Get the maximum ROI from green buildings

WEALTH CREATION

Investing in green properties might just be the way to go in 2010.

While it may be too early to predict the trend, a panel of the industry’s movers and shakers is certain that with the Malaysian government’s GBI incentives and proposed Feed-in Tariff (FIT) stimulus, sustainable properties are the blue-chip investments this year.

Star Property sits down with a panel of industry experts at Desa Sri Hartamas to discuss the issue. The panel includes:
• BK Sinha, project manager director of C2C

• Y.K. Wong, director of Rehda Institute

• Dev Kumar Nair, director of Khong & Jaafar (property valuers)

• Yang Sean Fook, principal of GE Consultant
• Kenny Chong, business development manager of Kumpulan Ikram and
• Lincoln Lee, executive director of Lucas Works

Why is going green a good investment?
“When we take into account the ROI in the long run, we know green properties are much more economical,” says Lincoln Lee.


Malaysia Energy Center is designed to be a super-energy-efficient building using only 286 kWh/day.

“As an industry that allegedly consumes more than two-thirds of the world’s energy, we should look into the best possible solution for our industry,” adds Lee, whose Smart & Cool home technology is GBI-qualified.

The Smart & Cool technology is able to reduce the temperature inside a house. Although it is revolutionary, Lee acknowledges that its high cost is a big turnoff to both developers and consumers. However, he is quick to point out that the real issue is not the cost; instead, it is the lack of awareness.

Lee is currently in talks with Kumpulan Ikram Sdn Bhd to launch a real estate project that uses Smart & Cool tech. He explains that a green project of 50 houses or more will cost 2% to 3% more than a conventional housing project.

“The good news is, the Government has our backs. GBI incentives and the proposed FIT mechanism will generate the maximum ROI for green properties,” says Dev Kumar, who also suggests that property owners invest in the Solar Photovoltaic (PV) system (cells that convert solar radiation into direct current electricity).

Kenny Chong of Kumpulan Ikram nods in approval and states that a green building will have higher market value in 2011.

“Malaysia seems to be well on its way to becoming one of the few Asian countries that practices the FIT system,” says BK Sinha.

The FIT proposal will be introduced in Parliament in 2010 and is set to become a part of Malaysia's 10th energy plan for 2011 to 2015. If the Parliament passes the proposal, the tariffs will take effect early 2011.