The valuation of sustainable urban development: A pre-carbon tax review
- Publication Type:
- Conference Proceeding
- State of Australian Cities Conference (SOAC), 2011, pp. 1 - 12
- Issue Date:
Whilst debate currently surrounds the introduction of a carbon tax in Australia, the property industry has commenced gearing towards the development of sustainable green office buildings with such a tax incorporated in its business plan. This plan incorporates both the development of new green star rated commercial office buildings and the retro fitting of existing office buildings. This paper identifies factors in the evolution and operation of a carbon tax which should impact on the value of sustainable commercial office buildings. It identifies difficulties and deficiencies in the determination and reporting of value and highlights the importance of valuation models correctly and sufficiently distinguish between sustainable and non-sustainable development. The paper concludes with a pre carbon tax analysis of various classes of commercial office buildings, the cost of sustainable outgoings and a review of the lease structure needed to ensure unsustainable development is attributed to the owner of the property, not passed onto the user or lessee.
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