If there were any green building deniers still out there in property world, Monday’s release of the latest research by the Australian Property Institute and the Property Funds Association of Australia will hammer the last nail in their coffin.
Green buildings make financial sense, especially if they are rated five star NABERS energy, not just by a fraction but by a huge 9 per cent overall and a massive 21 per cent if the asset is in Canberra, the report found.
In Sydney the premium fell to 8 per cent in the suburbs and only 4 per cent in the CBD, more a factor of the maturity of the green building market and the almost complete absence of non-rated A grade and premium buildings.
Green Star rated buildings showed a premium in value of 12 per cent and 5 per cent in rents.
The report, Building Better Returns was undertaken by Graeme Newell and John MacFarlane of the University of Western Sydney and builds on the work of Nils Kok from the University of Maastricht, with data supplied by Jones Lang LaSalle and CBRE.
It centres on the Sydney CBD and suburban market and Canberra.
According to Professor Newell and Associate Professor MacFarlane who spoke to The Fifth Estate after their presentation at The Establishment in Sydney, the work will place Australian green building research on the global map.
“This was really special,” said Professor Newell. “It was one that the industry had a great commitment for and one that the API and the PFA had a great commitment for. And it tells a great story.”
Australia already has a growing reputation in the field and its best Australian green buildings are highly regarded, Professor Newell said.
Source: The Fifth Estate