Energy-efficient homes gain traction

Surging energy prices are making energy-efficient homes a main selling point among property sellers.

Ray White chief economist Nerida Conisbee said having an energy-efficient home would likely become increasingly important.

“While we can’t work out exactly how many energy-efficient homes are in Australia, the number of homes advertised for sale with energy efficient features can be measured,” she said.

Ray White’s data covering the past three years ending in May 2022, showed that the term “solar” was the most popular term among advertised listings.

However, “battery” had the highest uptick, increasing by 85% over the past two years.

“This no doubt reflects that while solar panels are good for energy efficiency, being able to store that energy is an even better outcome,” Ms Conisbee said.

“Off grid is still not all that common but also saw a decent pick up over the two-year time period.”

Number of properties for sale advertised with energy-efficient terminology
	2020	2021	2022
Solar	79,860	99,045	101,383
Battery	1,819	2,693	3,366
Off grid	809	1,199	1,362

Note: The figures include sales over the 12 months to May of the specified year.

It is becoming a trend to include energy efficient terminology in the property listing when selling house to generate more interest in the property.

“As to whether being energy efficient results in a higher price is more difficult to work out - given that many things like solar panels and batteries can be added to homes at a later date, it is unlikely to be as big a factor as location, number of bedrooms or land size,” Ms Conisbee said.

Ms Conisbee said the suburbs with the highest number of properties advertised with the terminology above indicate how much government policies are working to ensure new homes are energy efficient.

“The suburbs with the most listings containing the terms “solar” and “battery” are all areas where we see many new homes being developed,” she said.

“In most states, there are strict requirements for energy efficiency inclusions in new homes.”

Top suburbs for energy efficiency
Solar	Battery	Off Grid
Tarneit (Melbourne)	Officer (Melbourne)	Glenwood (Regional Qld)
Baldivis (Perth)	Berwick (Melbourne)	Daintree (Regional Qld)
Sunbury (Melbourne)	Clyde North (Melbourne)	Mudgee (Regional NSW)

While existing homes are not legislated to meet energy-efficiency requirements, some governments are providing various incentives to owners who are making efforts in making their homes energy efficient.

“These incentives have had varying success but have not had the widespread impact that the green initiatives have had for new homes,” Ms Conisbee said.

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