Energy efficiency impacts Australian property values

Energy efficiency and thermal comfort are increasingly influencing property sale prices in Australia. According to a joint report by Cotality and the Real Estate Institute of Australia titled ‘The Efficiency Edge’, there is a direct correlation between a home’s energy performance and its market value.

Findings indicate that each additional star on the Nationwide House Energy Rating Scheme is associated with an average 1.3 per cent increase in property value nationally. Additionally, homes equipped with solar panels sold for approximately 2.7 per cent more than comparable properties lacking them. The report noted that 86 per cent of surveyed Australians consider a home’s energy rating an important factor during the purchasing process.

A specific case study in Mount Hawthorn demonstrated the financial impact of sustainable design; a three-bedroom home utilizing natural light, cross ventilation, and passive-solar principles sold for between 14 and 24 per cent above comparable local properties.