The REA Insights Energy Efficiency Housing Report analyses the meaningful trends on sustainable and energy-efficient homes through data from 12 million Australians.

Energy-efficient homes reduce the demand for non-renewable energy resources, wasted energy usage and greenhouse gas emissions through features such as smart design, insulation, energy-efficient heating and cooling, energy-efficient hot water systems, solar power, ventilation, water recycling systems and more.

According to the April Residential Consumer Omnibus Survey from realestate.com.au, 74 per cent of respondents consider an energy-efficient rating as important.

A further 48 per cent said it was “of extreme importance”.

Among the main reasons why they consider it important are energy bills reduction, environmental consciousness, carbon emission reduction and better-designed property.

Meanwhile, the features that most consumers are looking for include solar power, energy-efficient lighting, insulation quality and air flow, including draught-proofing and ventilation. Others also consider energy-efficient appliances, the position of the home relative to the sun and rainwater tanks.

Since 2013, the government has mandated energy-efficient ratings for new apartment developments and standalone houses.

However, a recent study by RMIT, CSIRO and the University of South Australia found that only four in five new houses are being built to the minimum standard and only 1.5 per cent are designed to perform at the economically optimal 7.5 stars and beyond.

Across Australia, only the Australian Capital Territory has a regulated scheme to disclose the energy efficiency rating of housing to prospective buyers, according to REA.

Over 96.9 per cent of listings in ACT have a declared rating — the highest among states and territories. In comparison, the second-highest was Victoria with only 15 per cent, then Western Australia with 14.5 per cent and Queensland with 14.1 per cent.

Most energy-efficient suburbs

High-development areas were found to be the most energy-efficient suburbs over the last five to 10 years because “the minimum energy efficiency requirements would apply to more properties and the volume of new builds has been high”, explained REA Group data analyst Karen Dellow.

Among the most common energy-efficient features included in listings are solar panels and water tanks as well as glazed windows and heat pumps.

In the last 12 months to April 2021, Victoria had the highest number of total listings declaring energy-efficient features in the property description on realestate.com.au, followed by NSW and Queensland.

On a suburb level, Clyde North in Melbourne ranked first, followed by Tarneit in Victoria; Austral, Marsden Park and Box Hill in New South Wales; Werribee and Woller in Victoria; Riverstone in New South Wales; and Barwick and Rockbank in Victoria.

“Clyde North in Melbourne has grown from approximately 8,000 residents at the 2016 census to over 23,000 by 2020. At the last census, there were 3.1 persons per household in Clyde North, which means that potentially over 7,000 new homes have been built to higher energy-efficient standards,” Ms Dellow explained.

Meanwhile, looking at the number of energy-efficient listings as a proportion of all listings on realestate.com.au, Tasmania emerged as the winner, with 25 per cent of listings with at least one energy-efficient feature declared. This was closely followed by the ACT with 24 per cent.

On a regional level, South East Tasmania saw the highest proportion at 31 per cent of all realestate.com.au listings, followed by Hobart with 27 per cent, Darling Downs - Maranoa in Queensland with 26 per cent, and West and North West Tasmania with 26 per cent.

On a suburb level, Meringandan in Queensland had the highest proportion at 86 per cent, followed by Gidgegannup in WA with 74 per cent and Denman Prospect in the ACT with 68 per cent.

Looking ahead

The rising demand for energy-efficient homes could ultimately be a win-win for buyers, sellers and the environment, with the energy-efficient rating not only influencing the value of a property but also encouraging owners to make energy efficiency improvements to their home, Ms Dellow said.

“Realestate.com.au data shows that energy efficiency is of high importance to property seekers, whether they are buying, renting or building. With minimum energy-efficient standards increasingly mandated by governments, the proportion of properties with star ratings above six is increasing,” the analyst highlighted.

As this new trend flourishes across the nation, Ms Dellow encourages a better access to information in order to help property seekers make decisions based on energy efficiency.

“Without a nationwide mandate on declaring the energy efficiency rating, especially when selling a property, property seekers still need to dig deeper to find this information,” she concluded.