New research by PRD has revealed living within close proximity to renewable energy projects such as wind and solar farms has the ability to create a positive multiplier effect for local regions.

The Renewable Energy and Property Market report revealed six regions with renewable projects constructed in 2017 performed positively since the installation of renewable initiatives.

Over a period of five-years, the report detailed all six regions experienced a median price growth north of 35%, with the highest being Upper Lachlan in Victoria recording a five-year growth figure of 51%.

PRD Renewable Regions.JPG

PRD Chief Economist Dr Asti Mardiasmo said while residing within 100 metres of a renewable energy plant may not be ideal, the surrounding area strongly benefits through the drop in energy prices.

“While the fiscal growth solely from proximal plants is small - 3% across the properties' lifespan - it can significantly raise a region’s property value,” Dr Mardiasmo said.

"The average price growth over the past one, two, and five years has been 6.5%, 7.8%, and 41.0%, according to data on previous renewable energy projects.

"This is largely because rising inflation and economic growth have increased living expenses, making any decrease in expenses especially power, a significant deciding factor when choosing where to buy real estate."

Electricity prices are tipped to increase a minimum 35% in 2023 having already increased 25% since April, which may add another spanner in the works for potential homebuyers when considering the region they look to call home. 

Which regions will receive a boost from future projects?

PRD revealed the regions of Melton and Greater Bendigo in Victoria, and Upper Lachlan and Lithgow in New South Wales are forecast to offer the greatest growth over the next five years based on future renewable projects. 

Tailored to these regions, planned projects in Victoria include Willatook Wind Farm and Melton Renewable Energy Hub both worth $800 million, while Merriwa Solar Farm in New South Wales is worth $1.61 billion. 

PRD Future Renewable Projects.JPG

Recent research by InvestorKit revealed the markets of Rockhampton, Toowoomba, Tamworth-Armidale, Dubbo, and Latrobe Valley are anticipated to be next to receive a boost following major renewable projects. 

Founder and head of research at InvestorKit Arjun Paliwal noted each renewable energy project creates hundreds, and even thousands of jobs, particularly in its construction phase.

“This will see increased demand for housing in regional areas, a revitalisation of regional surrounding towns as new ‘locals’ bring money to hospitality and retail businesses, and an overall strengthening of its property market," Mr Paliwal said.

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Building or buying an energy-efficient home? This table shows some of the lowest interest rates in the market for 'green' home loans.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.99% p.a.
6.44% p.a.
$2,995
Principal & Interest
Variable
$0
$530
90%
  • No application, ongoing monthly or annual fees.
  • Available for refinance or purchases. Quick and easy online application process.
  • Dedicated loan specialist throughout the loan application.
  • Discounted interest rate for 5 years for homes with an eligible solar system
 Disclosure
5.84% p.a.
5.89% p.a.
$2,947
Principal & Interest
Variable
$null
$null
60%
5.82% p.a.
5.82% p.a.
$2,940
Principal & Interest
Variable
$0
$0
80%
5.84% p.a.
5.89% p.a.
$2,947
Principal & Interest
Variable
$0
$500
60%
5.68% p.a.
6.26% p.a.
$2,896
Principal & Interest
Variable
$350
$0
90%
5.85% p.a.
6.14% p.a.
$2,950
Principal & Interest
Variable
$299
$0
80%
5.44% p.a.
6.26% p.a.
$2,820
Principal & Interest
Fixed
$350
$0
90%
6.14% p.a.
6.85% p.a.
$3,043
Principal & Interest
Variable
$0
$720
90%
7.64% p.a.
–
$3,544
Principal & Interest
Variable
$25
$0
70%
6.19% p.a.
6.53% p.a.
$3,059
Principal & Interest
Variable
$0
$530
90%
90% LVR
  • Discounted interest rate for 5 years for homes with an eligible solar system
  • Available for refinance or purchase
  • No monthly, annual or ongoing fees
 Disclosure
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Tom Swinnen via Pexels



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