Green Homes Go Mainstream: Energy Efficiency now a Top Priority for Australians

Eco News
May 30, 2025
6 Min Read

Domain’s Sustainability in Property Report 2025 has revealed that energy-efficient homes are not only fetching premium prices – but are now high on the wishlist for buyers across all budgets and regions.

Australian buyers are increasingly prioritising homes that offer lower energy bills, year-round comfort, and a lighter environmental footprint. The shift is driving a surge in demand for energy-efficient features in both new builds and existing properties.

Coinciding with the report, Domain has unveiled its new Home Efficiency Hub, offering exclusive eco-friendly home tours and expert advice and inspiration on how to make your home more energy efficient and environmentally sustainable.

Key Report Findings:

Energy-efficient homes are hot property, and the numbers prove it

Buyers will pay more for Green: Energy-efficient (EE) houses are selling for $118,000 more than non-EE ones nationally, an uplift of 14.5%, with EE houses in some suburbs selling for up to 75% more. (Table 1).
Melbourne and Perth EE homes command the greatest price premiums: EE homes command serious premiums – up to 23.8% ($197,000) more in Melbourne and 16.1% ($118,000) more in Perth (Table 1).
North Facing equals big dollars: A north-facing house is the most valuable EE feature, adding a staggering $375,500 to a property’s value nationally (Table 2).
Solar and double-glazing pay off: Houses with solar panels fetch $140,000 more, while double-glazing adds $145,000 in value (Table 2).
Buyers are actively searching for EE features: Listings for energy-efficient houses get 13.8% more views, while units attract 6.5% more – a clear signal that features like solar, insulation, smart orientation, and passive design are top of mind for today’s buyers. (Domain Sustainability in Property Report 2025)

Sustainable living goes mainstream, driven by everyday Australians

Eco-friendly is no longer niche: In 2025, over half of all houses (52.2%) and nearly 4 in 10 units (39.1%) sold included at least one energy-efficient feature – like solar panels or double-glazing, up significantly over the past five years (Table 3).
EE features more mainstream in the ACT: Thanks to mandatory energy-efficiency ratings (EER) and modern new-build standards, Canberra has the highest share of EE homes, setting the standard for sustainable housing supply and the national trial of energy ratings for existing homes (Table 3).

Middle income buyers are driving the shift: Sustainable living is not for Australia’s elite postcodes. Some of the strongest demand and price premiums are coming from regional and outer-metro suburbs, where middle-income households are driving the change for lower cost, sustainable living. (Table 4).

Domain’s Chief of Research and Economics, Dr. Nicola Powell said, “Energy efficient homes are no longer an ethical choice – they’re a smart financial choice, particularly given rising energy prices and mounting cost of living pressures.

“Features like solar panels and energy smart designs can add tens, even hundreds of thousands to a home’s value, and while new developments have made energy-efficient homes more accessible, there’s still more work to be done, especially when it comes to upgrading existing homes and reimagining sustainable living in our major cities.

“Through greater education, targeted incentives, and strong policies, like we’ve seen in the ACT, we can help more Australians enjoy healthier, more cost efficient and sustainable homes.”

Read the full Domain Sustainability in Property 2025 report here.

INDEPENDENT NEWS IS IMPORTANT.

Enjoy reading Eco Voice? Please help us by purchasing a GIFT Voucher or send one to a friend and encourage people to purchase trees or seeds via The Native Shop – www.nativeshop.com.au