Across New South Wales — and Australia more broadly — the real estate market is undergoing a notable shift. Increasingly, buyers are prioritising energy-efficient homes, green living, and lifestyle-driven neighbourhoods over purely “location and space.” These preferences reflect growing environmental awareness, rising energy costs, and a desire for communities that promote wellbeing and long-term value.

Why Sustainable Homes Are Gaining Traction

Recent data from Domain’s 2025 Sustainability in Property Report shows that energy-efficient (EE) homes, once seen as niche, have now become mainstream. Over half of all houses sold recently included at least one eco-friendly feature — such as solar panels, double-glazed windows, or enhanced insulation — and nearly 40% of units did too. 

Buyers are clearly willing to pay more for these benefits: on average, EE houses sold for about AUD 118,000 more than non-efficient homes, a premium of 14.5%.  In some cities and suburbs the uplift is even larger. 

For many buyers, these features are not just “nice to haves” — they deliver lower energy bills, more comfortable living, and a smaller environmental footprint long-term. 

Lifestyle & Location: Walkability, Green Spaces, Transit

Sustainability isn’t only about what’s inside the home — many buyers are now evaluating the broader neighbourhood and community. According to a recent survey by developer Mirvac, homebuyers in 2025 rank walkability, proximity to public transport, and access to parks, shops, and essential services high among their must-haves. 

For younger buyers and families in particular, these lifestyle aspects matter. Walkable suburbs with parks and local amenities support a lower-carbon, less car-dependent lifestyle and bring a community feel. As a result, “hyperlocal living” — where daily needs are within walking distance — is emerging as a new blueprint for future communities. 

What This Means for NSW Buyers (and Property Developers)

• For homeowners or buyers: Investing in a sustainable home can pay off — lower bills, improved comfort, and stronger resale value.

• For families or younger buyers: Neighbourhood quality (green spaces, walkability, public transport) increasingly matters as much as the house itself.

• For developers and planners: Demand is shifting toward properties with energy-efficient design, smart-home potential, and community-friendly layouts — and building around transit and amenities.

Sustainability has moved beyond environmental idealism; it’s now a pragmatic, financially savvy choice. In NSW’s evolving real estate landscape, homes and communities that prioritise energy efficiency, green living, and walkable convenience are fast becoming the new standard.

Sources: Domain 2025 Sustainability Report; Mirvac Property Choices 2025; realestate.com.au Property Seeker survey.