While data suggests a growing interest in eco-friendly apartments and luxury homes in markets like the UK and US, sustainability remains more of a ‘nice-to-have’ rather than a must-have for high-end buyers in Australia. For most, location, price, and lifestyle factors ultimately drive purchasing decisions.
The Green Building Council of Australia (GBCA) has launched Green Star Apartments, a sustainability rating aimed at helping buyers, renters, and financiers identify eco-friendly properties.
The initiative follows research showing that Green Star-certified apartments can provide $111,000 in financial benefits over 30 years through cheaper loans, lower energy costs, and stronger capital growth.
“The rating system we’re launching will make it easier for developers to create generation-defining homes,” said GBCA CEO Davina Rooney. “It will help more Australians get their foot in the door in a way which not only saves them money, now and into the future, but also reduces our carbon footprint.”
Despite the desire to live in a sustainable home, a survey by Gateway Bank shows Australian buyers are predominantly driven by pricing considerations when looking to buy a property.
Energy-efficient homes are selling faster and attracting more interest, according to Domain’s second annual Sustainability in Property Report last year. The report reveals that green homes receive 16% more listing views and spend 4% fewer days on the market, signalling a growing demand for sustainable features despite rising cost-of-living pressures.
Surprisingly, middle-income households are at the forefront of this shift, leading the charge in adopting energy-efficient home features.
Domain’s Chief of Research and Economics, Dr Nicola Powell, attributes this trend to a mix of environmental consciousness and financial benefits.
“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 explains.
Luxury buyers in Australia: ‘Sustainability is a nice to have, not a must-have’
While eco-friendly features are becoming more common in new developments, high-end buyers in Australia are not prioritising sustainability, according to Simon Cohen, founder of buyer’s agency Cohen Handler.
“We haven’t seen that shift to sustainability or any of that sort of stuff quite yet in primary residences,” Simon said. “People love technology and features like home automation, but no one is asking for energy efficiency or solar power in their brief.”
When asked whether buyers were interested in retrofitting older homes to be more sustainable, Simon even more direct: “Definitely not.”
He suggested that while sustainability may play a bigger role in certain new developments, it has yet to become a priority for individual buyers, particularly in Sydney’s prestige market.
International trends: buyers embrace sustainability at the top end
While Australian luxury buyers may not be driving demand for sustainable homes, high-net-worth individuals overseas are increasingly prioritising eco-conscious properties.
In London, entrepreneur Pelham Olive is transforming a 266-year-old Georgian townhouse in Soho Square into a BREEAM-certified green building. Despite the challenges of working within conservation restrictions, Olive sees the project as an opportunity to prove that heritage properties can be both luxurious and sustainable.
“I want it to be an exemplar, to show that it can be done,” he said.
Meanwhile, in the US, developers like Blue Heron are redefining luxury real estate with properties like Vegas Modern 001, a solar-powered, tech-driven estate that doubles as a mini power station. In Malibu, developer MariSol has spent the last decade building 100% electric, renewable, and clean-energy homes, with demand growing among buyers willing to pay a premium for low-carbon materials, energy efficiency, and toxin-free interiors.
According to Caryn Black, co-founder of B&B Luxury Properties in Pennsylvania, sustainability isn’t just about eco-consciousness, it’s also about health and well-being.
“Well-being is fast becoming a priority concern,” Caryn said.
“Sure, people get a nice feeling from knowing their house is insulated with hemp, but the knowledge that some chemical-laden foam concoction isn’t lurking behind their walls makes them much happier.”
What does this mean for real estate agents?
With sustainability becoming a bigger focus globally, Australian agents may need to stay ahead of the curve – especially as younger buyers and investors start to prioritise lower operating costs, eco-certifications, and future-proofed properties.
While luxury buyers in Australia remain indifferent, trends in the UK and US suggest a shift at the top end of the market, particularly when it comes to wellness, energy efficiency, and long-term cost savings.
Real estate professionals should be prepared to educate buyers on sustainable features, highlight the benefits of eco-friendly options, and anticipate growing demand for sustainable homes in the coming years.
The question isn’t if sustainability will become a key selling point, it’s when.
