Why Sustainable Design Is Becoming a Deciding Factor for Property Buyers

Running costs used to be an afterthought in property decisions. Buyers focused on the purchase price, the location, the number of bedrooms. What it would cost to heat, cool, and power the property came later, if it came at all.

That calculus is changing. Energy prices have risen sharply. Climate awareness has moved from background concern to everyday consideration. And a new generation of buyers is asking questions about sustainability that previous generations simply did not think to ask.

For developers who have built environmental performance into their projects from the ground up, this shift is a competitive advantage. For buyers who understand what to look for, it is an opportunity to make a purchase that performs better over time -- not just at the point of sale.

Avenue | Castle Hill NSW | $10K deposit | Secure with $10k and $699 x 93 weeks

What Sustainable Design Means in a Residential Development

Sustainable design in residential property covers a range of features, some structural and some operational. The ones that matter most to buyers are typically those with a direct impact on running costs and long-term liveability.

Energy ratings. The NatHERS star rating system assesses a home's thermal performance, how well it maintains comfortable temperatures without excessive heating or cooling. The minimum standard for new residential buildings in NSW is 7 stars as of October 2023. Developments that exceed this minimum, achieving 6.5 stars or higher under the older assessment system, or 7 stars and above under the current one -- are built to perform better than the baseline.

Rooftop solar. On-site renewable energy generation reduces grid dependence and lowers electricity bills for residents. In apartment buildings, the economics of solar are more complex than in freestanding homes because the energy generated needs to be distributed across multiple dwellings. Developments that have integrated solar into the building design from the outset tend to do this more effectively than those where it has been retrofitted.

Passive design. Passive design principles, orienting buildings to maximise natural light, designing for cross-flow ventilation, using thermal mass to regulate temperature, reduce the energy needed to keep a home comfortable. A passively designed apartment needs less air conditioning in summer and less heating in winter. Over a 20-year ownership period, that difference in running costs is significant.

EV charging infrastructure. Electric vehicles are moving from early adopter territory to mainstream. Apartment buildings that have EV charging infrastructure in place, or conduit installed to make future installation straightforward, are better positioned for the direction transport is heading than those that do not.

Water efficiency and landscaping. Water-efficient fixtures and landscaping that does not require intensive irrigation reduce running costs and environmental impact. Communal gardens designed with sustainability in mind also tend to require less ongoing maintenance, which affects body corporate costs over time.

Waterstone | St Leonards NSW | $26K deposit | Secure with $26k and $544 x 60 weeks

Why Energy-Efficient Homes Are Becoming More Valuable

Electricity prices in NSW have increased substantially over the past three years. A property that generates its own energy through rooftop solar or requires less energy to maintain comfortable temperatures has a measurable advantage over one that does not.

At the same time, buyers are increasingly considering the future saleability of a property. A home built to high environmental performance standards is likely to be more appealing to future buyers as sustainability expectations continue to rise. Conversely, a poorly performing property may face increasing difficulty attracting buyers or tenants as minimum standards tighten over time.

Green Star ratings and NatHERS scores are becoming part of the vocabulary of informed property buyers in the way that aspect, ceiling height, and car spaces already are.

The Orchards | Norwest NSW | $19K deposit | Secure with $19k and $1,584 x 12 weeks

What to Look for When Assessing Sustainability in a New Development

Not all sustainability claims are equal. Marketing language around "eco-friendly" or "sustainable living" can be vague. The features worth asking about specifically are:

The NatHERS star rating and how it was achieved. A higher rating achieved through passive design is more valuable than one achieved primarily through mechanical systems, because passive features have no running costs.

Whether solar is building-integrated or added to the roof as an afterthought. Integrated systems tend to perform better and contribute more meaningfully to residents' energy costs.

The specifics of EV charging, whether conduit is installed throughout the car park or only in a limited number of spaces, and what the process is for residents who want to charge.

Body corporate arrangements for the management of shared sustainability infrastructure. Solar energy sharing schemes require clear governance to work well.

Avenue: Sustainability Built Into the Architecture

Avenue by Masscon is an example of a development where sustainability has been integrated into the design rather than added as a feature after the fact.

The project achieves a minimum 6.5-star NatHERS rating through passive design principles, cross-flow ventilation, natural light orientation, and thermal performance, rather than relying primarily on mechanical systems to compensate for poor design. Rooftop solar generates on-site renewable energy. EV charging infrastructure is included. The landscaped communal areas and central green spine reflect a considered approach to outdoor space that extends the building's environmental thinking beyond the individual apartments.

For buyers who are weighing up similar developments in the Castle Hill area, the sustainability credentials at Avenue represent a meaningful long-term advantage in running costs and future saleability.

Avenue | Castle Hill NSW | $10K deposit | Secure with $10k and $699 x 93 weeks

Apartments range from $750,000 for one-bedroom configurations to $1,700,000 for larger residences, with completion estimated for Q3 2027. Through Coposit, buyers can secure with $10,000 upfront and $699 weekly instalments over 93 weeks.

Browse Argo, Avenue and other sustainable new developments on the Coposit projects page. Download the Coposit app to explore what's available, or contact the Coposit team to talk through which project suits your situation.