While sustainability features might seem a luxury add-on when it comes to new apartments, the reality is that consumers now have a level of expectation – which isn’t always to do with saving the planet.
New home buyers around the country have a long wish list when it comes to what they want in an apartment or new build. From air-conditioning to outdoor areas, ensuites to built-in-robes, expectations are high with developers sometimes stretched to fit all these requirements in at a consumer-friendly price point.
New home buyers are increasingly savvy when it comes to the features they’re expecting when looking to purchase. Picture: HIP V. HYPE
But with sustainability increasingly a key focus across broader society, where does that leave the new home industry? You might be surprised.
New home buyers want cost-effective homes
Sustainable features like solar power, double-glazed windows and energy-smart design might sound like nice-to-have items in a home, but the reality for consumers is that they know these items will save them money over the long term.
According to a recent realestate.com.au survey of 1,001 Australian new apartment buyers, more than 42% were searching for developments with green features such as solar power, green common areas, water harvesting features and communal vegetable gardens.
When surveyed, 78% of responders thought housing developers should incorporate sustainable features and 59% thought solar power is primarily a cost-saving benefit.
“Sustainability is important to buyers,” explained Stacey Lewis, market research and insight manager at realestate.com.au, “but it’s an expectation for most, rather than a value-add.”
“When buyers think about sustainability, it’s largely a cost-based or cost-saving decision,” Ms Lewis said.
Executive manager of economic research at realestate.com.au Cameron Kusher agreed, saying he thought sustainability features will move, over the coming years, from a nice inclusion to a necessity.
“Remember that once upon a time features like air conditioning, for example, were not standard; now you wouldn’t buy a new apartment without them. Moving forward, sustainability features that can save the owner money on an ongoing basis will become the norm rather than the exception.”
Melbourne developer paving the way for sustainable living
Sustainable housing developers have realised that their customers aren’t always solely concerned with saving the earth when it comes to buying their next home, but the cost-saving benefits of sustainable homes are making it easier for consumers to make a greener choice.
“The biggest driver for many of our purchasers is location and value,” said Katya Crema, director of projects and head of sales at HIP V. HYPE, a sustainability-focused housing developer in Melbourne.
In planning for their most recent project, the completely carbon-neutral Ferrars & York, they benchmarked prices against single-fronted terraces in the area so that their terrace-style penthouse homes are priced in a similar range to the cost of a renovated terrace. The other apartments compare price-wise to the un-renovated terraces in the area.
So when it comes to purchasing-time, customers have a clear choice between buying an existing terrace or a brand-new, high-performing, carbon-neutral apartment, Ms Crema explained.
Location and amenities are key for new home buyers. Picture: Hip V. Hype
Add to this the lower lifetime operational costs, lower maintenance bills, smarter design and added lifestyle factors of a newer home and the sums are pretty clear. Consumers are making a choice that not only makes sense for the hip pocket but for the planet, too.
Launched online in May, Ferrars & York sold 60% of the project within 10 weeks with construction set to commence in late August. Ms Crema said the very positive result demonstrates that people see value in well-designed, high sustainability performance homes regardless of the uncertainty in the broader property market amid COVID-19.
One purchaser, Lincoln Brown, said he and his partner, Tanja Spolander, were drawn to Ferrars & York for its location next to the South Melbourne Market, as well as the high sustainability performance of the apartments and its community focus.
A focus on sustainability is changing the new housing market
Liam Wallis, founder of HIP V. HYPE, told realestate.com.au that the Australian new home market is changing slowly but surely when it comes to sustainability.
“The minimum energy efficiency standards are still quite low compared to global leaders and a lack of focus on post-completion testing means that there’s a high likelihood that many new buildings do not perform as designed,” Mr Wallis said.
“For us at HIP V. HYPE, a deeply integrated approach to sustainability is non-negotiable. We believe that the built environment should not expand at the expense of our natural environment and we have a responsibility to ensure that the projects we are delivering contribute to the sustainable growth of our cities.
Sustainability is becoming more of an expectation than something buyers are willing to pay more for. Picture: Hip V. Hype
“Our purchasers see long-term value in low impact, durable homes that will not only be cost-efficient to operate over their lifespan but will also provide liveable spaces that support the physical and mental wellbeing of the residents.”
The South Melbourne project is powered by 100% renewable energy and, using very high energy-efficiency design and passive design principles, including natural light, cross-flow ventilation and external blinds that minimise energy use for heating and cooling, significantly reduces energy costs.
“This approach also provides for more consistent internal temperatures to enhance healthy living and, importantly, comfort,” Wallis explained.
“We don’t believe that living more sustainably is about significantly changing our way of life, we believe that it’s simply about living smarter, a little less wasteful and, importantly, being more aware of our decisions. Design and technology also play a huge role in helping us to live more sustainably, more simply.”
The post Sustainability a key focus for cost-savvy new home buyers appeared first on realestate.com.au.