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Resale Value of Energy Efficient Homes

Updated: Jul 8, 2020

There is currently no national scheme for disclosing the energy efficiency rating of a home. One currently exists in the ACT, and research has shown that houses which can show that they have a higher energy score can expect a higher sale price by 2 – 10%.


The argument for energy efficient homes is easy - lower running costs, higher comfort, better for the environment, the list goes on. However, an additional argument for energy efficient homes has come to light – resale value.


While there is no current national requirement for home owners to disclose the energy efficiency score of their home at the time of sale, this has been the case in Europe for the last ten years and the case in the ACT for the last 7 years.



A recent study undertaken in the ACT has shown that 85% of homes with a higher energy rating will generally receive a premium resale value between 2.4 – 9.4%. When compared to a 3 star home (the current standard under the NatHERS Scheme) it was shown that a six star house would receive a higher resale price of approximately 2.4%, with a 9.4% increase for a 7 star home. As the medium house price of the ACT is $773,635 this can equate to a potential price increase of between $18,500 - $72,721.



Additionally, this price premium represents a strong return on investment (ROI) for anyone building/renovating a home. The added cost of building an energy efficient home is often cited as the reason not to bother, with peak housing industry organisations often quoting figures of around $10,000. A study undertaken back in 2009 showed that a 7.2 star home provided the best ROI with a payback of seven years and an internal rate of return of 18%.


It is no secret that due to Covid-19 house sales are expected to fall, and due to market conditions, investors and buyers will inevitably become more savvy. Help your home sell for the premium by including an energy efficiency report in the sale package. Highlighting aspects such as solar PV systems, efficient hot water systems and strong levels of insulation in the walls and ceilings will certainly help secure a better price for your home. RC Energy can undertake an energy efficiency audit of your home and provide a NatHERS Star rating to help give your home the competitive edge!

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