The latest NZGBC research informing policy, advocacy, and ultimately sustainable homes and buildings in Aotearoa
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We are proud to release our first ever Green Star Impact Report - a key document highlighting some of the significant strides made in promoting sustainable building practices across New Zealand, and showcasing some of the incredible mahi being done by industry.
October 2024
Buildings with sustainable credentials like Green Star and NABERSNZ command higher rents and are more valuable, according to a new report by leading real estate services company JLL.
The first of its kind in New Zealand, the report ‘Turning green to gold: The impact of green certification on rental yields, cash flows, and values’ analysed data on all Green Star and NABERSNZ certified office buildings across Auckland, Wellington, and Christchurch, and compared them to buildings in the JLL datasets.
“We know from similar studies in Australia, Europe and the United States, that green assets command a premium and there is emerging evidence in some locations of a brown discount emerging. This new report shows that the premiums associated with high performing green certified office assets holds true in New Zealand,” says report author Dr Georgia Warren-Myers, JLL’s Head of ESG and Risk – APAC.
The study reveals that properties with Green Star certification command a premium in terms of rental rates and sale prices. Buildings with both Green Star certification and high NABERSNZ energy ratings command an additional premium while experiencing lower vacancy rates.
Key findings from the study include:
Green Star certified properties consistently demand a sales premium, ranging from a 3.7% premium for a 4 star Green Star rated building, through to 7.5% uplift for 6 star Green Star buildings.
The rental premium increases incrementally with higher star ratings, from 1.5% for 4 star Green Star rated buildings, through to 2.25% for 6 star Green Star rated buildings.
Buildings with both Green Star and NABERS certifications have the highest occupancy rates and the lowest vacancy rates.
The higher the certification level, the larger the uplift in both rental rates and sale prices compared to non-certified buildings. Buildings boasting the highest possible 6 star Green Star and NABERSNZ ratings command almost 10% premium on sales prices (9.8%), and 6.7% rental premium.
“We know globally there’s growing interest and demand from investors for well-positioned premium assets that have the green credentials that align with their ESG strategies. Clearly, New Zealand’s market is no different.”
In welcoming the report findings, the New Zealand Green Building Council chief executive, Andrew Eagles, says the report is an important milestone for New Zealand’s real estate market.
“Green buildings and sustainability are crucial for meeting global targets, achieving the goal of making all buildings net-zero carbon emissions by 2050 and ensuring a healthier more resilient built environment to deal with the challenges ahead,” Andrew Eagles says.
“We know green buildings are a win for the environment, they often boast healthy, productive, efficient spaces for the occupants. This report now reinforces that it’s a win for building owners, developers, and investors too.”
Dr Georgia Warren-Myers highlight that “Recent updates to the International Valuation Standards means ESG will be more explicitly considered by valuers in the process of a valuation. These types of certifications assist in clearly documenting and communicating the ESG credentials of the asset whilst also providing transparency and third party verification. This will likely have implications for how ESG is considered by owners, developers and investors and the implications this may have in valuations.”
The full report was released and discussed at the Green Property Summit on the 14th August at the Aotea Centre, Auckland.
This guidance aims to assist lenders and borrowers with defining what is a green building for the purpose of sustainable finance. It is not binding and parties are free to depart from it in determining their own terms. It is not intended to be comprehensive and answer every issue that may arise in a sustainable finance transaction for green buildings. However, we consider that there is value in providing a common standard to grow the sustainable finance market.
The guidance anticipates that the requirements on green buildings will increase over time as the sector seeks to improve its sustainability outcomes and contribute to Aotearoa New Zealand's climate goals.
August 2024
Improving buildings could save New Zealand almost $40 billion and slash emissions equivalent to taking half of New Zealand’s petrol cars off the road.
A new report just released by the New Zealand Green Building Council (NZGBC) shows introducing policies to improve building standards, phase out gas, and make energy use transparent could save 93,000kt of emissions by 2050.
The guide, adapted with support from Beca, it aims to demystify how projects can identify, reduce and report on the emissions associated with materials and the construction of new buildings.
The report includes a comprehensive framework for how to select materials and products to slash a building’s footprint right from the design stage, as well as how to set feasible emissions reductions targets for the project.
December 2023
This report by leading economic analysts BERL examines the impact for Aotearoa if new homes and buildings are constructed to be less polluting.
The report found low carbon homes would contribute a $150 billion boosts for the economy, and could support an additional 46,000 jobs each year between 2025 and 2050.
BERL, September 2022
This Ratings Snapshot provides an overview of
the different rating tools available in Aotearoa
and their key objectives, scope, governance and
assessment processes.
New Zealand Green Building Council & Property Council New Zealand, September 2022
This landmark report outlines the significant milestones the government and industry must achieve to decarbonise New Zealand’s buildings by 2050. These include an improved Building Code, significantly increased transparency around the energy-efficiency of buildings, and a call for key government ministries and departments to lead a revolutionary shift in green buildings.
New Zelaand Green Building Council, September 2019
This document goes some way towards
detailing clearly the compelling
value proposition for certified green
buildings in New Zealand through the
consolidation of international findings,
reinforced with local examples.
December 2020
This report evaluates the potential to decarbonise New Zealand’s building and construction sector, with a focus on embodied emissions from now until 2050.
The report identified strategies to reduce emissions by approximately 1,200 kt CO2e per year:
equivalent to taking 460,000 passenger cars off the road permanently and 15% of New
Zealand’s total light vehicle fleet.
thinkstep ANZ, August 2019
This groundbreaking report outlines the New Zealand built environment's emissions.
Analysis by thinkstep anz found the built environment contributes up to 20% of New Zealand's emissions when adjusted for the carbon footprint embodied in our exports (dairy, meat, etc.) and our imports (cars, trucks, clothes, etc.)– a value that highlights the built environment as a key hotspot in our national carbon footprint.
thinkstep ANZ, May 2018
This paper shows that improving 120,000 New Zealand homes to the healthy standards that Kiwis deserve would deliver a net benefit of $1.5 -$3.1 billion, an economic stimulus, lower carbon emissions, improve health outcomes and help kick-start a just transition by creating over 1,000 new jobs.
May 2020
Leading experts in the construction and property sector have released three comprehensive climate change scenarios to guide the industry on how they assess and report on what climate change means for their business
This report outlines the evidence of what programmes are being tried internationally to retrofit homes. Taking the investigation further, this report also forecasts how the economy might react if a large retrofit programme were to be implemented in Aotearoa New Zealand.
BERL & Building Research Associate of New Zealand (BRANZ, March 2023
This report provides a review the typical specifications required to achieve a 6 Homestar v5 rating and how this compares with specifications required to achieve NZ Building code (NZBC) Clause H1 compliance. Quantity surveyors Kwanto also provide an estimate of costs
Aurecon & Kwanto, February 2023
This guide outlines the steps involved in retrofitting existing buildings to be all-electric and what technologies can be used today to replace natural gas systems.
New Zealand Green Building Council & Green Building Council of Australia, May 2023
This guide has been developed for all those involved in healthcare projects that aim to achieve a Green Star Design & As Built NZ v1.0 rating, including building owners, Green Star Accredited Professionals, and contractors etc.
It provides additional information to support buildings such as public and private hospitals and aged care facilities targeting a Green Star – Design & As Built NZ v1.0 rating.
New Zealand Green Building Council, March 2022
This report by consultants Sense Partners explores policy options to improve energy efficiency of existing commercial buildings, consistent with the Climate Change Commission’s recommendation to implemented measures to improve the energy performance and reporting of energy intensity of existing buildings by 31 December 2022
Sense Partners, October 2021
This Guide enables tenants and landlords to create better performing, more energy efficient buildings. A joint initiative between government and industry, it was developed by EECA, lawyers DLA Piper New Zealand, and NZGBC.
The model clauses are designed to insert directly into lease agreements, and cover issues of:
co-operation between tenants and landlords
energy use, water and waste
quality of the indoor environment
use of rating tools such as Green Star and NABERSNZ.
The Guide was adapted from a resource produced by Sydney’s Better Buildings Partnership (BBP), a government/ industry initiative.
As Australia and New Zealand increase their efforts to tackle climate change, our governments must find ways to reduce carbon emissions, energy and water use and waste, while still providing high quality, cost-effective social infrastructure – the buildings and spaces that facilitate the delivery of social services by governments and other service providers.
New Zealand Green Building Council & Green Building Council Australia, May 2021
Industrial buildings, such as warehouses and cold-store facilities, play a key logistical role in the smooth running of national and regional economies. It’s vital that these assets are future-proofed for the impacts of a changing climate and a low carbon economy.
New Zealand Green Building Council & Green Building Council Australia, August 2020
The evidence is in. The co-benefits and financial savings of designing, building and
operating greener hospitals are significant and we have an industry ready to work with
the healthcare and aged-care sectors to deliver better facilities.
New Zealand Green Building Council & Green Building Council Australia, September 2018
