06.26.2024 Lifestyle

Going Green Proven To Increase The Value Of Your Home

Going Green Proven To Increase The Value Of Your Home

Buyers are willing to pay for an energy-efficient home, the latest data reveals.

We make no secret of the fact that we’re big fans of energy-efficient homes. We’ve written about sustainable housing many times, and have seen first-hand how eco- and cost-saving features such as solar power can boost a property’s buyer appeal.

Now, fascinating new data from the Domain Sustainability in Property Report provides an insight into how quickly energy efficient homes sell and what premium they command over other homes.

How many homes are sustainable?

The Domain report reveals that half of all Australian houses and over a third of all apartments now have at least some green features. But, here in Sydney, only 38% of houses have green features – they’re far more common in regional areas.

Across the country, solar panels are the most common energy efficient inclusion in homes for sale. Other common green features ranged from heat recovery ventilation to insulation and double glazing.

In recent years, it has become much easier for homeowners to install energy efficient and “green” features, as both the technology and accessibility to these products has improved.

We also see more and buyers asking about sustainable features and more properties coming to market with these greener features available as a selling point.

The value of having an energy-efficient home

The key takeaway of the Domain Sustainability in Property Report, is that properties with energy-efficient features sell faster and for more.

Weekly Market Insight
Receive Ben Collier's Weekly Market Insight directly to your inbox.
Sign Up
  • Enter your details to receive the report
  • Enter your details to receive the report
  • Enter your details to receive the report
  • This field is for validation purposes and should be left unchanged.

Of particular relevance to our area here in Sydney’s eastern suburbs is the fact that Domain’s report shows “prestigious suburbs are particularly susceptible to value-adding from [Energy Efficient] features”.

The report demonstrated that:

  • Two-thirds of home buyers prefer energy-efficient homes when given a choice.
  • Energy-efficient houses attract more attention from buyers. Nationally, houses had 16.7% more listing views and apartments 6.6% more listing views if they were energy efficient. This was even more pronounced in Sydney where energy-efficient houses saw 27% more listing views and apartments 20.4% more views.
  • Energy-efficient houses also sell quicker than their non-energy efficient counterparts: Nationally, houses saw a -4.0% decrease for days-on-market if they were energy efficient.
  • The “Green Home Premium” (or the average additional amount an energy-efficient property can command) is currently:
    • +$112,000 for houses
    • +$70,000 for apartments.
  • 43% of homes sold have solar panels (the most popular feature) and while these add +$150,000 to the price of a home, the most valuable asset was a north-facing aspect (+$417,500) followed by double-glazed windows (+$187,500).
  • The most frequently used keywords for buyers searching for green homes included:
    • Solar panels
    • Solar
    • Eco
    • Double -glazed
    • Energy efficient
    • Energy saving
    • North-facing
    • Sustainable
    • Heat recovery ventilation

There are many reasons to go green

Achieving a faster sale, for a higher price, is only one reason to go green.

Most people invest in energy-efficient features because there are solid environmental and economic arguments to do so: it can save a homeowner significant money on energy bills and running costs.

Even very simple and small investments, like a rainwater tank to store water to use in the garden can have an oversized effect on the household budget. There are also government rebates and incentives to help homeowners make the shift to greener energy features.

Want more?

If you’re interested in buying or selling an energy-efficient property in Sydney’s Eastern suburbs, get in touch.