Why Sustainable Apartments Matter

When buying or investing in an apartment, sustainability probably isn’t the first thing on your mind. But with rising energy costs, growing climate risks, and a stronger push for greener housing, sustainable apartments are becoming a big topic in Australia’s property market.

The Green Building Council of Australia (GBCA) recently released a report—"Rise and Thrive: Sustainable Apartments for a Resilient Australia"—exploring how apartments can be more energy-efficient, climate-ready, and cost-effective over time.

But what does that actually mean for homeowners, developers, and policymakers?

In this article, we’ll break down the key takeaways in plain English, explore what works (and what doesn’t), and see whether these recommendations hold up in the real world.

The Rise and Thrive Report

Key Takeaways from the Report

The "Rise and Thrive" report, published by the Green Building Council of Australia (GBCA), highlights key aspects of sustainable apartment living. Here’s what you need to know in simple terms:

Who Published It?

The GBCA is a non-profit industry body that promotes sustainable construction in Australia. They are responsible for the Green Star certification, a rating system that assesses how environmentally friendly buildings are.

What Does It Cover?

The report focuses on:

✅ Building design & sustainability – How apartments can be designed to use less energy, generate less waste, and be more liveable.

✅ Energy efficiency & cost savings – How residents can reduce electricity and water bills.

✅ Resilience & climate adaptation – How buildings can withstand extreme weather and natural disasters.

✅ Affordability & investment potential – Whether sustainable apartments make financial sense for homeowners and investors.

Why Should You Care?

For home buyers: Choosing a sustainable apartment could mean lower utility bills, healthier indoor air quality, and better long-term property value.

For developers: Following sustainability guidelines might help attract more buyers and meet future government regulations.

For policymakers: Encouraging sustainable apartments could help reduce strain on energy grids, lower carbon emissions, and create more resilient housing stock.

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Key takeaway: The report argues that sustainable apartments aren’t just good for the environment—they also offer financial and practical benefits for homeowners, investors, and cities.

3. Main Findings in Plain English

The "Rise and Thrive" report highlights several key aspects of sustainable apartment living.

Here’s a breakdown in plain English:

1. Building Design & Sustainability Features

Modern sustainable apartments are built with energy efficiency and durability in mind. This includes:

Green Star certification – A rating system that ensures buildings meet environmental standards.

Passive design principles – Using smart layouts, insulation, and natural ventilation to reduce reliance on heating and cooling.

Sustainable materials – Choosing materials that are long-lasting, low-waste, and environmentally friendly.

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Example: Some apartments use double-glazed windows and thermal insulation to naturally keep temperatures stable, reducing the need for air conditioning.

2. Energy Efficiency & Cost Savings

One of the biggest advantages of sustainable apartments is lower utility bills. The report suggests:

  • Solar panels & battery storage – Allowing buildings to generate and store their own electricity.
  • Water-saving systems – Efficient fixtures that reduce water use without compromising performance.
  • Smart energy management – Automated lighting and appliances that reduce unnecessary power consumption. Smart meter boxes coupled with V2G (Vehicle To Grid), battery and solar with smart inverters is the future in electricity for Australian Homes.
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Example: A solar-powered apartment might cost more upfront but could save thousands of dollars in electricity over time.

3. Resilience & Climate Adaptation

With extreme weather becoming more common, apartment buildings need to be more resilient. This means:

  • Flood-resistant designs – Raised foundations, permeable surfaces, and better drainage to prevent water damage.
  • Heatwave-friendly construction – Using materials that reflect heat and improve ventilation to keep buildings cooler naturally.
  • Storm-proofing – Stronger windows, reinforced structures, and better emergency planning.
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Example: In bushfire-prone areas, buildings might be made with fire-resistant materials and sealed ventilation systems to reduce smoke entry.

4. Affordability & Investment Benefits

Sustainable apartments aren’t just good for the environment—they can also be a smart investment. The report argues that:

  • Lower running costs – Reduced electricity and water bills mean long-term savings for homeowners.
  • Higher resale value – Buyers are increasingly looking for energy-efficient properties.
  • Government incentives – Some sustainable developments receive tax breaks or rebates.
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Example: In some cities, apartments with solar panels and efficient insulation have been shown to sell faster and at higher prices than older, less sustainable units.

4. Identified Biases in the Report

The "Rise and Thrive" report offers valuable insights, but it’s worth remembering that no report is completely unbiased.

This one, in particular, comes with certain biases that should be considered when reading though it.

1. Green Industry Advocacy

The Green Building Council of Australia (GBCA) is a strong advocate for sustainability in construction. This means:

✅ The report promotes Green Star-certified buildings, as GBCA developed the certification.

✅ There’s an emphasis on industry-led change rather than government mandates.

✅ The potential downsides of sustainable construction—such as higher upfront costs—are not explored in depth.

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Why this matters: While sustainable building practices are beneficial, the report assumes that most developers will willingly adopt them, even without financial incentives or regulatory pressure.

2. Corporate Sponsorship Influence

The report was supported by various industry stakeholders, including:

  • Banks that offer green home loans.
  • Developers who focus on sustainable projects.
  • Energy companies that benefit from renewables in housing.
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Why this matters: If banks and developers stand to profit from sustainable apartments, their recommendations may not always be in the best interest of the average homeowner.

For example:

  • Are green loans actually cost-effective for borrowers?
  • Will developers prioritise genuine sustainability or what’s easiest to market?

3. Policy Recommendations vs. Reality

The report assumes that sustainability in apartment design is a win-win for developers, buyers, and policymakers. But in reality:

  • Many developers prioritise cost-cutting over long-term sustainability.
  • Buyers often focus on purchase price rather than ongoing savings.
  • Governments may struggle to enforce sustainability regulations due to industry push back.

Why this matters: The report does not fully acknowledge the real-world barriers to making sustainable apartments the new standard in Australia.

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Key takeaway: While the report’s vision for sustainable apartments is commendable, it leans towards industry-friendly solutions and assumes voluntary compliance, which may not reflect market realities.

5. Shortcomings & Gaps in the Report

The "Rise and Thrive" report makes a solid case for sustainable apartments, but it skims over or oversimplifies some important areas. Here are the biggest gaps:

1. Limited Discussion on Retrofitting Existing Apartments

Most of the report focuses on new developments, but what about the millions of existing apartments in Australia?

  • Older apartment buildings are often energy-inefficient, poorly insulated, and expensive to maintain.
  • The report lacks a clear strategy for retrofitting these buildings to meet modern sustainability standards.
  • Example: Many apartment owners can’t install solar panels because they don’t own the roof—how does sustainability work for them?

2. Cost Barriers for Low-Income Buyers

While the report highlights long-term savings, it does not fully address the upfront costs of sustainable apartments.

Energy-efficient materials, solar panels, and smart technology increase construction costs, which may lead to:

  • Higher purchase prices for buyers.
  • Developers passing costs onto consumers, making sustainable apartments unaffordable for many.
  • The report suggests green home loans as a solution, but it doesn’t explore whether these loans are actually affordable.
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Example: A $600,000 sustainable apartment with energy savings of $1,500 per year sounds great—but what if buyers can only afford a $500,000 unit with no sustainability features?

3. Real-World Implementation Challenges

The report makes sustainability seem straightforward, but it glosses over the real-world challenges, such as:

  • Developer reluctance – Many builders cut corners to maximise profits, especially in high-demand housing markets.
  • Regulatory enforcement – Who ensures that sustainability measures are actually followed?
  • Strata issues – Apartment buildings are managed by owners’ corporations, and getting unanimous approval for sustainability upgrades can be slow and difficult.
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Example: Installing electric vehicle (EV) charging stations in an existing apartment building sounds great—but if just one owner objects, the upgrade may never happen.

4. The Role of Government Incentives

The report expects the market to push sustainability forward, but in reality, government incentives and regulations are often needed to make it happen.

  • It doesn’t explore whether tax breaks, grants, or subsidies could speed up adoption.
  • Other countries have stricter sustainability laws—how does Australia compare?
  • Without government support, sustainability may remain a premium feature rather than an industry standard.
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Key takeaway: The report paints an optimistic picture of sustainable apartments but glosses over major financial, regulatory, and logistical hurdles that need to be addressed.

6. Key Assumptions the Report Makes

The "Rise and Thrive" report makes several assumptions about the future of sustainable apartments. Some make sense, but others might not hold up in the real world.

1. Developers Will Voluntarily Adopt Green Building Standards

The report assumes that:

  • Developers will choose sustainability because it’s good for business. B
  • Buyers will demand Green Star-certified apartments, forcing developers to comply.
  • Industry self-regulation will be enough to push the market in the right direction.

Reality check:

❌ Many developers focus on minimising costs rather than long-term benefits.

❌ Some builders only meet the bare minimum of sustainability requirements.

❌ Without strong government incentives or penalties, adoption could be much slower than the report suggests.

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Example: If a developer can save $50,000 per unit by skipping double glazing or solar panels, many will cut corners to maximize profit.

2. Future Climate & Market Conditions Stay Predictable

The report assumes that:

  • Climate change will gradually worsen, allowing time to adapt.
  • Property markets will remain stable, making sustainable housing a good investment.
  • Energy prices will continue to rise, making energy-efficient apartments more attractive.

Reality check:

❌ Climate disasters (bush fires, floods, heatwaves) are accelerating faster than expected, creating urgent risks for housing.

❌ Economic downturns could make affordability a bigger concern than sustainability.

❌ If energy prices suddenly drop due to new technology or policy changes, sustainability may not seem as urgent to buyers.

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Example: If Australia suddenly switches to nuclear power or ultra-cheap renewables, energy-efficient apartments may not be as much of a selling point as the report suggests.

3. Homebuyers Prioritise Sustainability Over Immediate Cost Savings

The report assumes that:

  • Buyers are willing to pay more for sustainable apartments because of long-term benefits. The reality is this is only true for a small segment of the buyers market.
  • The resale value of Green Star-certified apartments will always be higher than standard apartments.
  • The cost savings from energy efficiency will be a major selling point for buyers.

Reality check:

❌ Many first-home buyers and investors prioritise affordability over sustainability.

❌ Some people won’t live in the apartment long enough to benefit from energy savings.

❌ If Green Star certification isn’t well understood, buyers may not see it as a major advantage.

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Example: If two apartments are identical except one is $50,000 cheaper, most buyers will choose the cheaper option, even if the other has lower energy costs in the long run.
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Key takeaway: The report assumes that market forces alone will drive sustainable apartments forward. In reality, stronger government incentives, better consumer education, and stricter regulations may be needed to make sustainability the industry norm.

7. Who Is This Report For & Why Does It Exist?

Knowing who the "Rise and Thrive" report is aimed at helps make sense of its goals—and where it falls short.

1. Who Is the Primary Audience?

The report is aimed at:

  • Developers & Builders – Encouraging them to adopt Green Star-certified construction methods.
  • Banks & Investors – Promoting sustainable apartments as a profitable long-term investment.
  • Government & Policy Makers – Advocating for policies that support green building initiatives.
  • Home buyers & Renters – Positioning sustainable apartments as a better housing choice.
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What’s missing? The report is heavily industry-focused but doesn’t fully address everyday homeowners who live in existing apartments and may struggle to upgrade to sustainability standards.

2. What Is the Purpose of the Report?

The report’s main goals appear to be:

  • Influencing policy – Making a case for stronger sustainability incentives and potential regulation changes.
  • Encouraging investment – Persuading developers and banks that sustainable apartments will be in high demand.
  • Promoting Green Star certification – Reinforcing the GBCA’s certification system as the standard for sustainable housing.
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What’s missing? The report assumes developers will act in good faith—but doesn’t address how to hold them accountable for meeting sustainability goals.

3. Why Does It Exist?

While the report offers real insights into sustainability, it also serves as a promotional tool for:

The Green Building Council of Australia (GBCA) – Strengthening its position as Australia’s authority on sustainable construction.

  • Industry partners – Promoting green home loans, sustainable building products, and new development projects.
  • Policymakers – Encouraging government support for Green Star initiatives.
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Key takeaway: The report provides valuable insights but is written with a pro-sustainability, industry-friendly angle. While it highlights many benefits, it doesn’t always address the challenges of making sustainable apartments accessible and enforceable in the real world.

8. Conclusion & What This Means for Homeowners

The "Rise and Thrive" report paints a pretty positive picture of sustainable apartments, highlighting the perks for homeowners, investors, and the environment. But if you look past the industry-friendly spin, there are some key insights that everyday Australians should consider.

If you’re in the market for an apartment, sustainability features can offer long-term value, but only if:

✅ The energy savings outweigh the upfront costs—check how much extra you’re paying for green features.

✅ The building has meaningful sustainability measures—not just token efforts like "green branding."

✅ You plan to stay long enough to benefit—lower bills over time matter more in the long run. Consider long-term savings vs. upfront costs before paying a premium for sustainability.

✅ Look beyond the marketing—check actual energy efficiency ratings and building materials.

✅ Ask about body corporate rules—some sustainability features (like solar panels, EV charging and the fire suppression requirements) may be hard to retrofit later.

FAQS

1. What are the biggest benefits of buying a sustainable apartment?

Sustainable apartments offer lower energy bills, better indoor air quality, and improved climate resilience. Features like passive design, energy-efficient appliances, and better insulation can make living more comfortable while reducing costs in the long run.

2. Do sustainable apartments cost more to buy?

Yes, they can have a higher upfront cost, as they often use premium materials and technology like solar panels and water-saving systems. However, these features can lead to long-term savings on energy and maintenance costs, making them a smart investment over time.

3. How do I know if an apartment is truly sustainable and not just marketing hype?

Look for independent certifications like Green Star (by the Green Building Council of Australia) or NatHERS energy ratings. Also, check for practical features like double-glazed windows, high-efficiency heating/cooling systems, and smart water management.

4. Will a sustainable apartment have better resale value?

In many cases, yes. As energy prices rise and sustainability becomes a bigger factor for buyers, green-certified apartments may hold their value better. However, location, demand, and overall build quality are also key factors in resale value.

5. Can I install solar panels or other sustainable upgrades in an older apartment building?

This depends on strata regulations. Many apartment owners don’t have control over roof space or shared infrastructure, making upgrades like solar panels difficult. Look for buildings with body corporate support for sustainability initiatives.

6. Do sustainable apartments perform better in extreme weather events?

Yes, well-designed sustainable apartments use fire-resistant materials, better ventilation, and flood-proofing strategies to withstand extreme heat, bushfires, and heavy rainfall. However, no building is completely disaster-proof, so always check for additional climate resilience measures.

7. Are government incentives available for buying a sustainable apartment?

Some state and federal programs offer green home loans, energy efficiency rebates, and tax incentives for sustainable housing. These change over time, so it’s best to check government websites or speak to a mortgage broker.

8. Do sustainable features actually make a noticeable difference in my energy bills?

Yes. Apartments with high energy ratings, efficient heating/cooling, and good insulation can reduce electricity costs by hundreds of dollars per year. Buildings that incorporate solar panels, battery storage, or water-saving systems can offer even greater savings over time.

9. Are there downsides to buying a sustainable apartment?

The biggest downsides are higher upfront costs and the risk of green-washing (where sustainability claims are exaggerated). Also, some buildings may have strict body corporate rules that limit personal upgrades like EV chargers or extra insulation.

10. Should I prioritise sustainability over location and price?

Not necessarily. While sustainability features add long-term value, they should be considered alongside affordability, location, and lifestyle needs. A well-located apartment with good transport access and strong community amenities may sometimes be a better choice than a green apartment in an inconvenient area.

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