Property Hunter Magazine Property Hunter Magazine Issue 50 - January 2014 | Page 47

Green Development Set to Grow Choong said that the demand for the company’s FSC-certified timber products for the first 10 months of the year had risen by 100%, compared to the corresponding period last year. “This year so far, we have sold six containers worth, compared to three 40-ft containers of Accoya timber products with a net value of RM600,000, imported from Holland, in the same period last year. “We expect to sell a total of eight containers with a net value of RM1.5 million this year, an increase of 200% over last year’s sales of RM600,000,” Choong added. Bay 21 Too facade, a green development in Kota Kinabalu, Sabah The spending for green building materials in the country is expected to be between RM900 million and RM1.5 billion over the next couple of years with 300 projects applying for the Green Building Index (GBI) certification as of August 2013. electricity. For example, the building can be designed to face away from the morning and afternoon sun. “The buildings can also be designed to have ventilation systems to reduce electricity consumption,” he said. Penang Green Council director Lawrence Lim said that these 300 projects, with a total built-up area of 63 million square feet, are being built now and comprise nonresidential, residential, and industrial projects. The green building materials include artificial timber made from biomass materials, Forest Steward Council (FSC) certified timber, low volatile organic compound paint, having energy-efficient lighting and appliances, water-saving plumbing fixtures, and alternative power sources such as solar power. Lim is also president of the northern chapter of the Malaysian Institute of Architects. “The construction cost per square foot for a condominium is around RM120, of which 40% or RM48 can be spent on green building materials. “If you multiply 63million square feet by RM48, the potential spending on green building materials is about RM3billion,” he said. According to Lim, although developers could spend up to RM3billion on green building materials to obtain the GBI certification, the actual spending could be around a third or half the amount, which was RM900 million to RM1.5billion, as some may choose to qualify for the GBI certification via green architectural designs. “The design of the buildings can be aimed at reducing the usage of As of August this year, there were some 624 projects in the country that have applied for GBI certification. According to Lim, these projects are expected to generate potential spending of more than RM7 billion for green building materials over the next couple of years. “We can expect a third or half of the RM7 billion or RM2.1 billion to RM3.5 billion to be for green building materials,” Lim said. Meanwhile, G-Solar, a local player in the solar panel installation business, has secured some 50 projects from residential and commercial premises in the northern region so far this year, more or less the same as a year ago. Business and project manager Regine Choo said the orders for solar panels coming from the north had increased by about 20% from January to October this year, due to rising awareness of the feed-in-tariff (FIT) scheme. “Presently, the total wattage from solar power, which is 46MW, that households and commercial premises in the country are allowed to install is not sufficient, as the quota is taken up very quickly,” Choo said. The present quota of total solar power wattage for residential buildings is 18MW and 28MW for commercial premises. “An average size terrace house needs at least 6KW of solar power. “An 18MW quota means that only 3,000 households in the country can install solar panels,” she said. Choo said if the Federal Government removed the quota or set a higher quota, there would be more demand and sales of solar panels would improve. Accoya timber products are in high demand in the construction industry worldwide currently because of it’s performance benefits such as its dimensional stability, durability, machinability, and ultra violet resistance. “The demand for FSC timber flooring products comes from individual home owners and high-end condominium projects who prefer the use of green building materials. “The growing awareness on the advantages of green flooring products is one of the reasons for the increase in demand. “Some of the advantages include sustainable foresting, which will not harm our eco system. “The timber is also treated in a non-toxic manner, protecting the environment from the harmful effects of poisons leaching out of typical wood treatments,” he said. FSC-certified timber is sourced from forest owners that adhere strictly to sustainable practices. The present FIT rate for residential properties is RM1.30 per KW hour, while for commercial premises the rate is RM1.10 per KW hour. This means if you sell 1 KW hour of solar electricity to Tenaga Nasional Bhd, you get back RM1.30 / RM1.10 in payment. Signature Products Sdn Bhd managing director Datuk Finn www.PropertyHunter.com.my 47