25 Feb 2025
More Australians will have access to homes that are cheaper to run, healthier to live in, and built for a changing climate with today’s launch of a new sustainability rating for apartments.
The Green Building Council of Australia (GBCA) has launched Green Star apartments, a new sustainability rating that independently verifies each apartment within a certified building — helping buyers, renters, and financiers make more informed decisions.
“With housing affordability at crisis levels, our cities growing denser, and climate pressures intensifying, the demand for apartments must be met with cost-effective and sustainable solutions,” says Green Building Council of Australia CEO Davina Rooney.
“The rating system we’re launching today will make it easier for developers to create generation-defining homes. It will help more Australians get their foot in the door in a way which not only saves them money – now and into the future – but also reduces our carbon footprint.”
New research also released today shows just how crucial green loans will be to take advantage of this major opportunity in the apartment sector.
A survey by Gateway Bank shows Australian buyers are predominantly driven by pricing considerations when looking to buy a sustainable apartment, but lack clarity on eligibility, incentives, and the benefits available to them.
When asked what potential features of a green home they found most attractive:
“We know that green finance is one of the key missing links we have when it comes to developing more sustainable apartments, because we know that cost is a key driver of buyers and renters.” says Ms Rooney.
“But the data also tells us that sustainability is increasingly influencing purchasing decisions. In fact, 81% of buyers now see sustainable property features as either ‘critical’ or ‘important’ in their decision-making.”
“The launch of Green Star apartments will help buyers and renters identify homes that align with these expectations, while also ensuring lower operating costs and improved liveability.”
Despite a growing list of lenders offering green loans for free-standing homes, the glaring absence of financial products for sustainable apartment loans reveals a market gap ready to be filled.
Gateway Bank has confirmed it will accept the Green Star Buildings - Apartments Pathway certification as part of its Green Home Loan eligibility criteria, with other lenders expected to follow suit.
"Sustainable apartments shouldn't come with a cost premium—they should be the standard," Ms Rooney said.
While a Green Star apartment may have a marginally higher upfront cost—just 1.3% or around $11,700 more to build—this initial investment is far outweighed by long-term financial benefits. Over 30 years, a Green Star apartment in Sydney could deliver nearly $111,000 in total financial gains through cheaper loans, lower energy costs, and higher appreciation.
Key financial benefits based on modelling for a $900,000 Sydney apartment with a $700,000 home loan include:
In just the first year, these benefits would amount to over $21,000, compounding to nearly $111,000 over three decades.
Green Star apartments will help lower carbon emissions, ease pressure on the energy grid, improve water efficiency, and ensure homes are more resilient with better insulation, natural ventilation, and protection against extreme weather.
Six industry leaders—Cbus Property, Frasers Property, Homes Victoria, Lendlease, Sentinel, and Stockland—partnered with GBCA to trial Green Star apartments in current projects, showcasing how sustainable apartment design can lower running costs, enhance comfort, and improve climate resilience for residents.
"We are proud to be part of this initiative because we know it will be game changer in helping more Australians access healthier, more liveable and more sustainable apartments,” says Adrian Pozzo, Chief Executive Officer of Cbus Property.
“As a first step we will be piloting the Green Star apartments pathway at our residential offering at 185 Wharf Street, Spring Hill, which will set a benchmark for sustainable apartment living while offering long-term cost savings for residents”.
"Green Star supports our commitment by providing an independent standard that gives buyers and investors greater confidence that their homes will be exceptional quality, comfortable, healthy, affordable to run, built for the future and importantly, enable people to live more sustainably," adds Mr Pozzo.
An example of this new approach is 185 Wharf Street, a Cbus Property development currently under construction in Spring Hill, Queensland. The project is piloting the Green Star apartments pathway as part of its Green Star Buildings certification, demonstrating how sustainability can be embedded at the earliest stages of design and development.
By incorporating energy efficiency, induction cooking, abundant fresh air and natural light, 185 Wharf Street will set a benchmark for sustainable apartment living.
Find out more
The Rise and Thrive report, developed by the Green Building Council of Australia and Gateway Bank, explores the financial and lifestyle benefits of sustainable apartments and the role of green finance in making them more accessible for Australians.
Growing demand
Shifting housing trends
Carbon footprint
Supply crunch