Climate Change And Its Effect On Real Estate
Climate change and global warming have become the "hot" topics of conversation of late and have well and truly found their way into real estate. Buyers and tenants are now pondering the effect our warming climate and reduced rainfall will have on their home environment.
Interestingly, Archicentre, the building advisory service of the Royal Australian Institute of Architects, has been conducting an online poll that has produced some very interesting results. Visitors to their website are asked which property they would prefer if all other features were equal:
a) The property with a water tank for garden watering, or
b) The property with a spa in the ensuite, or
c) The property with a large plasma screen TV.
At the time we went to print, over 1400 people had responded to the survey. A resounding 80% said they preferred the property with the water tank for garden watering, 13% chose the ensuite with spa and 6% the plasma TV. This is just one small snapshot of how our real estate wants and needs are changing. The future will without doubt see environmentally friendly heating, cooling and water saving fixtures move up the wish list of many buyers and tenants. Products that we currently consider cutting edge or too costly will become commonplace as public demand and acceptance sets the standard.
The resurgence of the eave
In recent decades architectural fashion had moved away from large eaves around the home thus removing a simple (and cheap) means of keeping the house cool. Without eaves the harsh summer sun streams in, quickly heating up rooms and making it harder to cool down. This often leads to the need for energy guzzling air conditioners. Eaves are now a BASIX requirement (refer to last months newsletter) with the construction of most new homes. Ceiling fans, effective cross ventilation and roof insulation are a few ways to combat this design flaw that is not conducive to our warm climate.
Water walls
While the installation of a water tank or water bladder is possible in most suburban homes, these are not suitable for most apartments and townhouses - a huge and growing sector of the Sydney housing market. Archicentre believe that the development of prefabricated rainwater tanks which form part of the wall of apartment buildings and houses could be the way of the future. These would only provide water for the garden (and even toilet and in the laundry) but could also have thermal controls to heat and cool the home.
Solar powered homes
In the future we will probably see more residential homes installing photovoltaic panels on their roofs to capture (free) sunlight and create their own self sufficient energy supply. While this technology may be considered too expensive for most, the manufacturers claim the cost can be recouped via government rebates, the value that is added to the home plus savings on your electricity bill. Will self sufficient solar powered homes become something sought after by buyers and tenants in the not too distant future? We'll have to wait and see.
Solar powered air conditioning systems
The humble air conditioner is one of the most energy hungry appliances in the home. With our average temperatures predicted to get hotter over the coming years more air conditioners will be installed and usage will increase. The good news is that there are solar powered air conditioning systems already available in Australia. As public awareness of this type of technology increases and more products are made available, undoubtedly environmentally conscious home owners will opt for this cleaner alternative.
Drought resistant gardens
Australians love their gardens and thrive on an outdoors lifestyle. A useable outdoor area becomes an extension of the home and can add tens of thousands to it's value. A carefully planned garden, featuring drought tolerant plans and cool, shaded areas for relaxing and entertaining will mean that even on the hottest summer day the garden is still functional. Before undertaking a large scale garden makeover home owners should consider how our changing climate might affect the future of their garden and the subsequent value of their home.
This list is by no means complete but indicates just a few areas where climate change may have an affect on the Sydney real estate market. It will not only be homes for sale that will benefit from an environmentally friendly makeover but investment properties as well. Tenants are just as environmentally aware as home buyers and should not be overlooked. Astute landlords can not only increase the value of their investment but at the same time make it more desirable to tenants which may in turn increase their rent return. In many cases the Government offers rebates for the installation of certain energy and water saving devices.
It goes without saying that all home owners and landlords should make their real estate agent fully aware of all energy efficient and water saving devices the property features so they can pass this information on to potential buyers and tenants.