Are Green Homes More Valuable?
Going green isn't a passing lifestyle trend. There's a growing need for sustainable and eco-friendly housing as Aussies become even more environmentally conscious. In 2025, over half of all houses sold had energy-efficient elements.
These energy-efficient homes, also known as green homes, don't come cheap. There's a premium when buying green homes or houses with eco-friendly amenities. If you're thinking about buying or building your own green home in Australia, here's what you need to know:
Do green homes cost more than regular houses?
The short answer is yes. The costs vary depending on location and the type of green features included in the property, but generally, green homes are more expensive than standard houses.
The cost to build a green home in Australia is between $620 and $3,900 or more per square metre, depending on the size, layout, and amenities. This is excluding permits, taxes, and landscaping.
Expect a premium when buying a green home, as well. According to Domain's Sustainability Report 2025, energy-efficient houses sold for 14.5% or $118,000 more than standard ones. Meanwhile, energy-efficient units sold for 12% or $75,000 more than regular units.
Price Difference: Green Properties vs Non-Green Properties
The green home premium varies based on where the property is. In Darwin, for example, the price difference between a green home and a standard one is only 7.8%, while in Melbourne it's significantly higher at 23.8%.
The table below shows the breakdown of prices for green homes and units in Australia.
|
|
Houses |
Units |
||
|
Location |
Price Difference in % |
Price Difference in $ |
Price Difference in % |
Price Difference in $ |
|
Sydney |
12.3% |
$180,000 |
12.9% |
$105,000 |
|
Melbourne |
23.8% |
$197,000 |
17.8% |
$95,000 |
|
Brisbane |
14.1% |
$120,000 |
9.8% |
$65,000 |
|
Adelaide |
12.1% |
$97,500 |
8.3% |
$45,000 |
|
Perth |
16.1% |
$118,000 |
19.2% |
$92,250 |
|
Canberra |
10.8% |
$94,000 |
17.6% |
$84,000 |
|
Hobart |
10.8% |
$78,000 |
- |
- |
|
Darwin |
7.8% |
$53,000 |
- |
- |
|
Combined Capitals |
11.0% |
$100,000 |
8.6% |
$56,000 |
|
Combined Regionals |
21.3% |
$135,000 |
30.8% |
$160,000 |
|
Australia |
14.5% |
$118,000 |
12.0% |
$75,000 |
Source: Sustainability Report 2025 (Domain)
In most areas, houses have higher green premiums compared to units. Green homes in Australia have a premium of around 10% to 20% across combined capitals and regionals. The higher price of green homes compared to units can be due to factors such as customisation and increasing demand.
Houses offer more opportunities for upgrades, making it easier to install energy-efficient features. Generally, homes with green features like solar panels, rainwater tanks, double-glazing windows, and internal and external insulation have higher values.
Having green features installed can be expensive, which in turn raises the base price of the green home. But because of these green features, owners can get long-term savings in their utility bills and other running costs.
Another reason green homes come with such a high premium is the high demand for them. The current stock of green homes may not be sufficient for the supply, driving prices even higher.
In combined regional areas, meanwhile, green units are worth an estimated 30.8% or $160,000 more compared to non-green units. This may be due to accessibility. Because units are usually more affordable than houses, homebuyers who want to go green but don't have the budget opt for green units instead.
It's interesting to note that the green premium has fluctuated in recent years, peaking in 2022 at 17.2% for green homes and declining in 2024 to 13.6%. This could be due to increasing demand and changes in housing supply.
What are the most valuable green home features?
The ideal green home features are affordable to install, practical, and most importantly, have immediate effects on your energy bill and running costs. The consistently most popular green home features include solar panels, passive design elements (such as house aspects), and double-glazed windows.
Value added by green home features
|
|
Double-glazed |
North-facing |
Solar |
|
Sydney |
$495,00 |
$615,000 |
$140,000 |
|
Melbourne |
$175,000 |
$473,500 |
$220,000 |
|
Brisbane |
- |
$352,750 |
$164,500 |
|
Adelaide |
- |
$218,000 |
$129,500 |
|
Perth |
- |
$368,000 |
$148,000 |
|
Canberra |
$107,500 |
-$250 |
$148,751 |
|
Hobart |
- |
- |
$100,000 |
|
Darwin |
- |
- |
$60,000 |
|
Combined Capitals |
$90,000 |
$440,000 |
$105,000 |
|
Combined Regionals |
$164,500 |
$196,000 |
$187,000 |
|
Australia |
$145,000 |
$375,500 |
$140,000 |
Source: Sustainability Report 2025 (Domain)
The value certain green home features add to a property varies depending on the type and location. Some features are more valuable than others. Although solar panels are the most popular due to their accessibility, they don't garner the most value. Green homes that are north-facing are more valuable by a significant margin. More buyers are looking for green homes with structural or design advantages.
Green home loans for your green home purchase
Because there is quite a steep premium for green homes in some areas, financing your home purchase can be difficult. The good news is that there are loans out there specifically for buying green homes.
At loans.com.au, we offer discounted finance for those buying or building energy-efficient homes. Check out our range of green home loans and solar home loans! Learn more by speaking with our friendly lending specialists. Call 1300 572 814 or apply for a home loan online today!
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
