Identifying Market Segment for the Assessment of a Price Premium for Green Certified Housing: A Cluster Analysis Approach

While the literature confirms existence of a green premium, various researchers have acknowledged importance homogeneity in dataset used for premium assessment. This study developed systematic approach to extract sales subsample containing transactions from green-certified apartments and their most similar counterparts based on cluster analysis. The applied k-means PAM clustering algorithms split an extensive sample 81,605 into subsamples. A peers was extracted estimation. results indicate that through analysis, market segment above 80% total housing could be identified. Through hedonic model, 26.2% identified entire (no segmentation). However, this value reduced 12.2 17.8% when estimated clustering, respectively. These findings implications close assessment certification impact sale prices. In addition, they can also serve as indicator categories need extra effort promote practices particular segment.