Energy-Efficient Homes Command Price, Rental Premiums

REIWA

Energy-efficient homes are showing signs of attracting stronger sale prices and rental returns, with two WA properties among the case studies highlighted in a new national report.

The Efficiency Edge, released by the Real Estate Institute of Australia (REIA) and Cotality, examines the growing role of home energy performance in property decisions as buyers and renters place greater emphasis on comfort, running costs and energy use.

The report found higher-performing homes in its case studies achieved sale prices up to 66 per cent above comparable local medians, while one property recorded a rental return 35 per cent higher than an alternative inspected by the tenant. It notes energy performance was one factor in these outcomes, alongside location, design, condition and other property characteristics.

Key findings

The report points to growing consumer interest in understanding how homes perform:

  • 86 per cent of participants in Australian Government research said seeing a home's energy rating was important when buying
  • 75 per cent said it was important when renting
  • home energy performance is becoming more relevant to considerations such as comfort, running costs and affordability
  • energy ratings and other performance information are becoming more visible as disclosure requirements develop across Australia.

REIA President Jacob Caine said consumers were increasingly looking beyond a home's appearance and location.

"Consumers are increasingly interested in understanding how a home will perform, not just what it looks like or where it's located," he said.

"Comfort, running costs and energy performance are becoming part of the property conversation, and real estate professionals have an important role to play in helping consumers understand what that means in practical terms."

WA homes put energy performance to the test

Two of the four case studies featured in the report are in WA.

In Mount Hawthorn, a three-bedroom home sold for $1.25 million in 2023, above the comparable local median at the time. The property is now rented for $1,250 per week, compared with a suburb median of $950 for three-bedroom houses. The report highlights natural light, cross-ventilation and year-round comfort among the features contributing to its appeal.

In Fremantle, a three-bedroom townhouse sold for $1.555 million in April 2026, around 22 per cent above the comparable three-bedroom townhouse median. Buyer feedback included in the report also identified sustainability as a significant factor in the purchase decision.

How WA compares

Approaches to energy ratings, disclosure and minimum standards currently differ across Australia:

Australian energy efficiency standards by state and territory (2026)
Scroll sideways
State/TerritoryHome energy rating disclosureRental energy efficiency standards
ACTMandatory at point of sale since 1999Established requirements and highest disclosure maturity
NSWVoluntary disclosure being introduced ahead of mandatory schemeMinimum Energy Efficiency Rental Standards (MEERS) under consultation in 2026
VICLimited disclosure todayNew minimum energy efficiency standards for rental homes from 2027
QLDNo disclosure requirementMinimum housing standards in place; future energy-specific reforms possible
WANo disclosure requirementEnergy efficiency measures not formally under consideration
SANo disclosure requirementConsidering minimum rental energy efficiency standards as part of national reforms
TASNo disclosure requirementExploring nationally-aligned rental efficiency measures
NTNo disclosure requirementEarly-stage consideration of national reforms

For WA property owners and buyers, the findings suggest energy-efficiency features may become an increasingly visible part of how homes are assessed, marketed and compared.

For the full findings and case studies, download The Efficiency Edge.

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