With banks increasingly offering preferential ‘green’ lending terms and potential energy cost savings in the thousands, agents can leverage energy efficiency ratings to differentiate properties in a competitive market.
A new CoreLogic analysis released today shows that homes built in 2010 or later achieved a median energy efficiency rating of 5.9 stars out of 10, compared to just 2.8 stars for pre-2010 homes.
Speaking exclusively to Elite Agent, CoreLogic’s Head of Banking and Finance Solutions, Tom Coad, says the significant efficiency gap opens up new opportunities for agents working with both buyers and sellers.
“Improving the energy efficiency of a home has the potential to save homeowners and renters hundreds to thousands of dollars per year,” he explains.
“Some improvements, such as the installation of solar with battery, have the ability to almost completely offset all energy costs.”
The ‘Amped Up’ report, released in December 2024, reveals that the Australian Capital Territory leads the nation in energy efficiency.
The region of Molonglo achieved the highest median star rating at 6.1—the only region nationally with a median rating of 6 or higher across all dwellings.
While Sydney and Hobart were notably absent from the top 30 most energy-efficient regions nationally, both cities showed strong performance in newer builds.
Sydney’s Blacktown-North and Bringelly-Green Valley areas achieved median ratings of 5.2, while Hobart’s post-2010 builds reached 6.3 stars.
For agents working with established properties, Mr Coad points to emerging opportunities in the lending sector.
“Lenders are increasingly focusing on established properties, and many are leveraging the Home Energy Upgrade Fund administered by the Clean Energy Finance Corporation,” he says.
“To date, over $345m has been allocated to lenders to support this upgrade activity.”
The banking sector’s response includes major banks and specialised non-mortgage lenders offering specific energy upgrade financing options, many of which are developing customer-facing tools and calculators.
Looking ahead, Mr Coad predicts energy efficiency will become an increasingly important factor in property transactions.
“We expect energy efficiency and running costs to play significantly into the home buying experience over the next 12-18 months as understanding of what it means becomes widespread.”
While the current report studies standalone dwellings, CoreLogic plans to expand its analysis to include apartments.
“We expect to make progress on this throughout 2025 along with work that will enable a carbon emissions estimate to also become available,” Mr Coad adds.
The findings are based on metrics generated from CSIRO’s RapidRate™ product and CoreLogic data inputs, providing estimated ratings aligned with the Nationwide House Energy Rating Scheme (NatHERS).
Key takeaways for agents:
- Post-2010 homes achieve median 5.9-star rating vs 2.8 stars for older properties
- Growing availability of ‘green’ lending options for both new and established homes
- Potential energy cost savings create new selling points for upgraded properties
- Regional variations offer location-specific talking points for client discussions
