A report from property marketplace Domain reveals buyers are willing to pay on average $125,000 more for energy efficient homes in Australia, writes Charlotte Wentz.
Research from online property marketplace Domain reveals Australian houses with energy efficient features, such as rooftop solar panels, sell for an average of $125,000 more than homes without.
The “Domain Sustainability in Property Report” was released in June 2022 and reveals energy efficient houses sell faster and that buyers are willing to pay significantly more for them.
The report also shows Australians are willing to pay on average $72,750 more for energy efficient apartments.
As year-on-year house prices trend upwards, the premium buyers are willing to fork out for energy efficiency also rises, with the difference being $78,625 just three years ago.
In 2021, buyers were willing to pay $115,000 more for houses and $81,000 more for units.
The real estate market in Australia, especially at the top end, is heavily focused on sustainable homes, especially as the uptake of batteries and electric vehicles rises and buyers are seeking homes with existing energy efficiency features such as EV chargers.
The Domain report also shows home buyers have more choice when it comes to energy efficient properties, which makes sense given the upward swing of residential renewable energy in Australia.
According to analysis from real estate company Ray White, in the 12 months to May 2022, more than 101,000 properties with rooftop solar panels were listed for sale, up from 80,000 in 2020.
The number of Australian properties for sale with battery storage to May 2022 was 3366, up from 1819 in 2020, while off-grid properties for sale rose from 809 to 1362 in the same period.
Domain reports that houses with sustainable features receive 8.7 per cent more online views, and sell around four per cent faster.
“Sustainable homes come at a price premium, but there are many benefits,” says Nicola Powell, Domain chief of research and economics.
“You can sell for a price premium, sell quicker, get more buyer demand and save money in the long run on the running costs of a home.”
The price difference between energy efficient homes and non-energy efficient homes is greatest in Queensland and Victoria, with a 28.9 per cent and 24 per cent higher value, respectively. In NSW, the premium value is 16.9 per cent.
The nationwide average is 17.1 per cent.