Energy-efficient homes are no longer a niche preference but a mainstream priority for Australian home buyers, according to Domain’s Sustainability in Property Report 2025.
The report highlights a significant shift in the property market, with energy-efficient homes fetching substantial price premiums and commanding heightened buyer interest across all regions and budgets.
Over half of all houses sold in 2025 — 52.2 per cent — and nearly 40 per cent of units featured at least one energy-efficient element, such as solar panels or double-glazing, marking a dramatic increase compared to five years ago.
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.
Nationally, energy-efficient houses are selling for $118,000 more than their less sustainable counterparts — a 14.5 per cent uplift — with some suburbs seeing premiums as high as 75 per cent for homes with standout features.
Melbourne and Perth lead the way, with energy-efficient homes in Melbourne commanding up to a $197,000 premium and Perth homes seeing a $118,000 uplift.
The most sought-after energy-efficient features include north-facing orientation, solar panels, and double-glazing.
North-facing properties alone add an astonishing $375,500 to a home’s value nationally, while solar panels and double-glazing can boost prices by $140,000 and $145,000, respectively.
Listings for energy-efficient houses receive 13.8 per cent more views than standard homes, underscoring the growing appetite among buyers for sustainable living solutions.
The trend is not limited to affluent suburbs.
Middle-income households in regional and outer-metro areas are driving much of the change, seeking out lower-cost, sustainable living options.
The Australian Capital Territory, with its mandatory energy efficiency ratings and modern building standards, sets the benchmark for sustainable housing supply in the country.
In response to these findings, Domain has launched its Home Efficiency Hub, offering eco-friendly home tours and expert advice to help homeowners make their properties more sustainable.
The initiative aims to inspire and educate Australians about the benefits of energy-efficient living.
Dr Nicola Powell, Domain’s Chief of Research and Economics, commented: “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.”
She continued: “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.”
The message from the market is clear: sustainability is not just good for the planet — it is now a sound investment.
With buyers willing to pay significant premiums for energy-efficient features, the push for greener homes is reshaping Australia’s property landscape.
