Sustainable properties are expected to continue to grow in popularity among both homeowners and investors in 2025.

A significantly greater number of buyers are willing to pay a premium for housing with features that will ultimately save them money.

South Australia is leading the nation in terms of housing with solar panels.

As of September, 2024, more than 50 per cent of South Australian homes had rooftop installations.

That is well ahead of the national average of 36.05 per cent.

But sustainable housing is about much more than just solar panels.

It extends to a vast range of initiatives including:

  • solar batteries
  • solar hot water systems
  • energy saving electricity meters
  • EV charging stations
  • energy efficient appliances
  • LED lighting
  • sustainable building materials
  • improved insulation
  • double-glazed windows
  • rainwater harvesting systems
  • water-saving fixtures

Here are the reasons why sustainable properties are booming and what it means for both homeowners and investors.

Rising awareness of environmental issues

Australians are more aware than ever about environmental issues and the desire to reduce our carbon footprint.

Governments, activists and the media have pushed the message which has been embraced by the corporate world and industries at large.

There is no doubt Australia has its fare share of natural disasters and challenges including extreme weather events such as storms and floods, heatwaves, bushfires and droughts.

The effect has been twofold.

  • More homeowners are motivated to reduce their carbon footprint by installing solar panels, rainwater tanks and other energy-efficient products.
  • Investors view sustainable properties as part of a broader commitment to ESG (environmental, social and governance) principles, aligning their portfolios with global sustainability goals.

Financial incentives

The financial incentives of eco-friendly housing make them too good to ignore.

That holds true whether you are a card-carrying member of the Australian Greens or a sceptical curmudgeon who is adamant it was just as hot in the 1960s.

What cannot be disputed is that energy costs continue to rise sharply.

Energy-efficient homes with solar panels, smart meters, smart insulation and energy-efficient appliances reduce power bills.

Low-flow fixtures and water-saving technologies such as greywater recycling cut water bills. 

Who wouldn’t want that?

In addition, federal, state and local governments offer a wide range of sustainability incentives.

Changing market demand

Today’s buyers and renters are likely to be a generation younger than when you bought your house.

Millennials were born between 1981-96. That makes them between 28 and 43 today.

More than half of them already own a home.

According to the Commonwealth Bank, in 2023, millennials were the most active property investors, comprising 46 per cent of the market.

The point is that Millennials and Gen Z are the generations most invested in eco-friendly housing and willing to pay a premium for it.

The trend even extends to commercial real estate where companies are leasing buildings with higher sustainability ratings to meet their ESG targets.

New hotels are built with green features and elaborate energy monitoring systems designed to keep expenses to a minimum.

Both are rewarded with higher occupancy rates making them significantly more profitable.

Technological advancements in building sustainable properties 

Innovation in green construction and technology is a boom industry and continues to grow.

This includes:

Smart home technologies – devices such as energy-monitoring systems with the ability to utilise cheaper tariffs, automated lighting, heating and cooling make properties more efficient and attractive.

Sustainable materials – builders are increasingly using recycled steel, plastic and insulation or renewable materials, reducing the environmental impact of construction.

Optimising design – thoughtfully designed homes use natural ventilation, sunlight and vegetation for temperature regulation to lower their energy usage.

Regulatory changes

Changes to the National Construction Code address energy efficiency, thermal performance, energy usage, water efficiency and use with an objective to:

  • reduce energy consumption and energy peak demand
  • reduce greenhouse gas emissions
  • improve occupant health and amenity

At the same time, government initiatives aim to reduce emissions across multiple sectors including real estate, encouraging developers and investors to prioritise sustainability.

These regulatory changes invite investors to future-proof their portfolios by aligning with contemporary standards.

Resilience to extreme weather

Besides reducing power bills, eco-friendly housing involve features that offer better protection against extreme temperatures.

Double-glazed windows and shutters are an obvious way to keep out the summer heat.

But the strategic planting of trees, shrubs and plants in and around your home can help naturally regulate temperatures indoors.

In addition, some insurance companies are offering lower premiums to insure eco-friendly homes.

Aligning your investment with your values

Whether you are in the market as a homeowner or investor, many buyers are choosing eco-friendly housing because it aligns with their personal values.

Green homes contribute to healthier, more sustainable communities, giving homeowners a sense of personal satisfaction having made a societal contribution.

Investors are increasingly looking to align their portfolios with their environmental values, making sustainable real estate a natural choice.

How to capitalise

Eco-friendly housing isn’t just a fad, it’s a revolution that helps reduce the impact on the environment.

Critically, it also implements a raft of energy-saving, money-saving features into housing that makes it negligent to dismiss.

For established homeowners, this makes it worthwhile considering upgrades to your property incorporating green technologies to reduce costs and increase market appeal.

A number of government incentives to offset upgrade expenses are on offer.

For investors, properties with sustainability features or ones with the potential to upgrade should be more attractive in terms of future yields and resale value. 

Get advice now

Whether you intend buying property as an owner-occupier or investor, there is so much to consider.

The growing popularity and rise in demand for eco-friendly housing and sustainability features adds yet another layer of complexity to that decision.

That’s why a call to Calder Finance Broking is a great idea for two reasons.

We have years of experience in the lending industry, having built strong and trusted relationships with a multitude of lenders for your benefit.

We can help you secure the very best loan with premium features tailored specifically to your personal needs.

If a better deal arises, you will be the first to know, giving you the opportunity to refinance.

In conjunction with Calder Wealth Management, we can advise you on the best ways to integrate sustainable investments into your wealth strategy.

CWM are financial planning experts who have been growing and safeguarding the wealth of multiple generations of South Australian families for more than half a century.

Contact Calder Finance today to discuss all of your financial needs and mortgage requirements and ask for expert advice on investing in sustainable properties.

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on Calder Wealth Management’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Calder specialises in wealth management with a focus on advice, investment, sustainability, insurance and finance.

Written by David Titley from Calder Finance Broking, for more information please visit the Calder Finance website. Please note that Calder Finance Broking Pty Ltd is a Corporate Credit Representative of BLSSA Pty Ltd ABN 69 117 651 760 ACL 391237.

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