New residential buildings will need to attain 7 star thermal performance ratings under a new BASIX policy announced by the NSW Government today.
Treasurer and Minister for Energy Matt Kean said the Sustainable Buildings SEPP is designed to reduce household energy bills while delivering more comfortable homes to residents.
“These new standards will drive more energy-efficient homes from Bondi to Broken Hill and beyond, with better design, better insulation and more sunlight,” Mr Kean said.
“People living in new high-rise apartments in suburban Sydney will save up to $150 a year, new Western Sydney homeowners will see a reduction of $720 a year, and our regional communities as much as $970 a year.”
The announcement represents an update to the Building Sustainability Index (BASIX) tool, increasing the average star rating from 5.5 to 7 and will come into effect from October 2023. The new ratings will also apply to renovations greater than $50,000.
Minister for Planning and Minister for Homes Anthony Roberts said the announcement would also impact the construction of commercial buildings.
“We recognise the importance of good design and sustainability in planning, that’s why we are progressing updates to our online Building Sustainability Index (BASIX) tool and introducing sustainability requirements for new commercial buildings,” Mr Roberts said. “We need to ensure the places we live, work and stay in are more comfortable – all while we save people money on their power bills and contribute to our net zero target.”
The Department of Planning will also be including an index to measure embodied emissions of construction materials.
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
RMIT expert says a conflation of factors is making the property market hard than ever to predict
A leading property academic has described navigating the current Australian housing market ‘like steering a ship through a thick fog while trying to avoid obstacles’.
Lecturer in RMIT’s School of Property Construction and Project Management Dr Woon-Weng Wong said the combination of consecutive interest rate rises aimed at combating high inflation, higher property prices during the pandemic and cost of living pressures such as the end of the fuel excise that occurred this week made it increasingly difficult for those looking to enter or upgrade to find the right path.
“Property prices grew by approximately 25 percent over the pandemic so it’s unsurprising that much of that growth ultimately proved unsustainable and the market is now correcting itself,” Dr Wong says. “Despite the recent softening, the market is still significantly above its long-term trend and there are substantial headwinds in the coming months. Headline inflation is still red hot, and the central bank won’t back down until it reins in these spiralling prices.”
This should be enough to give anyone considering entering the market pause, he says.
“While falling house prices may seem like an ideal situation for those looking to buy, once the high interest rates, taxes and other expenses are considered, the true costs of owning the property are much higher,” Dr Wong says.
“People also must consider time lags in the rate hikes, which many are yet to feel to brunt of. It can take anywhere from 6 to 24 months before an initial change in interest rates eventually flows on to the rest of the economy, so current mortgage holders and prospective home buyers need to take this into account.”