Sustainable living no longer niche as homebuyers prioritise energy-smart features
Homes with sustainable features are attracting higher prices and growing buyer interest across Australia, a new report from property listings platform Domain has revealed.
Data in Domain’s Sustainability in Property Report 2025 shows that homes with energy-efficient (EE) features are selling for an average of $118,000 more than their non-EE counterparts — a 14.5% increase nationally. In Melbourne, the price premium rises to 23.8% ($197,000), while in Perth, it reaches 16.1% ($118,000).
Specific features are linked to even greater value increases. North-facing homes are the most sought-after, adding an average of $375,500 to property prices nationwide. Homes equipped with solar panels or double-glazed windows also perform well, attracting $140,000 and $145,000 in added value respectively.
Listings for EE houses receive 13.8% more views than standard homes, while EE units see a 6.5% rise in interest, indicating strong demand for sustainable design features such as solar energy, insulation, and smart orientation.
The report suggests that sustainable living is no longer a niche market. More than half (52.2%) of houses and nearly 40% of units sold in 2025 included at least one energy-efficient feature, a notable increase over the past five years.
Canberra leads in this space, supported by mandatory energy-efficiency ratings and newer building standards. The ACT now has the largest share of EE homes nationally, also serving as the pilot site for the country’s energy ratings program for existing housing.
Importantly, the rise in energy-efficient property ownership is being driven by middle-income households in regional and outer suburban areas, challenging the perception that sustainable homes are only for high-end buyers.
“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,” said Nicola Powell (pictured above), Domain’s chief of research and economics.
“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.
“Through greater education, targeted incentives, and strong policies, like we’ve seen in the ACT, we can help more Australians enjoy healthier, more cost efficient and sustainable homes.”
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