category for rating tools will guide the
design and delivery of buildings that empower local communities, create jobs and upskill disadvantaged groups. At the same time, a study into the health and
wellbeing benefits of green buildings will provide best practice guidance on the type of green building features that enhance productivity and performance.
As world becomes increasingly interconnected, we have a shared fate and a shared responsibility to our communities, to our society and to our environment.
Asthe world adapts, and the market adapts, Green Star will continue to adapt. Why? Because everyone should have the opportunity to learn in asustainable
school, work in an efficient office, or live in a healthy home and because Green Star is the mechanism to help us create sustainable places for everyone.
11
Green
Building
Council
of Australia
fast facts
750
More than
750
Green Star
certified
projects
member
organisations
More than
60,000
people
trained in
Green Star
45
Staff
435
Green Star
registered
projects
12
Innovative
Green
Facades
Green facades may look simple in appearance.
However, multiple factors go into planning and
detailing a successful green facade. Like our
clients, each facade that Tensile creates is
unique, and innovative solutions are Tensiles
forte. We at Tensile pride ourselves on our
ability to create unique designs and are
genuinely excited by opportunities to develop
new ways of doing things. A one-size-fits-all
mentality is certainly not what Tensile is about.
We take the time to understand our clients
needs and create a bespoke solution to meet
their requirements.
www.tensile.com.au
Breakout
box
tHE Value of
Green Star
Findings include:
14
nergy: Green Star-rated buildings have reduced electricity consumption by a total o580,000
E
megawatts per year equivalent to 76,000 average households annual electricity use.
missions: On average, Green Star-certified buildings produce 62 per cent fewer greenhouse
E
gas emissions. The cumulative greenhouse gas savings from the Green Star-rated buildings
surveyed, when compared to the average, totals 625,000 tonnes of carbon dioxide a year - the
equivalent of removing 172,000 cars from our roads.
ater: Green Star buildings use 51 per cent less potable water than average buildings. That saving 3,300,000 kilolitres of potable water ayear
W
is enough to service 18,000 households or fill 1,320 Olympic swimming pools.
Waste: Green Star - As Built certified buildings are recycling 96 per cent of their construction demolition waste. In total, 37,600 truckloads
ofconstruction and demolition waste have been diverted from landfill due to good waste management practices.
For many building owners and managers operating in an increasingly competitive market, the environmental, financial and social benefits of Green Star
buildings are now too good to ignore.
Download The Value of Green Star: A decade of environmental benefits from the GBCA website:
http://www.gbca.org.au/uploads/194/34754/The_Value_of_Green_Star_Key_Findings_web.pdf
15
Green building
more than energy efficiency
While Green Star buildings are better for the environment and cheaper to operate, energy efficiency
is just part of the story.
Abode Woden, an adaptive reuse project developed by GEOCON, is on track to become the
first Green Star-rated hotel in Australia. We understand that truly sustainable practices can deliver
dividends from reduced operating costs and higher profit margins, to improved staff productivity
and brand equity. Achieving a Green Star rating just makes good business sense, says GEOCONs
Managing Director, Nick Georgalis.
Australias first Green Star-rated healthcare facility, the Flinders Medical Centre New South Wing
in Adelaide, houses womens health services and has been designed to deliver high-quality
patient care with a minimal environmental footprint. The new unit increased deliveries of babies by
10percent in its first year of operation - positive proof of the communitys support for hospitals that
provide high-quality care for patients and the environment, with improved healing and recovery rates
increasing bed turnover.
16
Staff and students love RMITs Swanston Academic Building (SAB). The sustainability features, which earned a 5 Star Green Star rating, have delivered higher
quality learning outcomes, as well as greater student engagement and space use. A survey of staff and student surveys found an 85percent satisfaction rating
with the building. Whats more, 77 per cent of staff felt the design, technology and environment within SAB had improved their delivery of learning material and
engagement with students.
Grocons investment in the 6 Star Green Star-certified PIXEL building in Melbourne was vindicated after the developer achieved a positive commercial return.
The $6 million transaction, though modest, netted $1 million more than would a similar-sized, similar quality office without a Green Star rating. This transaction
proves that purchasers are increasingly attracted to unique, innovative and sustainable buildings, said Grocons Chairman Daniel Grollo.
Australand achieved Green Star certification for its Key Spec 1 industrial development because Green Star certification gives us assurance that were futureproofing our investment, says Australands Sustainability Manager, Paolo Bevilacqua. When combined with the fact that it will reduce occupancy costs for
our customers, we believe the Green Star rating gives both Australand and our customers a competitive edge in the market as utility costs continue to rise.
The University of Technology Sydney has three Green Star-rated buildings in the pipeline, including the Frank Gehry-designed Dr Chau Chak Wing Building.
Having Green Star-rated buildings gives UTS an edge in competing for students, says UTS sustainability manager Danielle McCartney`. There is benchmarking
around sustainability and Green Star which could make a difference.
17
GPT Groups new headquarters house some of the happiest workers in Sydney. Prior to moving, just 54 per cent of GPT workers were satisfied with their level of
comfort in their working environment; the new space has achieved a 97 per cent satisfaction rating. Im proud to say I work in a green environment, says one GPT
employee.
Sustainability in action
The Sir Samuel Griffith Centre is a $40 million world-class building and Australias first off-grid, self-powering teaching and research facility. The building gives an
absolute physical expression to this universitys ongoing commitment to sustainability. It is a showcase of genuine sustainable energy alternatives for Australia and the
international community, says Griffith Universitys Vice Chancellor, Professor Ian OConnor.
18
Respondents
profile Australia
The 2014 Green Building Report encompassed 133 respondents in total across Australia. More than three
quarters of those were providers of professional services such as architects, engineers and consultants.
Participants came from companies of all sizes, ranging from such with 1-10 employees to those employing
more than 100 people, with the small companies forming the largest group.
Subcontractor
1%
101
and more
23%
Owner/
Developer
10%
Main
contractor,
builder
12%
Professional
services:
architect,
engineer,
consultant
77%
11-100
30%
1-10
47%
19
Green Building
in Australia
GREEN BUILDING ACTIVITY
Nearly nine out of ten industry players in Australia stated that they had been involved in green building in
one way or another in the six years since 2008. This surpasses the results of our previous studies and
marks a significant increase from the 2010 survey (90 % from 83 %). We can therefore conclude that
at least as far as the sheer affiliation with green building isconcerned the Australian construction
market has reached a decisive penetration rate. Green building appears to have gone mainstream
in the Australian building industry.
AUSTRALIA
100%
95%
90%
90%
84%
85%
83%
85%
80%
75%
70%
2006
21
2008
2010
2014
NSW
100%
94%
89%
90%
84%
84%
2006
2008
80%
70%
2010
QLD
2014
100%
100%
90%
81%
80%
70%
74%
2006
2008
76%
2010
2014
22
ACT
100%
VIC
100%
100%
90%
94%
88%
90%
85%
91%
85%
82%
80%
70%
NT
80%
75%
2006
2008
100%
100%
2010
100%
100%
2008
2010
2014
SA
89%
86%
90%
80%
23
2006
100%
90%
70%
70%
2014
86%
85%
80%
2006
2008
2010
2014
70%
75%
2006
2008
2010
2014
TAS
100%
100%
100%
100%
90%
WA
89%
90%
86%
83%
81%
81%
80%
80%
70%
80%
2006
2008
2010
2014
70%
2006
2008
2010
2014
24
OWNER*
developer*
100%
100%
100%
100%
86%
80%
80%
80%
64%
64%
60%
60%
40%
40%
2006
2008
2014
2006
2008
2014
Furthermore, we also looked at the degree of green building affiliation according to the respondents roles in the industry. Owners and developers
were found to be the primary champions of green building in Australia, achieving 100% involvement. This may reflect an appreciation of the
value of a Green Star rating in attracting and retaining tenants.
25
Contractor/Subcontractor
100%
Professional Services
100%
80%
80%
75%
60%
90%
54%
64%
69%
60%
45%
40%
40%
2006
2008
2014
2006
2008
2014
26
MAXIMUM PERFORMANCE
NO COMPROMISE
The perfect solution for Green Buildings
GREEN BUILDING
CERTIFICATION
Of those respondents that did pursue and achieve certification, 60%
stated that they sought a Green Star rating as accredited by the Green
Building Council of Australia. The remaining responses were spread
across a wide range of local and overseas accreditation and rating
systems.
YES
34%
NO
66%
Others: LEED,
BREEAM,
GREEN
MARK etc.
30%
LEED (US)
10%
28
GBCA
Green Star
60%
GROWTH
EXPECTATIONS
FOR GREEN BUILDING
- BY BUILDING CATEGORY -
no growth
strong growth
4
2.8
Commercial/Office
Education
2.8
Multi Residential**
2.8
Single Residential
2.7
Public funded/
Community/Legal
3.2
3.3
3.1
3.1
2.6
2.4
Healthcare
2.2
Hospitality
Industrial
2.1
Retail
2.1
3.5
3.1
2.7
2.6
2.6
29
Australia
ON-SITE POWER GENERATION CHP BIOGAS BIOMASS SOLAR SUPPLY & INSTALL ENERGY EFFICIENCY SOLUTIONS
REASONS FOR
INVOLVEMENT
IN GREEN BUILDING
As in previous surveys, the two leading reasons for being involved are
to achieve lower operating costs and concerns for the buildings impact
on the environment although this year they have switched places
in the ranking. That the financial incentive appears to be emerging
ahead of the idealistic motive is supported by the higher rating for the
expected improvement in Return onInvestment.
This year, the third place slot went to another financial incentive option
which had not been considered in previous surveys the enhanced
value and improved marketability of buildings with Green credentials.
As was mentioned in the introduction, Australia is now seeing green
building principles applied to building refurbishments and upgrades.
Having a good Green Star rating is being seen as important for retaining
tenants as well as attracting them.
The relatively minor relevance of Green Building in government tendering
probably is a measure of how well the principles are now being taken
for granted. However, this still remains an issue for contractors who
need to know how to deliver a green product at a competitive price!
60%
80%
100%
86%
62%
82%
73%
72%
65%
40%
64%
60%
Requirement of developer/owner
63%
62%
61%
22%
46%
38%
28%
2010
2014
0%
20%
40%
60%
80%
60%
56%
69%
61%
91%
85%
62%
62%
76%
77%
81%
62%
67%
63%
62%
59%
62%
64%
100%
85%
Owner/Developer
40%
31
20%
0%
47%
31%
43%
38%
35%
80%
79%
53%
Professional Services
Contractor/Subcontractor
REASONS AGAINST
INVOLVEMENT IN
GREEN BUILDING
We also survey the negative attitudes in the building and
construction industry dissuading participants from getting
involved in green building. As in our previous surveys
(cited by over 90% of respondents) the perceived higher
cost of building materials was confirmed as the most potent
objection.
40%
60%
Higher costs of
building
materials
80%
100%
80%
100%
66%
48%
48%
41%
45%
0%
20%
20%
40%
60%
62%
66%
Higher costs of
building materials
81%
62%
45%
50%
38
45%
75%
50%
38%
63%
38%
44%
50%
Owner/Developer
Professional Services
Contractor/Subcontractor
32
FAMILIARITY WITH
CERTIFICATION SYSTEMS
The level of familiarity with the Green Star system as administered by
the Green Building Council of Australia is encouraging. Although we
are unable to make a direct comparison with our previous survey, there
is reason to believe that it continues to improve, as in 2008, 37% of
respondents claimed to have good knowledge whereas, in 2014,
45% had either detailed or expert knowledge.
However, there was only limited awareness of other certification
systems. Only 7% of respondents claimed detailed knowledge about
the US LEED system and 5% about the British BREEAM scheme.
Moreover, there was little evidence of working knowledge of the local
regional systems such as Green Mark (Singapore), BEAM Plus (Hong
Kong), GBI (Malaysia), TREES (Thailand) and Greenship (Indonesia).
Although not intended for inclusion in the study, it was clear from the
responses that there is generally a good working knowledge of the
rating tool NABERS (and NatHERS for residential use) for buildings
actual performance which is to be expected following the introduction
of the Building Energy Efficiency Disclosure Act of 2010.
34
LEED (US)
2.0
BREAAM (UK)
1.7
Green Mark
1.4
CGBC (Canada)
1.4
1.3
GBI (Malaysisa)
1.2
TREES (Thailand)
1.2
Greenship (Indonesia)
1.2
BERDE (Philippines)
1.1
Lotus (Vietnam)
1.1
We will later explore the sentiments for and against pursuing certification but
it is worth pausing to consider that more than half of the eligible projects are
still unlikely to proceed with Green Star accreditation including 16% of the
participants who stated they will not seek certification but will still stick to green
building standards.
Not seeking for
certification, but
sticking
to Green Building
standards 16%
Very likely
12%
0%
20%
40%
60%
80%
Green Star
(Australia)
LEED (US)
BREEAM (UK)
Very
unlikely
13%
Somewhat
unlikely
24%
OTHERS
100%
92%
5%
3%
5%
Somewhat
likely
35%
35
PERCEIVED USEFULNESS OF
CERTIFICATION BY BUILDING CATEGORY
The sheer upfront cost is clearly the favourite reason for not seeking certification.
This should be taken into consideration with the result for the option lacking
credit being given to certification by our clients our interpretation is that the
cost is likely to remain a potential barrier even if the client is educated regarding
the benefits of certification. Moreover there is some scepticism regarding the
eventual outcome with 39% believing that the performance reality may not
measure up to what is promised at design stage.
In general terms there appear to be two classes of building type. With offices,
education, public buildings, healthcare and multi-residential would appear to
be the building types which would most benefit from certification.
In contrast, certification is considered less beneficial for hospitality, industrial,
single residential and retail buildings.
completely useful
completely useless
1
0%
3.3
Commercial/Office
Education
3.2
Public funded/
Community/Legal
3.2
Healthcare
3.1
Multi Residential
3.1
20%
40%
62%
41%
39%
39%
36%
Hospitality
2.8
Industrial
2.8
Lacking information on
certification requirements
34%
Single Residential
2.8
33%
Retail
2.8
37
60%
80%
SALES GROWTH
ATTRIBUTABLE TO
GREEN BUILDING
In previous surveys, BCI elicited the expectations for commercial
benefits of getting involved in green building. In 2014 we took the
opportunity for a reality check and we asked about the outcomes of
those initiatives.
In 2008, respondents were particularly optimistic about the sales
opportunities afforded by green building and 16% anticipated
significant growth with a further 44% who expected some growth.
0%
20%
60%
80%
100%
6%
11%
16%
Significant
14%
42%
Some
44%
69%
Little/None
31%
37%
11%
10%
9%
Dont Know
2014 reality
2010 expectations
0%
These views were tempered in 2010 and 11% believed the sales
growth would be significant and 42% thought there would be some
growth.
40%
20%
40%
2008 expectations
60%
80%
100%
15%
Significant
6%
13%
14%
18%
Some
0%
62%
70%
Little/None
63%
Dont Know
8%
7%
Owner/Developer
25%
Professional Services
Contractor/Subcontractor
38
ADDITIONAL UPFRONT
BUILDING COSTS ATTRIBUTABLE
TO GREEN BUILDING
10%
0%
20%
4%
20% or more
12%
The good news in 2014 is that the 2010 experience has not
carried over with only 4% of our respondents assessing the
additional cost factor as in excess of 20% and the major share
falling into the +5% to +15% range.
Less than 5%
3%
12%
5%
No impact
16%
2014 actuality
0%
25%
2010 actuality
0%
4%
40%
60%
6%
6%
15%
13%
19%
8%
Less than 5%
5%
46%
20%
6%
0%
2008 belief
20%
No impact
28%
16%
Dont Know
Owner/Developer
19%
13%
Dont Know
40
19%
10%
60%
20%
17%
19%
20% or more
50%
22%
16%
0%
40%
30%
9%
It has always been taken for granted that green building would
involve additional building costs. It has also been frequently cited
that the extra expense was a major factor inhibiting the uptake of
green building design principles.
30%
23%
31%
14%
13%
13%
8%
27%
25%
Professional Services
Contractor/Subcontractor
SAVINGS IN OPERATING
COSTS ATTRIBUTABLE
TO GREEN BUILDING
10%
0%
7%
20% or more
10%
11%
50%
60%
15%
15%
13%
14%
9%
13%
8%
9%
Less than 5%
40%
15%
8%
30%
16%
14%
20%
4%
3%
5%
No impact
Dont Know
44%
29%
2014 actuality
2010 actuality
0%
20%
20% or more
6%
15% to less than 20%
6%
2008 belief
40%
60%
15%
8%
6%
40%
11%
12%
15%
15%
15%
12%
13%
23%
11%
13%
Less than 5%
0%
No impact
2%
Dont Know
Owner/Developer
19%
8%
38%
Professional Services
45%
Contractor/Subcontractor
41
DESIGN IS
SUSTAINABLE
Discover commercial
flooring solutions from
the worlds largest carpet
manufacturer and recycler
At Shaw Contract Group we are
dedicated to creating the most
beautiful and sustainable flooring
in the world.
As the worlds first flooring
manufacturer with Cradle to Cradle
CertifiedCM products, we use
processes and materials that enable
us to offer over 300 Cradle to Cradle
CertifiedCM carpet tile and broadloom
products that can be remanufactured
again and again.
Australia
1800 556 302
shawcontractgroup.com.au
New Zealand
09 574 0640
jacobsens.co.nz
20%
INCREASE IN BUILDING
VALUE ATTRIBUTABLE TO
GREEN BUILDING
This is another subject impacted by a high degree of uncertainty.
Although the percentage of Dont Know responses was high at
44%, this was substantially lower than the level of 58% recorded
in 2008.
It was disappointing to see that 13% of the responses were
that green building had No Impact on the value of the building.
Nevertheless, the distribution of the other responses were
comparable with those for previous surveys.
Looking at the results according to respondent type,
we again see that owners and developers had a higher
estimation of the benefit to building value of green
building than the other respondents as well as the
lowest dont know percentage.
0%
20% or more
4%
3%
13%
0%
10%
No impact
7%
12%
13%
2%
0%
2014 actuality
0%
58%
2010 actuality
0%
20% or more
44%
29%
2008 belief
20%
40%
60%
4%
6%
3%
15%
6%
15%
6%
11%
23%
14%
6%
No impact
Dont Know
Owner/Developer
10%
Dont Know
Less than 5%
43
20%
18%
16%
17%
5%
Less than 5%
60%
11%
9%
40%
8%
10%
12%
31%
15%
19%
23%
31%
Professional Services
45%
Contractor/Subcontractor
INCREASE IN RETURN
ON INVESTMENT (ROI)
ATTRIBUTABLE TO
GREEN BUILDING
With respondents struggling to estimate operating cost savings and
improvement in building value it is not surprising that 50% of the
responses to this question were Dont Know just marginally better
than the result for2008.
We can however conclude that the improvement in ROI is reasonably
comparable with what was expected previously with the distribution
of responses fairly similar across the 3surveys
Consistent with the two previous questions, the owners and
developers are clearly more confident of the degree of improvement
than the professional services and contracting sectors.
10%
20%
30%
5%
8%
7%
6%
10%
14%
16%
17%
15%
10%
10%
5%
No impact
3%
12%
5%
Dont Know
29%
2014 actuality
2008 belief
20%
5%
6%
0%
40%
60%
8%
1%
0%
44%
40%
2010 actuality
0%
15%
8%
7%
15%
12%
13%
60%
4%
3%
50%
2%
20% or more
20% or more
40%
16%
19%
0%
Dont Know
Owner/Developer
31%
11%
13%
31%
Professional Services
49%
50%
Contractor/Subcontractor
44
Australias lea
der
in eco-friendly
Western Red
Cedar building
products
First in sustainability
First in performance
Acoustic absorption
Thermal protection
Energy efficient
Add warmth and style
2.5
2.5
2.4
Energy modelling
/baseline
2.3
2.3
Specify material
quantities
2.3
46
2.2
0%
TECHNOLOGIES EMPLOYED
IN GREEN BUILDING
PROJECTS
In Australia, the three clear leaders were water efficient fixtures and
fittings, rainwater and stormwater management/retention and insulation
products for roofs, ceilings, walls and pipes. These were fairly closely
followed by energy efficient/intelligent lighting, renewable energy
systems and energy efficient appliances.
It will be interesting to see how this develops over the following years.
Some technologies, such as co-generation and tri-generation energy
systems will probably continue to suit only a limited range of projects,
however, it would be rewarding if the use of recycled and renewable
materials, waste water treatment and building control systems were to
climb into the 60% and 70% ranges.
20%
40%
60%
80%
100%
Water efficient
fixtures and fittings
87%
87%
86%
Energy efficient/
intelligent lighting
81%
79%
75%
69%
Sustainable
roofing solutions
61%
Sustainable wastewater
management
Responsible sourcing of
bio-based and renewable
(raw)materials
60%
46%
42%
35%
Whole building
energy simulation
32%
Intelligent HVCA
monitoring systemst
Co-generation and
tri-generation
Water sub-metering and
leak detection systems
27%
22%
17%
47
Green
Building
Products and Technologies -
Water efficient
fixtures and
fittings
Brand Recognition
Rainwater
and
stormwater
management/
retention
No brands reported
Insulation
products for
roofs, ceilings,
walls and
Energy efficient/
pipes
intelligent
lighting
L EA DE RS
WA NT E D!
Intelligent HVAC
monitoring systems
Energy
management Responsible
Systems (EMS) sourcing of
bio-based
and renewable
(raw) materials
Honeywell; Siemens;
CBus; Siemens;
Schneider; DEOA;
Greensense; Ecovision; IMS
Solahart;
SMA; Apricus;
Zen; Canadian Solar;
Sunpower; Dux; Tindo Solar;
Rheem; Energy Bank; AAA solar;
Venergy; Blue Moon Solar; BP Solar;
Solar Gain; Harelec; Edwards Solar; Bosch;
Optimal; Brothers Armstrong; Madison; Avic;
Energysmart; Renewable Energy Solutions (Voltlogic);
Going Solar; Solar Tube; Rinnai/Beasley SHW; Jemena;
Martini; Polymax; Acoustica; Ingenero;
Newcastle Solar; Edson; LG;
Q-Cells; ReneSola
Renewable
Energy Systems
Co-generation
and tri-generation
49
Energy efficient
appliances
Use of recycled or
renewable materials In tiles, carpets,
doors, paints
Sustainable
roofing solutions
Reflective
roofing
Kingspan;
Ritek; Lysaght;
NZ Metal Roofing
Manufacturers Association Inc.;
Fielders; Stramit; Revolution Roofing;
Kalzip; Autex; Austral Panel; Tridek;
Colorbond; Impact; Solaris; Boral;
Durra Panel (Ortech); Atlantis Cell;
Ruuki; Hufcor; Cool Roof
systems and paints;
Bluescope/Lysaght; Stramit;
Zinco; Elmich
Colorbond; Kingspan (incl. AirCell); Fytogreen; Dulux; Revolution
Enviro-Septic; Taylex;
Roofing; Ritek ; CSR Bradford;
Ozzie Kleen; Worm
Elmich; Atlantis Cell; NZ Metal Roofing
Farm; Oztech; Atlantis;
Manufacturers Association Inc.; Fielders;
Allied Pumps; Biocycle;
Kalzip; Greenmark; Metro; NXT; Ardex
EcoGuardians; CST
membranes; Carter Holt Harvey (CHH);
PolyAir; The Green Wall Company;
Wastewater; Veolia; Ovivo;
Fletchers Insulation;
Wastewater Australia; Aquapoint
Stoddard; Zinco;
(AquaCELL); Purator; Humes;
Stratco
Rocla; Spel; H20 Pure Plus; Diston
Sustainable
materials,
wastewater
management - green roofs
Dual plumbing,
on site treatment
facilities
NEW ZEALAND
G reen B uilding in ne w z e a l a nd
Respondents profile
NEW ZEALAND
In New Zealand, the respondent size comprised 110 professionals from the domestic building and construction industry. 60% of all New
Zealand survey participants were employed in professional services as architects, engineers or consultants.
A range of company sizes were represented with small enterprises making up the largest share.
Subcontractor
2%
Main
contractor,
builder
21%
52
101
and more:
Owner/
Developer
19%
22%
Professional
services:
architect,
engineer,
consultant
58%
11-100 =
36%
1-10 =
42%
G reen B uilding in ne w z e a l a nd
0%
100%
90%
20%
40%
60%
80%
100%
Professional
Services
90%
Developer
89%
80%
70%
60%
77%
Owner
50%
Contractor/
Subcontractor
40%
58%
30%
20%
10%
0%
2014
NZ
AUSTRALIA
53
G reen B uilding in ne w z e a l a nd
YES
24%
Others: GBCA
Green Star,
Green Mark etc.
33%
NO
76%
Home Star
20%
54
GBCNZ
Green Star
47%
G reen B uilding in ne w z e a l a nd
GROWTH EXPECTATIONS
FOR GREEN BUILDING
- BY BUILDING CATEGORY -
no growth
strong growth
Education
2.6
Publicly funded/
community/legal
2.6
2.6
2.8
2.6
2.7
Single Residential
2.5
Multi Residential
2.5
Commercial/
Office
2.8
2.81
2.2
Healthcare
2.4
2.1
Hospitality
2.2
1.9
Retail
2.1
1.9
Industrial
2.1
New Zealand
Australia
55
G reen B uilding in ne w z e a l a nd
0%
20%
40%
60%
80%
80%
REASONS FOR
INVOLVEMENT
IN GREEN BUILDING
73%
64%
65%
59%
64%
Lifecycle cost reduction has the clear lead as the most important
objective, with concern for the environment a reasonably close
second choice. Not far behind is the intention to gain enhanced value
and marketability through green building credentials.
Interestingly, there are some strong differences as well as similarities
between the attitudes of the various respondent types. On the whole,
the contractors and subcontractors are more inclined to find benefit
in getting involved, including, like their Australian counterparts, to be
eligible to win Government tenders!
One could summarise by saying there is a healthy balance between
what is good for the business and what is good for the environment!
82%
58%
63%
Requirement of developer/owner
52%
61%
36%
46%
33%
38%
New Zealand
0%
Australia
40%
20%
60%
81%
80%
75%
75%
76%
72%
68%
65%
62%
47%
100%
80%
81%
64%
47%
27%
28%
85%
72%
72%
25%
31%
88%
67%
67%
52%
Owner/Developer
56
86%
69%
72%
100%
39%
68%
60%
Professional Services
Contractor/Subcontractor
G reen B uilding in ne w z e a l a nd
0%
REASONS AGAINST
INVOLVEMENT IN
GREEN BUILDING
As was recorded for the Australian market, cost related
issues, in particular, the costs of materials, were considered
the major obstacles for the industry to pursue green building
initiatives.
A slightly different picture emerged regarding the respondent
roles, with New Zealand builders and subcontractors being
noticeably more negative than the other respondents as well
as their counterparts in Australia.
20%
40%
60%
80%
100%
80%
100%
66%
Higher costs of
building materials
70%
48%
48%
54%
52%
48%
43%
45%
45%
New Zealand
0%
Australia
20%
40%
60%
83%
Higher costs of
building materials
63%
92%
69%
48%
72%
56%
35%
35%
76%
56%
63%
56%
34%
Owner/Developer
Professional Services
76%
Contractor/Subcontractor
57
G reen B uilding in ne w z e a l a nd
FAMILARITY WITH
CERTIFICATION SYSTEMS
Knowledge of the Green Star systems does not appear to be as deep
in New Zealand as in Australia although the result may be diluted
between the responses for the New Zealand and Australian versions.
Making allowances for that, it would seem that around 30% of
respondents are claiming detailed or expert knowledge compared with
45% in Australia.
Regarding the awareness of International systems, there was quite
adrop from the local to the UK BREEAM and US LEED systems with a
similar gap between these and the local regional schemes. However,
one respondent did claim detailed knowledge of the Vietnamese Lotus
system.
58
Green Star
(Australia)
2.6
Green Star
(New Zealand)
2.9
LEED (US)
1.8
BREAAM (UK)
1.8
1.3
Green Mark
1.4
CGBC (Canada)
BEAM Plus
(Hongkong)
1.2
GBI (Malaysisa)
1.2
TREES (Thailand)
1.2
Greenship (Indonesia)
1.2
BERDE (Philippines)
1.1
Lotus (Vietnam)
1.1
G reen B uilding in ne w z e a l a nd
Although, at 37%, the percentage of respondents who indicated they are very
likely or somewhat likely to seek official green building certification was behind
that of Australia, this does represent a substantial improvement over the 24%
that had sought accreditation for previous projects.
We will later explore the sentiments for and against pursuing certification and
addressing those issues may help to convert the 21% of respondents who are
committed to stick to green building principles while still not seeking certification.
LEED (US)
2%
Not seeking for
certification,
but sticking
to Green Building
standards 21%
Very likely
14%
Green Star
(Australia)
46%
BREEAM (UK)
4%
NZ
Green Star
48%
Somewhat
likely
23%
Very
unlikely
17%
Somewhat
unlikely
25%
59
G reen B uilding in ne w z e a l a nd
completely useless
1
completely useful
4
Commercial/
Office
3.2
Cost of
certification process
Education
3.2
Healthcare
3.2
Public funded/
Community/Legal
20%
40%
62%
38%
37%
3.1
Difficulty of certification process
33%
3.0
Multi Residential
Hospitality
2.8
33%
Single Residential
2.8
Lacking information on
certification requirements
33%
60
Retail
2.6
Industrial
2.6
60%
32%
23%
80%
G reen B uilding in ne w z e a l a nd
0%
SALES GROWTH
ATTRIBUTABLE TO
GREEN BUILDING
The pattern of sales growth in New Zealand fairly closely
matches that observed in Australia. 7% of firms in our survey
attributed significant sales growth to green building activity
with a further 11% reporting some growth. In our working
figures, Little growth was also reported by a further 35% of
respondents.
Looking at the results according to respondent type, we noted
that the design and engineering professionals witnessed the
largest sales increase, followed by owners and developers.
20%
40%
60%
100%
80%
100%
7%
6%
Significant
11%
14%
Some
67%
69%
Little/None
16%
11%
Dont Know
Australia
New Zealand
0%
Significant
80%
20%
40%
60%
5%
9%
4%
14%
12%
Some
4%
27%
Little/None
39%
31%
36%
Dont Know
27%
46%
Owner/Developer
Professional Services
Contractor/Subcontractor
61
G reen B uilding in ne w z e a l a nd
0%
20% or more
10%
4%
20%
8%
16%
12%
20%
19%
9%
5%
No impact
Dont Know
35%
28%
New Zealand
Australia
0%
20%
4%
18%
14%
12%
5%
13%
12%
0%
Dont Know
Owner/Developer
20%
14%
8%
Less than 5%
60%
12%
6%
40%
9%
5%
60%
13%
13%
Less than 5%
20% or more
62
50%
12%
No impact
40%
7%
The profiles for the estimate of actual additional costs was fairly
comparable with that for Australia clustering in the +5% to +15%
range. As is the case in Australia owners/developers are at the
upper limit of the estimates with contractors at the lower limit.
30%
18%
11%
12%
31%
Professional Services
36%
42%
Contractor/Subcontractor
G reen B uilding in ne w z e a l a nd
SAVINGS IN OPERATING
COSTS ATTRIBUTABLE
TO GREEN BUILDING
10%
0%
20% or more
7%
6%
40%
60%
10%
14%
13%
6%
Less than 5%
3%
13%
8%
47%
44%
Dont Know
Australia
New Zealand
0%
20%
9%
20% or more
4%
5%
11%
14%
14%
18%
8%
8%
15%
Dont Know
Owner/Developer
60%
12%
12%
8%
Less than 5%
40%
8%
8%
5%
No impact
50%
9%
No impact
30%
10%
11%
20%
47%
46%
Professional Services
50%
Contractor/Subcontractor
63
G reen B uilding in ne w z e a l a nd
0%
INCREASE IN BUILDING
VALUE ATTRIBUTABLE TO
GREEN BUILDING
Unfortunately the degree of uncertainty regarding this issue
has gone beyond the 50% mark. However, we can draw the
conclusion from the responses of those participants who have
provided estimates that there are improvements in building value
attributable to green building but of a modest nature. 17% have
indicated improvements of at least 10%.
At slight variance with the results for the savings in operating
costs shown above, construction contractors and subcontractors
appear the most confident of the increase in building value for
green projects.
10%
20%
30%
6%
10%
12%
Less than 5%
16%
10%
10%
No impact
13%
Dont Know
Australia
0%
0%
0%
10%
5%
No impact
20%
30%
50%
60%
70%
3%
5%
5%
15%
9%
11%
6%
4%
6%
8%
15%
14%
18%
55%
Dont Know
Owner/Developer
40%
8%
56%
44%
New Zealand
0%
60%
6%
3%
20% or more
50%
5%
4%
20% or more
64
40%
50%
Professional Services
Contractor/Subcontractor
61%
G reen B uilding in ne w z e a l a nd
INCREASE IN RETURN
ON INVESTMENT (ROI)
ATTRIBUTABLE TO
GREEN BUILDING
We have to approach this subject as it relates to the New
Zealand experience with some caution. Respondents
found it difficult to estimate operating cost savings and
improvements in building value and therefore we should not
be surprised that some 64% of the participants registered
aDont Know answer for their estimated increase in ROI.
0%
10%
30%
40%
8%
Less than 5%
16%
10%
11%
12%
No impact
Dont Know
Australia
10%
0%
No impact
20%
30%
40%
50%
60%
70%
2%
4%
0%
4%
6%
5%
5%
4%
9%
9%
64%
50%
New Zealand
70%
6%
6%
60%
4%
5%
20% or more
50%
2%
2%
20% or more
0%
20%
6%
4%
6%
8%
15%
14%
18%
55%
Dont Know
Owner/Developer
62%
Professional Services
68%
Contractor/Subcontractor
65
G reen B uilding in ne w z e a l a nd
66
2.2
2.2
Energy modelling/
baseline
2.2
2.2
2.1
2.0
Specify material
quantities
2.0
G reen B uilding in ne w z e a l a nd
0%
TECHNOLOGIES
EMPLOYED IN GREEN
BUILDING PROJECTS
The stand out product in green building projects in New Zealand
was insulation with a 90% response rate perhaps the climate
conditions may account for this to be a basic assumption in
most construction projects.
This was followed at some distance by energy efficient/intelligent
lighting at 73%. The other leading items comprise the others
from the top 4 technologies as cited in the Australian survey,
namely rainwater and stormwater management/retention and
water efficient fixtures and fittings.
Apart from the result for insulation, generally the New Zealand
market appears to be trailing Australia in the adoption of these
green technologies and it will be interesting to see how quickly
this gap will close.
20%
40%
60%
80%
90%
Energy efficient/
intelligent lighting
73%
69%
Water efficient
fixtures and fittings
68%
61%
58%
46%
Sustainable wastewater
management
43%
38%
32%
Sustainable
roofing solutions
31%
29%
Whole building
energy simulation
26%
Intelligent HVCA
monitoring systemst
Co-generation and
tri-generation
Water sub-metering and leak
detection systems
100%
24%
10%
8%
67
G reen B uilding in ne w z e a l a nd
Green
Building
Products and Technologies -
Brand Recognition
Renewable
Energy Systems
L EA DE RS
WA NT E D!
Intelligent HVAC
monitoring systems
High efficiency
packaged HVAC
systems
Energy
management Responsible
Systems (EMS) sourcing of
bio-based
and renewable
(raw) materials
Siemens; Honeywell;
Delta Controls; Daikin;
Carter Holt Harvey
TriStar; SMA; Schneider;
(CHH) Wood;
ECS; Warm and Cool
FSC; FPIS; Eco ply;
LVL Hyspan; Forest
stewardship council;
Inzide; TimSpec; JSC
Timber; Juken Nishu
68
Insulation
products for
roofs, ceilings,
walls and
Energy efficient/
pipes
intelligent
lighting
Co-generation
and tri-generation
Azzuro;
Mitsubishi;
Solar city; Alosun;
EECA; Meridian; Suntech;
Renesola; Apricus evacuated
tubes solar hotwater; AA solar; Solar
Farm; Powerhouse wind; Pink batts; NZ
solar; Pellet fire; Bosch; BP solar;
Ecosolar; Jemena
and
stormwater
management/
retention
No brands reported
Energy efficient
appliances
Use of recycled or
renewable materials In tiles, carpets,
doors, paints
Sustainable
roofing solutions
Reflective
roofing
Sustainable
materials,
wastewater
management - green roofs
Dual plumbing,
on site treatment
facilities
Biolytix;
EcoEngineering;
Cleanstream;
Watersmart; Oasis;
EnviroSeptic
Equus;
De Boer; Viking Roofing;
Stormwater 360; Green Air;
Delta Controls; Nuralite; NZ Metal Roofing
Manufacturers Association;
Greenroofs NZ; Sika;
Kingspan; Lysaght
GREEN
BUILDING
MARKET
REPORT
South East Asia
2014
Atondadvise
we are happy
that the
report may be
downloaded
free of charge!
http://www.bciasia.com/our-services/bci-economics/green-building-market-report-south-east-asia/
Publication date: 24th November 2014
69
METHODOLOGY
Research for this report was conducted under the supervision of Dr Matthias Krups PhD, Chairman
of BCI Media Group and spearheaded by Petra Berning, General Manager of BCI Economics.
The survey was taken online and analysed by BCI Economics in-house analysts. Between March
and May of 2014, invitations to participate in our online survey were sent out to a random sample
of contacts drawn from BCIs highly sophisticated industry database. Given that the decision to
participate in the survey was out of interest in the topic of green building, it is fair to assume that our
sample would be likely skewed in favour of sustainability principles.
In order to compare the 2014 results with the results ascertained in the prior surveys in 2006, 2008
and 2010, we utilised a questionnaire that was similar to the previous surveys. A few changes were
made to take account of the new conditions in the market.
For those issues where value judgements were canvassed, a 4 or 5 point Likert scale was adopted
with 1 representing a very negative rating and 4 or 5 a very positive rating.
70
DISCLAIMER
Information utilised in this report is current as of 1 September 2014. This information has been prepared without
taking your specific needs or objectives into account. Because of this you should consider its appropriateness
with regard to your objectives or needs before acting on this information. BCI Economics does not warrant
the accuracy or completeness of the information in this publication, and accepts no, and disclaims all, liability
for any loss or damage whether occasioned by reliance on such information or otherwise. The information
is subject to change without notice and BCI Economics is under no obligation to update the information or
correct any inaccuracy which may become apparent at a later date.
BCI Economics
CONTACTS
Damian Eastman
E: m.krups@bcimediagroup.com
P: 0421 381 000
Petra Berning
COO Australia/NZ
E: d.eastman@bciaustralia.com
P: (07) 3634 8500
E: p.berning@bcimediagroup.com
P: (+49) 2501 809875
Don Smith
Sarah Murphy
E: d.smith@bciaustralia.com
P: (02) 9432 4124
E: s.murphy@bciaustralia.com
P: (07) 3634 8565