How buying an eco-friendly apartment could save you more than $100k

Australia’s first standardised rating for eco-friendly apartments has launched nation-wide, with the Green Building Council of Australia expecting it to be a gamechanger for buyers.

GBCA chief executive (CEO) Davina Rooney said while upfront costs may increase by about 1.3% (or around $11,700), homeowners would quickly feel the benefits.

“From your first repayment, you’re better off,” she said. “The demand for apartments must be met with cost-effective and sustainable solutions”.

This as the GBCA launched their Green Star apartments pathway on Tuesday: an independent way to verify if an apartment is environmentally sustainable within a certified building.

Estimates modelled on a $900,000 Sydney apartment showed a homeowner with a Green Star apartment could save more than $110,000 over a 30 year period. This is thanks to discounted home loans, reduced energy bills and growing value over the unit.

“The rating system we’re launching today will make it easier for developers to create generation-defining homes,” Ms Rooney said.

“It will help more Australians get their foot in the door in a way which not only saves them money – now and into the future – but also reduces our carbon footprint.”

Standards for a home with this certification include a reliance on renewable energy, water-efficient plumbing and well-insulated design, to future-proof the home for the changing climate.

A render for one of the first eco-friendly developments under construction, with the GBCA’s new sustainability rating. Picture: News Corp Australia

Duncan and Sarah Betts are one of the first families expected to live in an apartment with a Green Star rating, in a new Queensland development at 185 Wharf St, Spring Hill.

After living in a home within Brisbane’s suburbs, the couple decided to purchase a three-bedroom apartment at the site, set to complete construction by the end of 2027.

“We see apartment living in Brisbane being a genuine alternative,” Ms Betts said.

The project is being made by Cbus Property, one of several developers working with the GBCA to make Australia’s first Green Star apartments.

The Betts family said they bought their new apartment for its quality eco-friendly amenities, along with its easy access to work and the city.

“It’s ticked all the boxes,” Ms Betts said. “Even just basic things like orientation, with the majority of apartments facing north to increase the airflow and reduce the need for air conditioning.”

Homeowners Duncan and Sarah Betts value the home for its sustainable features, such as a design built to reduce airflow and discourage air conditioning. Picture: News Corp Australia

Three-bedroom units in the complex sit in the $2 million range; two-bedroom apartments start at around $1.3 million, and penthouse homes steer closer to the $8 million mark.

Cbus Property CEO Adrian Pozzo said the units at 185 Wharf St were designed to offer long-term cost savings for its residents.

“We are proud to be part of this initiative because we know it will be game changer in helping more Australians access healthier, more liveable and more sustainable apartments,” he said.

Green Star apartments are also being trialled with Frasers Property, Homes Victoria, Lendlease, Sentinel and Stockland.

Homes Victoria is seeking to bring Green Star ratings to their public housing homes, bringing the scheme to lower-income residents.

A total 142 apartment projects have registered under the Green Star Buildings rating tool so far: meaning around 27,500 individual apartments are eligible to use the pathway.

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“Quite a lot of the developers are putting this into their value proposition,” Ms Rooney said.

The launch was paired with the release of the Rise and Thrive report from GBCA and Gateway Bank, including research on the financial benefits of sustainable living.

Gateway Bank confirmed the certification will be accepted as part of its Green Home Loan eligibility criteria, with others expected to follow suit.

Ms Rooney said she wanted to see the pathway become a norm for every unit across Australia.

“Sustainable apartments shouldn’t come with a cost premium — they should be the standard,” she said. “This is available right now, and we’d love to do a lot more of it in the future.”

This article first appeared on realestate.com.au and has been republished with permission.