5 days ago
Demand for energy efficient houses growing across Australia, Domain report finds
Energy efficient houses are a "must-have" for a growing number of buyers, commanding a premium price in markets across the country, property experts say.
The demand is reflected in real estate advertising with half the homes currently for sale touting some sort of energy efficient feature, according to a new report from the property website Domain.
North-facing homes, double-glazed windows and solar panels are all attractive features that offer year-round comfort as well as smaller energy bills, the report says.
Domain's chief of research Nicola Powell said much of that demand is being pushed by "middle Australia", especially with energy prices set to rise for half a million homes and businesses across from July.
"It does appear that middle Australia is really driving the uptake and driving the price premiums for a more energy efficient home," Dr Powell said.
At a house inspection in Brisbane's south, real estate agent James Austin said buyers had been asking about energy efficiency more and more, particularly for new builds.
He said solar panels, solar hot water and energy efficient lighting were commonly asked about.
"I know the price of housing is very high, but maybe if you spend a bit more at the start you can save in the long run if the house is energy efficient," he said.
In Brisbane energy efficient homes on the market are attracting almost 20 per cent more views online, according to the report.
Dr Powell said for prospective buyers anything that could reduce costs in the long-term was becoming more of a priority.
In Queensland suburbs, including Calamvale in Brisbane's south and Robina on the Gold Coast, houses are selling for up to $300,000 more than non-efficient homes, according to the report.
It said energy efficient units sold for almost 10 per cent more than non-efficient units.
North-facing homes — which provide passive heating in winter and reduced cooling needs in summer — boost the price of a house by $375,000 on average across the country, the report said.
Solar panels continue to be the most popular energy efficient feature, but don't add as much value.
Other features such as roof and ceiling insulation can cut heating and cooling needs by up to 45 per cent.
Homes chew up about a quarter of the country's electricity, with disproportionate share taken by homes with "poor thermal performance", that overheat in summer and lose warmth in winter.
Dr Powell said the challenge of retrofitting Australia's existing housing stock — 70 per cent of which was built before 2003 — is also an opportunity for policymakers.
"If you're thinking about putting in double-glazing or solar panels, it does come at a hefty cost. Having the right policies in place to drive that uptake and ensuring our older housing stock are just as efficient will be a step in the right direction," she said.
Experts warn renters and low-income households risk being left behind unless more incentives to bring older homes up to modern standards are brought in.
Green Building Council of Australia chief executive Davina Rooney said it's important that renters are included.
She urged for more schemes like the Queensland plan to offer grants to landlords for solar panels.
"We need to make these things more common and drive them across every part of the market," Ms Rooney said.
In the ACT all residential property sales and rental advertisements are required to disclose their energy efficiency rating.
Expanding that scheme nationwide would be a step in the right direction, Dr Powell said.
"That really drives transparency and allows a renter to actually see the potential energy efficiency of that home and therefore the potential running costs."
