Do Buyers Value a Balcony as a Green Feature? An Empirical Analysis of the Hong Kong Residential Property Market

Some property buyers consider green building features such as balconies as an important element in purchasing a residential property. We investigate if there is any effect of a balcony, as a green feature, on property price. We find that balconies exert a strong significant and positive effect on residential property price. Property buyers are willing to pay a significant sale price premium of 4% more for units with balconies. We also find that balconies with different views are valued differently by buyers: a larger premium of 6.9% on a unit with a sea view balcony and 1.5% on a unit with mountain view. However, units with building views are not appreciated by buyers. It implies that properly architecturally designed balconies would add more value to properties and enhance their competitiveness.