Obsolescence in hedonic price estimation of the financial impact of commercial office buildings: The case of Kuala Lumpur

This paper discusses the empirical findings of an analysis of the financial impact of obsolescence using the hedonic price technique. The difference between the rental price of a building and the highest rental price of office buildings in the market was used as the measure of the financial impact of obsolescence on the building. The analysis shows that the financial impact caused by obsolescence can be analysed and estimated for use in building design and investment appraisals.