Do buyers look at sustainability when looking to buy?

As the world of property is constantly evolving, sustainability has become a factor in what buyers look for when searching for a property purchase. How has this affected sale prices and what can we expect to see around sustainability in the near future.

23 May 2022

Do buyers look at sustainability when looking to buy?
Do buyers look at sustainability when looking to buy?

New Zealanders and Sustainability

Are New Zealanders thinking sustainably in their housing purchases? You’d probably think ‘what’s that all about?’ but more people are choosing to go green and buy sustainable homes. Experts say the trend will only pick up pace as these homes become more prominent. Recently, the real estate Institute of New Zealand brought out the mega trends survey, which sees what’s going to happen in the next 20-25 years in real estate. Quite possibly there will be widespread government regulations and incentives to encourage sustainable practices, rising demand for green investments and the normalisation of what used to be a niche buyer expectations such as solar power, the mega trends report sites that in the United States research shows most buyers prefer to go green.

What we can expect

When given the option, it found 60% would incorporate passive solar design in their homes. While 66% would opt for durable materials. It also found buyers are willing to invest in features that help lower their utility bills, with the average buyer willing to pay as much as 14 thousand New Zealand dollars more upfront to save a thousand dollars annually on utility costs. Green building council, chief executive, Andrew Eagles says that five years ago, between 400 and 500 new home builds went through the Homestar system, which rates health efficiency and sustainability of homes, but close to 6,000 homes all have gone through it this financial year, he says.

Not only is that a 12% increase in 4 years, but with about 49,000 consents issued last year, it equates to over 12% of the new homes being built. If those figures are looked at as a trend, the council is expecting a percentage of Homestar rated homes will increase to about 20% of the new build market over the next few years.

What affect does this have on sale prices?

It’s Really interesting that there are some properties that build to a six star or higher ranking, Kiwi properties homes are rated at seven or higher. You see sometimes on, solar power through offerings that we can click on a button and get a quote or an analysis has happened over 2000 heightens in recent times. Homes that have got solar are selling for $35,000 more oaverage than comparable properties nearby. There are a lot of listings that have eco-friendly keywords, such as EV charging, EV plugged solar panels and energy efficiency rose from 20% from 2019 to 2020 then by another 14% from 2020 to 2021. So, would you pay more to have a home that’s sustainable, particularly if it saves you money? that’s a question I’ll leave you.

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