According to Domain’s Sustainability in Property 2025 report, energy-efficient (EE) houses sold for 14.5% more than comparable non-EE homes in 2025, equating to an average $118,000 uplift.
Units weren’t far behind, attracting a 12% premium, or roughly $75,000 more than their non-EE counterparts.
Buyers are putting a tangible value on practical features that reduce running costs and boost comfort. Properties with north-facing orientation commanded the highest median price uplift nationally – $375,500 – while double-glazed homes added $145,000 and solar-equipped homes $140,000 on average.
In Sydney, the premium for north-facing homes topped $615,000.
While solar remains the most common EE feature, found in 37.6% of houses sold in 2025, less widespread features like double glazing and passive design are driving outsized value thanks to their relative scarcity and comfort benefits.
The financial case beyond sale price
The upside of energy-efficient design isn’t limited to capital gains. Homes with strong insulation, solar, and strategic orientation can reduce heating and cooling needs by up to 51%, leading to hundreds of dollars in annual savings.
For buyers focused on managing household budgets, these homes are increasingly seen as smart long-term investments.
Energy-efficient houses attracted 13.8% more listing views than non-EE ones in 2025, highlighting growing buyer interest.
Units with EE features saw 6.5% more engagement. Yet this demand doesn’t always translate to faster sales, suggesting some buyers are keen but constrained by affordability.
Contrary to assumptions that energy-efficient homes are confined to prestige suburbs or high-income earners, Domain’s data suggests the opposite.
Many of the top-performing EE suburbs are located in middle-income areas – where buyers are seeking long-term cost relief and resilience against rising bills.
Suburbs like Broken Hill (NSW), Calamvale (QLD), and Port Pirie (SA) posted EE house premiums of 35–75%, with average annual household incomes well below major capital city levels.
This points to a broadening buyer mindset: energy efficiency is increasingly viewed as a wealth-building strategy, not just a lifestyle preference.
Energy-efficient homes in regional Australia are outperforming their capital city counterparts.
EE houses in regional areas sold for 21.3% more than non-EE homes, while EE units fetched 30.8% more – triple the uplift seen in the cities.
This trend reflects lower base prices (enabling upgrades), larger land lots for retrofits, and higher sensitivity to energy costs in regional settings.
What it means for agents
For real estate professionals, the takeaway is clear: energy efficiency is more than a sales hook – it’s a genuine value driver. Buyers are seeking homes that will shield them from future cost increases and deliver tangible comfort benefits.
Agents should be proactive in:
- Highlighting EE features in listings using high-performing keywords like “solar”, “eco” and “north-facing”.
- Educating vendors on how modest upgrades (e.g. insulation, window glazing) can translate into higher sale prices and increased buyer interest.
- Understanding the growing role of policy (e.g. ACT’s mandatory energy ratings) and its potential influence on disclosure standards nationally.
View the report here.
