How to sell your home in Perth for $100,000 more than your neighbour
Middle-income households are leading the way in embracing energy-efficient features, fuelling growing demand for green homes in Perth.
Domain’s latest Sustainability in Property report revealed the striking trend against a cost-of-living crisis with green homes proving easier to sell.
Green homes in Alkimos are attracting a price premium. Credit: Heather McNeill
Data revealed energy-efficient homes received 16 per cent more attention from buyers nationwide, resulting in quicker sales compared to their non-energy-efficient counterparts.
Como, which has a median house value of $1.25 million, attracted the biggest energy-efficient price premium in Australia at 53 per cent. It is followed in WA by houses in the newer estates in Aveley (19.5 per cent) and Alkimos (19 per cent).
Overall, the supply of “green” homes has increased from 36.5 per cent in 2015 to just over 50 per cent of all properties listed for sale.
Home buyers on a budget who wanted more sustainable choices could buy a home in Waikiki where an energy-efficient home was a touch cheaper than a non-energy-efficient home.
Domain’s chief of research and economics, Nicola Powell, said the performance of green homes was likely driven by two major factors: an increasing number of environmentally conscious buyers, and the lifestyle benefits associated with green properties.
“Features like cross-ventilation, north-facing orientation, heat recovery ventilation, and solar panels not only contribute to environmental sustainability but also offer practical advantages, potentially reducing maintenance costs for occupants,” she said.
“Both lead to the increasing appeal of energy-efficient properties.”
The other standout trend was middle-income families leading the charge in adopting energy-efficient features.
With average and median household incomes in Australia about $121,000 and $93,000, respectively, Powell said the report suggested a strong willingness among middle-income households to invest in energy-efficient features.
She said as energy-efficient properties typically commanded higher prices, one might anticipate a proportionate representation of higher-income areas with suburbs featuring the highest energy-efficient house price premiums.
“However, the report reveals a notable over-representation of middle-income households in most of these suburbs,” Powell said.
“There could be several factors at play here.
“Middle-income households may be investing in energy-efficient features to lower their household running costs and align with their personal values of environmental consciousness.
“Another explanation could be the prevalence of new-built homes in these areas with energy-efficient features included.”
Green Building Council Australia chief executive Davina Rooney said there was a natural surge in demand as Australians became increasingly aware of the health, environmental, and cost benefits of living in more sustainable and energy-efficient homes.
“This shift is particularly welcome, given that residential properties contribute to 10 per cent of Australia’s carbon emissions,” she said.
“It’s encouraging to see this growing preference, which promises to reshape our housing market.”