
Victoria is taking bold steps towards a more sustainable future, becoming one of the first states in Australia to introduce new building standards set to transform the apartment landscape.
Victoria ushered in a new era of sustainable urban development on May 1, 2024, when stringent 7-star energy efficiency ratings became mandatory for all newly constructed homes and apartments across the state. This push for sustainable apartments comes at a crucial time, as Melbourne’s population is projected to grow significantly in the coming decades.
Victoria’s new energy efficiency rating for buildings, up from 6 stars, marks a major improvement in thermal performance for new construction. For apartment dwellers, this means better insulation in walls, ceilings, and floors, high-performance windows, and thoughtful design considering orientation, sun access, and shading. These improvements will result in apartments that require less energy to heat and cool, leading to reduced energy bills and a smaller carbon footprint.
The new standards go beyond just improving the thermal performance of apartments. They introduce a “whole-of-home” annual energy use budget for fixed appliances, including hot water systems, heating and cooling, lighting, and pool and spa pumps. This holistic approach encourages developers and homeowners to choose energy-efficient appliances, further reducing overall energy consumption.
One of the most exciting aspects of the new regulations is the emphasis on renewable energy readiness. New apartment buildings will be required to ensure roofs are strong enough to support solar PV systems and provide infrastructure for electric vehicle charging in parking spaces. These provisions future-proof apartment buildings, making it easier and morecost-effective to install solar panels and EV charging stations as technology advances and demand increases.
Sustainable apartment living isn’t just about energy efficiency. Victoria’s broader sustainability push highlights the importance of green spaces and communal areas in apartment developments. These features not only improve residents’ quality of life but also contribute to urban cooling and biodiversity, creating more liveable and environmentally friendly urban spaces.
While the demand for sustainable apartments is growing, the industry faces challenges in meeting this need. However, this presents a significant opportunity for developers willing to embrace innovation and sustainability.
The build-to-rent sector and community housing providers are emerging as potential leaders in sustainable apartment development. Their long-term investment model aligns well with the benefits of sustainable building practices, potentially driving the entire industry towards greener standards.
As Victoria prepares to implement these new standards, the state is positioning itself at the forefront of sustainable urban development in Australia. By mandating higher energy efficiency standards, promoting renewable energy readiness, and encouraging thoughtful design, Victoria is creating a blueprint for the apartments of the future — homes that are comfortable, affordable to run, and kind to the planet.
The benefits of these new standards extend beyond individual apartments. By reducing energy consumption and promoting renewable energy, these measures will contribute significantly to Victoria’s overall efforts to combat climate change. The emphasis on green spaces and community areas in apartment developments will also help create more cohesive and liveable neighbourhoods, fostering a sense of community among residents.
Moreover, these sustainable apartments are likely to become increasingly attractive to buyers and renters alike. As awareness of environmental issues grows and energy costs continue to rise, homes that offer lower running costs and a reduced environmental impact will be in high demand.
This could lead to increased property values for sustainable apartments, providing an additional incentive for developers to exceed the minimum standards. The implementation of these new standards also presents an opportunity for innovation in the construction industry. Developers and builders will need to find new ways to meet these higher standards, potentially leading to advancements in building materials, construction techniques, and energy-efficient technologies. This could position Victoria’s construction industry as a leader in sustainable building practices, potentially opening up new export opportunities for local expertise and technologies.
For Victorians, this means a future where sustainable living isn’t a luxury, but the new normal. As these green apartments begin to dot the skyline, they’ll stand as testaments to the state’s commitment to a more sustainable, environmentally conscious, and resident-friendly future for all.