Benefits for banks, buyers and the environment: Neometro shares its sustainability insights
With national news evoking fresh concerns about climate change, Melbourne-based developer Neometro have shared the benefits of investing in sustainable projects.
While Savills has earmarked the growing importance of environmental credentials in real estate to attract investors, the benefits of developing sustainable projects are proving to be far more all-encompassing.
According to Neometro director James Tutton, sustainable development can set a project up for success from the get-go.
From reducing risk at both the planning and settlement stages, to meeting consumer demands, Neometro has distilled these benefits across three areas.
1. Planning risk
What was once somewhat limited to anecdotal discussions with Council planning officers, the concept of rewarding projects with high ESG aspirations is translating into real policy, and it’s something several municipalities have taken on board.
Some councils, such as City of Moreland, have designed excellence scorecards to reward project applications which seek to achieve a high sustainability score.
Considering this upfront allows for better planning and better certainty, Tutton argues.
“It’s reassuring being able to approach a project with certainty, knowing VCAT isn’t going to pull the rug out from under you,” he said.
2. Settlement risk
Purchaser mortgage choices have opened up for projects which achieve pre-established sustainability criteria.
“Traditionally, investment decisions scrutinise financial data alone, and now we’ve seen a shift towards investors and buyers demanding we look at the bigger picture,” Tutton said.
Neometro noticed many purchasers going with non-major banks that reduced interest rates the better a building performed when selling its Jewell Station apartments in Brunswick.
“Giving purchasers more mortgage options with competitive pricing increases the likelihood of them being approved for purchase, and therefore diminishes settlement risk and the nervousness that often comes with this time”, he told Urban.
3. Consumer demand
“There’s no denying sustainability is a strong selling tool, the demand is out there”, Tutton said.
Consumers are making socially and environmentally conscious decisions when it comes to everyday purchases, and the developer claims that property is no different.
Across every industry, organisations are stepping up to meet the demands of increasingly informed and savvy consumers.
“As developers, we have a real opportunity to meet that demand while simultaneously supporting the need for greater sustainability within our community and being profitable,” Tutton said.
In every marketing campaign across its stable of projects, Neometro noted that messaging with a focus on sustainability performed the strongest.
Sustainable projects on Urban.com.au
Coming off the recent success at its South Crescent development, which sold in less than a week, Neometro have exemplified the desirability of sustainability-driven projects.
The group become Australia’s first property developer to achieve B Corporation certification in 2013, making them one of the nation’s leaders in delivering sustainable buildings.
Urban takes a look at three sustainable projects that owner-occupiers and investors should keep an eye on.
1. One Wilson Avenue, Brunswick
Address: 1 Wilson Avenue, Brunswick VIC 3055
One-bedroom apartments from $515,000
Future-focused and carefully crafted, this Brunswick development is delivered in collaboration between Neometro and Milieu.
The project integrates renewable energy and has received a 7.5-star NatHERS rating.
Designed by Fieldwork, the project references the brutalist post-war buildings of the Brunswick area, and connected to a wide range of amenities and sprawling parklands.
2. Omnia, Moorabbin
Address: 4-6 Horscroft Place, Moorabbin VIC 3189
One-bedroom apartments from $465,000
As part of the developer’s commitment to environmental sustainability, Omnia uses the best materials and technologies in environmental and sustainable building methods.
Delivered by Shenfield Property, the 40-apartment development’s park frontage adds to the growing number of green spaces in the area.
Featuring energy-efficient design, together with appealing gardens created by Wallbrink Landscape Architecture, Omnia delivers exciting new residences with comfort and style.
3. The Fabric, Altona North
Address: 188-198 Blackshaws Road, Altona North VIC 3025
Two-bedroom townhomes from $695,000
The Fabric, designed for liveability and increased comfort year-round, boasts a seven-star NatHERS energy rating.
Delivered by Mirvac, the Altona North development commits to contributing to a more sustainable future.
Leafy green tree-lined streets, contemporary architecture and private front gardens form the walkable master-planned community.
Renowned landscaping architects, Eckersley Garden Architecture, have designed courtyards with edible planter beds and a custom-designed Patchwork Park.
