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Green star buildings offer better investment returns

On Sep 06 2012
Tagged as:
  • NSW


Property investors looking to make an addition to their real estate portfolio should look no ...

Property investors looking to make an addition to their real estate portfolio should look no further than green star certified buildings in Sydney and Melbourne, one report suggests.

The Australian Green Property Investment Index revealed Sydney and Melbourne green-star rated projects delivered higher property investment returns compared with other buildings.

According to findings, superior capital growth drove higher investment yields in green-star and energy efficient buildings, with Sydney recording a return of 12 per cent in the financial year to June - outperforming the market by 9.2 per cent, which equated to a 6.3 per cent growth.

In comparison, Melbourne's green star buildings outperformed the sector by 10.9 per cent, driven by a capital growth of 4.2 per cent.

With more and more emphasis on sustainability, savvy buyers may be interested in environmentally friendly commercial property investment in the country's most populated cities.

"This latest report adds to the growing body of evidence which confirms that green star-rated buildings deliver a range of quantitative and qualitative benefits," Green Building Council of Australia chief executive Romilly Madew explained.

"The business case for green star continues to stack up."
The report also revealed that tenants were more partial to eco-friendly buildings - boosting rental yields, which improves investment returns.



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