Sustainable development has been a key initiative by large property developers since a decade ago.

Admittedly, since green awareness was lacking back then, developers like City Developments Limited (CDL) faced an uphill task in trying to convince tenants to move to a green office space.

However, in January 2008, the real estate industry received a big push from the Singapore government when it set up the Inter-Ministerial Committee on Sustainable Development (IMCSD) to formulate a national strategy for Singapore’s sustainable development.

Fast-forward a decade later, green buildings are no longer a novelty in Singapore.

Under the Building and Construction Authority’s (BCA) new ruling, all new buildings will have to be eco-friendly.

This means that they need to comply with BCA’s Green Mark standards before they can attain their Temporary Occupation Permit (TOP).

Commitment to social responsibility

Nowadays, big multinational companies (MNCs) consider green office space as part of their Corporate Social Responsibility (CSR).

In fact, some of these MNCs have started tracking and reporting their carbon footprint to enhance their position as an environmentally-conscious company.

In addition, companies have come to realise that workers in green buildings are more productive.

According to experts, green buildings have improved ventilation and have eradicated the use of painted surfaces that produce gaseous substances.

This can significantly improve the health of workers and their ability to operate at maximum efficiency. It also reduces the number of sick days.

Commanding top dollar

However, rentals for green office space are not cheap.

Taking the example of CDL’s eco-friendly office buildings, Tampines Grand and Tampines Concourse, a Grade 'A' green office space is approximately 42 per cent more expensive compared to traditional Grade 'A' office space.

According to data from CommercialGuru, the average per sq ft price for traditional Grade ‘A’ office space in the Central Business District (CBD) is about S$6 to S$7 per sq ft.

For a Grade ‘A’ green office space in Tampines, it is estimated to be around S$5.50 per sq ft but could go up to as high as S$10 per sq ft in the CBD.

Moving forward, we can expect more green buildings to dominate our skyline.

In 2009, the IMCSD and BCA launched an ambitious target that will require at least 80 per cent of the buildings in Singapore to achieve the BCA Green Mark Certified rating by 2030.

This is expected to result in annual savings of S$1.6 billion in terms of energy cost reductions.

Steve Melhuish is an entrepreneur who has 20 years of experience building businesses in Asia and Europe. In 2006, he co-founded AllProperty Media Pte Ltd with his partner Jani Rautiaine.  read more Reach Steve Melhuish at: