Properties with high energy-efficiency ratings typically sell for up to 10% more, a review of international research shows.
The review, which was conducted by the University of Wollongong, compiled research undertaken in 14 countries and included data from the Australian Capital Territory (ACT), which is the only Australian jurisdiction to require that sellers disclose the energy-efficiency rating of their home.
What were the review findings?
In the ACT, the review found there was a 9.4% price premium for a house with a 7-star NatHERS rating (see below) compared to a house with 3-star NatHERS rating and a 2.4% premium for a 6-star house.
If you consider that the ACT has a median house price of $773,635, that equates to potential price premiums of $72,721 (7-star) and $18,500 (6-star).
This latest review backs up similar research findings conducted by the University of Western Sydney in the commercial building sector, in which disclosing energy ratings is standard practice across Australia.
“Everybody wants an energy-efficient home. After all, an energy-efficient home is comfortable to live in, without large energy bills,” says Dr Daniel Daly, a research fellow at the Sustainable Buildings Research Centre, University of Wollongong.
“These can be important factors for prospective home-owners or renters.”
How can I improve my property’s NatHERS rating?
The Nationwide House Energy Rating Scheme (NatHERS) is a star rating system out of ten that rates the energy efficiency of a home, based on its design.
The government’s Your Home website is a great starting point when it comes to making your property more environmentally sustainable.
It includes information and tips on how to include more energy-saving features in your home, which may include solar panels, insulation, double-glazed windows, draught sealing, batteries, and rainwater tanks.
Need finance for your energy-efficient property project?
There are many advantages to owning a property with a high NatHERS rating.
So if you’re looking to build, renovate or simply upgrade your property, then get in touch. We’d love to talk to you about your financing options.