The objective of this work was to reinforce QBE LMI’s position by providing an outlook of housing market performance and stimulate informed discussion about environmental sustainability within the housing market and a state by state performance analysis of housing market prices and rents.
The project was approached collaboratively with the QBE LMI project group. The focus of the report was established during the early stages of the project and early drafts of the work were shared for feedback and direction.
The green housing aspects of the report were informed by collecting data from a variety of publicly available sources, complemented by Oxford Economics’ surveys of household appliances and residential construction. The residential price and rent forecasts were based on a macroeconomic-led approach to forecasting, complemented by Oxford Economics’ ongoing analysis of the market.
Oxford Economics Australia supported QBE LMI with final report design and review, as well as a joint presentation for an online webinar at report launch.
The report is published at https://www.qbe.com/lmi/news/reports/housing-outlook. It has helped to enhance QBE LMI’s reputation by informing the public, banking sector, government and non-government organisations about important issues for the housing sector.
Key findings include:
- Making a property more sustainable and resilient adds value to it. Across the spectrum of studies of green properties, the consensus is that energy efficient homes are valued at 5% to 10% more than others event after accounting for property specific items.
- The transition to green housing was accelerated at the recent meeting of Building Ministers with the decision to mandate a minimum 7-star Nationwide House Energy Rating Scheme (NatHERS) rating for all new homes.
- The introduction of an Australian wide mandatory energy rating system for residential property has the potential to further incentivise the adoption of green housing in Australia similar to what has been observed in Europe.
- Australia has the highest uptake of rooftop solar in the world, with nearly 3.2 million installations, or around 30% of all homes as of June 2022