The Australian regions outperforming the capitals for energy efficient housing
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The Australian regions outperforming the capitals for energy efficient housing

An unlikely Australian region is leading the energy efficiency charge for residential construction, while one major capital lags behind

By KANEBRIDGE NEWS
Mon, Dec 9, 2024 11:01amGrey Clock 2 min

New Australian homes are far more energy efficient than those built previously, a new report from CoreLogic has shown. The report, Amped Up: How energy efficient are Australian

Homes?’ has taken data from CoreLogic and checked it against metrics generated by the  CSIRO’s RapidRate™ product to reveal that houses built after 2010 achieved a media star rating of 5.9 out of a possible 10. This compares with a median rating of 2.8 stars for homes built prior to 2010.

The most energy efficient region overall was the ACT, with a median star rating of 6.1. Within the ACT, the region of Molonglo had the highest rating. Positioned halfway between Yarralumla and Stromlo Observatory, Molonglo is the newest district in the ACT and is still under development. It is the only region nationally with a star rating of 6 or above for all dwellings.

The ACT dominated the top 30 list of most energy efficient suburbs. In contrast, Sydney and Hobart were notably absent from the top 30 list, although the report noted that there was a high level of variation across both cities. Sydney and Hobart are also the oldest cities in the country, with some housing stock dating back to the early 19th century. The report noted that demand for heating was also strongest in Hobart, which also had the lowest dwelling completion to population ratio. Heritage restrictions were also identified as a factor.

At a micro level, the Sydney suburbs of Blacktown-North and Bringelly-Green Valley recorded the highest ratings for NSW, with a median of 5.2 stars. In Victoria, the Surf Coast-Bellarine peninsula performed well, with the suburbs of Armstrong Creek, Curlewis and Mount Duneed all showing a median rating of 6 stars or higher.

Given Australian housing accounts for 24 percent of electricity use and 10 percent of carbon emissions, CoreLogic’s Head of Banking & Finance Solutions Tom Coad said it was vital that standards set in the National Construction Code were adhered to.

“The significant difference in energy efficiency between relatively modern homes and older homes can largely be attributed to changes in the National Construction Code

which has progressively placed more emphasis on energy efficiency requirements for newly built homes,” Mr Coad said.

“The Coalition’s recent push to pause the National Construction Code for 10 years flies in the face of Australia’s commitments to reduce carbon emissions.”

“Policymakers should be incentivising the construction of energy efficient buildings, not slamming the breaks.”

The report was compiled using the Nationwide House Energy Rating Scheme (NatHERS) star rating system. Research director at CoreLogic, Tim Lawless, said it was important to continue to monitor the energy efficiency of housing construction.

“What gets measured gets done,” he said. “As standards for energy efficient design and construction rise, it’s also becoming more important to measure energy resilience in

our housing stock.

“Minimum energy efficiency standards for new builds will continue to be important in supporting Australia’s greenhouse gas reduction targets, but there is likely to be

increasing focus and incentives on established housing where most of Australia’s housing stock was built prior to recent minimum standards.”



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The spring property market is shaping up as the most active in recent memory, according to property experts Two Red Shoes.

Mortgage brokers Rebecca Jarrett-Dalton and Brett Sutton point to a potent mix of pent-up buyer demand, robust seller confidence and the First Home Guarantee Scheme as catalysts for a sustained run.

“We’re seeing an unprecedented level of activity, with high auction numbers already a clear indicator of the market’s trajectory,” said Sutton. “Last week, Sydney saw its second-highest number of auctions for the year. This kind of volume, even before the new First Home Guarantee Scheme (FHGS) changes take effect, signals a powerful market run.”

Rebecca Jarrett-Dalton added a note of caution. “While inquiries are at an all-time high, the big question is whether we will have enough stock to meet this demand. The market is incredibly hot, and this could lead to a highly competitive environment for buyers, with many homes selling for hundreds of thousands above their reserve.”

“With listings not keeping pace with buyer demand, buyers are needing to compromise faster and bid harder.”

Two Red Shoes identifies several spring trends. The First Home Guarantee Scheme is expected to unlock a wave of first-time buyers by enabling eligible purchasers to enter with deposits as low as 5 per cent. The firm notes this supports entry and reduces rent leakage, but it is a demand-side fix that risks pushing prices higher around the relevant caps.

Buyer behaviour is shifting toward flexibility. With competition intense, purchasers are prioritising what they can afford over ideal suburb or land size. Two Red Shoes expects the common first-home target price to rise to between $1 and $1.2 million over the next six months.

Affordable corridors are drawing attention. The team highlights Hawkesbury, Claremont Meadows and growth areas such as Austral, with Glenbrook in the Lower Blue Mountains posting standout results. Preliminary Sydney auction clearance rates are holding above 70 per cent despite increased listings, underscoring the depth of demand.

The heat is not without friction. Reports of gazumping have risen, including instances where contract statements were withheld while agents continued to receive offers, reflecting the pressure on buyers in fast-moving campaigns.

Rates are steady, yet some banks are quietly trimming variable and fixed products. Many borrowers are maintaining higher repayments to accelerate principal reduction. “We’re also seeing a strong trend in rent-vesting, where owner-occupiers are investing in a property with the eventual goal of moving into it,” said Jarrett-Dalton.

“This is a smart strategy for safeguarding one’s future in this competitive market, where all signs point to an exceptionally busy and action-packed season.”

Two Red Shoes expects momentum to carry through the holiday period and into the new year, with competition remaining elevated while stock lags demand.

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