Source: Cotality
Energy efficiency in housing is something I have experienced personally, professionally and increasingly, as part of Australia’s national housing conversation.
When we rebuilt our own home to a high standard of energy performance, I saw first-hand what good design can deliver. A home that is quieter, holds its temperature, is healthier, more comfortable and less expensive to run. Time spent in Europe reinforced the same point.
In many countries, people expect their homes to perform and for energy ratings to be visible. They expect comfort, efficiency and running costs to be part of the ordinary conversation when a property is bought, sold or leased.
In Australia, we have too often treated those things as optional extras. That must change.
This has also been central to my message internationally. At the United Nations in New York this year, I spoke about the global housing crisis, arguing that one of the great mistakes in housing policy is to separate supply, affordability, energy performance and resilience into different conversations. They are not separate. The homes we build, upgrade, sell and manage today will determine the cost, comfort and sustainability of Australian households for decades.
For the real estate profession, this presents both an obligation and an opportunity.
Rather than waiting for energy efficiency policy changes to arrive and scrambling to respond, it is the Real Estate Institute of Australia’s (REIA) view that the real estate profession should be among the leaders.
Agents have always helped consumers make sense of property. We explain location, land, condition, presentation, comparable sales, rental yield, buyer sentiment and risk. Energy performance should be no different. It’s another essential element of the sought-after professional advice we provide.
A home’s orientation, insulation, glazing, heating, cooling, solar, draught sealing and hot water systems are not technical side issues. They’re integral to how a property feels, what it costs to live in and, increasingly, how the market values it.
There is a growing commercial case that energy-efficient features have a positive influence on buyer engagement and price. Agents who understand this impact will be better placed to advise vendors, support purchasers and property investors, and identify value that might otherwise be missed.
But this transition cannot be designed in a policy vacuum. It must work at the kitchen table, at the listing presentation, at the open for inspection, in the property management office and in the negotiation between buyer and seller.
For that to happen, the industry and agents need the appropriate tools, training, confidence and reliable information, not another layer of unclear compliance dropped onto an already complex transaction process.
This report is intended to move the needle in this evolution. It examines the condition of Australia's housing stock, the policy changes underway and the growing body of evidence linking energy performance to household costs, comfort and property value. It also draws on the experiences of agents already engaging with these conversations and identifies the practical steps needed to support successful implementation across the industry.
The REIA’s immediate responsibility is to ensure our members are active contributors to the design and delivery of this transition. We want, and will benefit from, a system that improves consumer information, supports better housing outcomes, recognises the realities of implementation and positions real estate professionals as trusted advisers in a changing market.
Energy performance is becoming a non-negotiable part of residential property transactions.?
Governments are progressing home energy rating frameworks, lenders are paying closer attention to housing efficiency, and buyers and renters are asking more questions about running costs, comfort and energy use. Information that was once difficult to access is becoming more visible across the property market.?
Home performance is no longer a niche or specialist topic. It is another factor influencing how homes are marketed, compared, valued and managed.?
REIA and Cotality have collaborated on this report to help the industry understand what is changing, what it means in practice, and where opportunities and challenges are likely to emerge.
The report examines the current policy and disclosure landscape, and the evidence linking home performance to property value, consumer behaviour and investment decisions. It also considers the practical realities of implementation, including ratings systems, data availability, technology, industry capability and market readiness.
As trusted advisers to buyers and sellers at point of lease or sale, real estate agents are uniquely positioned as the front line of the energy transition. Agents can effectively communicate a property’s genuine points of difference, including whether it has solar generation capability, system size and battery storage capacity. This is part of the agent’s fiduciary and due diligence responsibility towards their clients, which guards against misrepresentation and promotes a better understanding of the associated benefits.
Drawing on research, market analysis, case studies and consultation with industry leaders, the report sets out practical actions for industry bodies, agencies and property professionals as home performance becomes an established part of Australia's residential property market.
Home energy performance is becoming an increasingly important part of residential property transactions, influencing how homes are marketed, compared and assessed.
Not only are buyers and renters paying closer attention to running costs, comfort, and energy use, but governments are advancing the Home Energy Rating Disclosure Framework (Disclosure), lenders are moving towards incorporating energy data into lending decisions, and new assessment tools are making home performance information more accessible.?
Most of Australia's existing housing stock was built before modern energy efficiency standards were introduced. As a result, there is a substantial performance gap between newer and more established homes, and consumers often have little information about how the properties they buy, sell or rent are likely to perform.
For most buyers, renters and investors, home performance is about more than sustainability. ?It affects comfort and the ongoing running costs of owning or occupying a home. Research from Australia and overseas shows those factors are increasingly reflected in buyer behaviour, with higher-performing homes attracting stronger demand and price premiums in many markets.
Consumer expectations and policy reform are making home performance another consideration in residential property transactions. The case studies drawn upon in this report show there is an increasing expectation for more transparency about a home’s performance, creating new opportunities for property professionals to explain to clients what that means in practical and financial terms. Will this property be more comfortable, cheaper to run and, ultimately, more valuable?
Successful implementation of more rigorous disclosure requirements will depend on industry capability, consumer education, accessible data, practical assessment pathways and technology that integrates energy information into the systems practitioners already use.
Property professionals do not need to become technical experts, but they do need the confidence to explain home performance in practical language. Those who build that capability early will be better placed to advise clients, communicate value and respond to changing market expectations.
This means that you get the 'real' valuation of your real estate with no hidden agendas.
