Breaking the Cost Wall: Tackling Barriers to Sustainable Construction in Johor Bahru

Abstract

Sustainable construction is gaining traction globally, yet its adoption in Malaysia remains uneven, particularly within the residential sector. In rapidly expanding urban hubs like Johor Bahru, the transition to sustainable housing is frequently stalled by financial apprehensions. This study aims to identify specific cost-related barriers hindering sustainable residential projects and evaluate practical mitigation measures to overcome them. A quantitative, cross-sectional survey was conducted involving 63 construction practitioners, including contractors, consultants, and developers in Johor Bahru. Respondents were selected via non-probability purposive sampling from professional industry directories. Data were analysed using descriptive statistics and the Relative Importance Index (RII) to rank the criticality of barriers and the effectiveness of strategies. The results indicate that perceived risks and uncertainty regarding the financial and technical performance of sustainable buildings constitute the most critical barrier (RII = 0.898). This is closely followed by financial constraints of clients/contractors and limited access to capital. Conversely, government investment, local production of green materials, and accessible green financing emerged as the most effective strategies to mitigate these costs. The study suggests that overcoming cost walls requires a coordinated approach. Policymakers must move beyond advocacy to provide tangible financial mechanisms, while the industry must strengthen local supply chains to reduce reliance on expensive imported green materials. While previous studies have examined national-level barriers, this research offers context-specific empirical evidence for Johor Bahru’s residential sector, providing targeted recommendations for developers and policymakers operating in high-growth urban environments.