Does your NatHERS star rating actually affect your sale price?

The research says yes...but the answer depends on where you live, and the situation in Australia is changing fast.

The ACT is the only place we have solid data

Outside Canberra, most existing homes have never had their energy rating measured or shown to buyers. The ACT is the only state or territory that has required sellers to disclose an energy rating for over two decades, which makes it the only place researchers can properly study the question.

The results are clear. In the ACT, each extra star on a home's energy rating adds around 3% to its sale price, once you account for other factors like location, size, and age. University of Melbourne researcher Dr Georgia Warren-Myers studied tens of thousands of ACT sales and found five and six-star homes sold for 2% and 2.4% more respectively than comparable three-star homes. At the top end, a seven-star home attracted a 9.4% premium over a three-star one, worth roughly $72,000 at 2019 median prices. Renters respond similarly: five and six-star rentals commanded a 3.5% and 3.6% premium over three-star equivalents.

Even in the ACT, the picture isn't perfectly clean. In inner-city areas, the high land value of old, inefficient homes on desirable streets can make it hard to see the star rating effect in the data.

The national figures look impressive — but treat them with caution

Domain's 2025 Sustainability in Property Report found energy-efficient houses across Australia sell for 14.5% more on average (about $118,000) and energy-efficient units sell for 12% more. Melbourne had the largest gap of any capital city.

These numbers are eye-catching, but they need context. Analysts have pointed out this is likely a correlation, not a cause. Homes with solar panels, double glazing, and heat pumps tend to be better maintained, more recently renovated, and in better neighbourhoods. The energy features alone probably aren't worth $118,000. The ACT research, which is specifically designed to separate out the energy rating effect, found more modest but more reliable figures. A review of 27 studies across 14 countries found the typical premium for a more energy-efficient home is around 5% to 10%.

The problem: most sellers can't prove their rating

Outside the ACT, energy ratings for existing homes simply haven't been recorded or shared. A survey of 300 real estate agents found 91% couldn't tell buyers the energy rating of a home they were selling, and 46% couldn't name a single energy-saving feature. Not because they were hiding it, but because nobody had measured it. Research on property valuers found the same gap: valuers had little knowledge of energy rating tools and little ability to factor them into their estimates, because there was no mandatory disclosure system giving them reliable data.

The ACT shows what happens when you fix this. Once ratings appeared on listings, buyers started treating the star rating like any other feature, alongside bedrooms, bathrooms, and parking.

This is about to change across Australia

Victoria's existing homes average around 1.8 stars, well below the 6-star minimum required for new homes built since the mid-2000s. That gap hasn't mattered much in the market because buyers couldn't see it. Now they will.

In March 2025, Australian Energy Ministers agreed on a plan to roll NatHERS ratings out to existing homes. Banks will be able to use the ratings to issue green loans, and states and territories are expected to require ratings to be disclosed when a home is sold or rented. A voluntary scheme opened in mid-2025, with mandatory disclosure expected by 2027. Major lenders including CBA, Westpac, and NAB have already launched green home loans with lower interest rates for homes rated 7 stars or above.

What does this mean in practice?

The research from the ACT and from international studies consistently shows a real premium for higher-rated homes, but only where ratings are actually visible to buyers. That's the key. Without mandatory disclosure and certification, energy efficiency simply doesn't show up in valuations or sale prices in any reliable way. As that changes in Victoria, homes that perform well will find it easier to demonstrate that to buyers and homes at the bottom of the scale will find it harder to avoid scrutiny.

Want to get a rating that will set your home listing apart from the competition?

Book a free, no-obligation 15 minute call with Jay, a NatHERS accredited home energy assessor and professional project manager, to talk through next steps.

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