Tech allows ultra-green homes to be built in just two months

An Australian construction giant is poised to build ultra-energy efficient homes in a matter of months after signing a joint venture with a green tech prefabricated wall manufacturer.

AVJennings recently launched a new collection of designer dwellings dubbed Stellar, which feature an innovative walling system from tech company Pro9.

Using the galvanised steel-frame and foam insulated product, the time it takes to construct a home can be cut to a fifth of what it is currently, meaning a dwelling could go up in just two months.

And the finished product can achieve at least an eight-star energy efficiency rating – well above the current minimum of six stars and ahead of the boosted seven-star requirement that comes into effect from 2024.

AVJennings has signed a joint venture with Pro9 to establish a manufacturing hub in Australia, capable of producing more than 1000 homes a year.

“The fact that Pro9 can be implemented directly into our existing product range to elevate the offering is ground-breaking,” AVJennings chief executive officer Phil Kearns said.

“Since introducing the technology into three homes in our Evergreen community in New South Wales 2021, we can see how much it contributes to a home’s energy efficiency and comfort.”

AVJennings is the first developer to bring the Pro9 technology to market in Australia, Mr Kearns said.

“We recognise the importance of achieving higher quality, better insulated and more durable homes and for us to all reduce our carbon footprint.”

Mr Kearns said the partnership is “just the start” of what the company plans to roll out in the future.

Homebuyers are increasingly demanding green and sustainable features and most are willing to pay a premium for it, according to the most recent Property Seeker Report from realestate.com.au.

The largest survey of its kind, the research probes respondents on hundreds of questions relating to the home-buying journey and has found the vast majority are eager to go green.

The 2022 report found 81 per cent of homebuyers see sustainable features in a property being critical in their decision-making and 87 per cent are willing to pay extra for green features, from solar panels to efficient insultation.

The average premium those buyers are willing to pay is 15%, the report found.

Recent analysis by KPMG found the Green Building Council of Australia’s Green Star Homes not only benefit the environment, but owners are better off financially almost immediately, with savings outpacing initial upfront costs.

While the modelling shows a Green Star Home will increase typical loan repayments by up to $84 per month, the savings in energy costs are up to $140 per month.

“The results are particularly exciting as they show that the economics now align with the significant amenity uplift of a greener, more efficient and healthier home,” said Mark Spicer, KPMG’s partner of ESG advisory and assurance.

Australia’s housing crisis will not be solved by first-home buyer incentives or tax changes alone, with leading property figures warning governments must tackle supply constraints if affordability is to improve.

Speaking at the Kanebridge Quarterly Property Leadership Summit in Sydney last week, expert project marketing specialist Sam Elbanna, property investor and fund manager Paul Miron and property consultant Karla McNeice said that a lack of housing supply remained the central issue facing the market.

Elbanna, Director of CPM Realty with more than 30 years’ experience in project sales, argued that successive governments had focused too heavily on stimulating demand rather than addressing the barriers preventing new housing from being delivered.

“The misconception is that politicians think the way to solve the housing crisis is to drive demand,” he said.

“The reality is that’s not the way. This is a supply-side problem, and it needs to be solved on the supply side.”

Drawing on his experience in project sales, Elbanna said policies designed to help first-home buyers often had unintended consequences, pointing to previous grants that ultimately flowed through to higher property prices.

Instead, he said developers were facing increasing red tape, approval delays and rising costs, which were discouraging new housing supply.

“In the absence of stock, demand exceeds supply,” he said.

Miron, a Co-Founder and Fund Manager of Msquared Capital, said the housing debate had become overly focused on tax policy while overlooking broader structural issues.

He argued that affordability challenges stemmed from a combination of factors, including planning constraints, supply shortages, migration levels and interest rates.

“No-one can be 100 per cent certain on the real reason for property prices is going up,” he said.

“The reason why property prices are higher is a combination of interest rates, lack of supply, migration, vacancy rates and maybe taxes play a role.”

Miron was critical of recent federal housing policy changes, warning they could reduce the number of new homes being built and further constrain supply that was even highlighted in the budget.

He also highlighted the importance of the property sector to the broader economy, noting that residential real estate and related industries employed more than one million Australians.

McNeice, who advises developers on sales strategy and market intelligence, said understanding buyers had become increasingly important as affordability pressures intensified.

While affordability remained a major consideration, she said today’s buyers were focused on value rather than simply price.

“People are looking for value for money,” she said.

She said buyers were increasingly evaluating factors such as transport connections, walkability, nearby amenities and flexible living spaces that could accommodate changing family needs.

“What infrastructure is going on? Can I walk to the shops? Can I meet people at the local cafe?” she said.

The panel also discussed the mounting pressures facing developers, with Elbanna arguing that many projects become financially unviable from the moment a site is purchased.

“The viability of a development happens at the moment the site is bought,” he said.

He said rising construction costs, higher interest rates and overly optimistic feasibility assumptions had left some developers exposed as market conditions changed.

While acknowledging the growing number of smaller and first-time developers entering the market, Elbanna said property development required expertise across finance, construction, marketing and legal disciplines.

“It is actually a business that requires a level of expertise,” he said.

Looking ahead, the panel agreed opportunities remained in the market despite current challenges.

Miron said property should continue to be viewed as a long-term investment and cautioned against trying to time short-term market movements.

McNeice said success would increasingly depend on identifying projects that genuinely met changing buyer expectations.

Elbanna said affordable housing remained achievable, but developers needed to deliver more than just homes.

“We can provide affordable housing in this country,” he said.

“But we’ve got to wrap that affordable housing with the things that people want.”

As Australia’s housing affordability debate intensifies, the panellists agreed on one point: without a meaningful increase in housing supply, demand-side measures alone are unlikely to solve the nation’s property challenges.

Tech allows ultra-green homes to be built in just two months

The breakthrough comes as research shows homebuyers are willing to pay more for sustainable features

Australia’s housing affordability crisis is being fuelled by chronic undersupply, planning delays and rising development costs, as politicians continue to focus on the wrong solutions.