Home sustainability policy and mandatory disclosure

Abstract

Purpose -Sustainability Declarations were introduced by the Queensland State Government on 1 January 2010 as a mandatory disclosure measure for all dwelling sales in the State. The purpose of this paper is to assess the impact this policy decision has had in the homebuyer decision-making process in the first year since its introduction and to consider the effectiveness of the legislation in meeting its policy objectives. Design/methodology/approach -This quantitative research comprised a two-part process: the first stage surveyed the level of compliance by the real estate industry with the legislative requirements. Stage two comprised an online survey of Real Estate Institute of Queensland members to determine what impact the Sustainability Declaration has had on home buyer decision making and how effective the legislative mechanisms have been in achieving the policy objectives.Findings -This paper assesses the initial impact of this initiative over its first year in operation. These preliminary findings indicate a high level of compliance from the real estate industry, however results confirm that sustainability is yet to become a criterion of relevance to the majority of homebuyers in Queensland. Practical implications -These quantitative findings support anecdotal evidence that the objectives of the legislation to increase homebuyer awareness and relevance of sustainability issues in the home are not being achieved. Social implications -Sustainability Declarations are a first step in raising homebuyer awareness of the importance of sustainability in housing. Further monitoring of this impact will be carried out over time.Originality/value -This is the first research undertaken to assess the impact of this new mandatory disclosure legislation in Queensland, Australia. The findings will inform policy makers and assist them to assess the effectiveness of the current legislation in achieving its policy objectives.

Key Factors Influencing Purchase or Rent Decisions in Smart Real Estate Investments: A System Dynamics Approach Using Online Forum Thread Data

“…The attitude of agents not actively promoting sustainability features may affect potential sellers/buyers not realising the importance of choosing a home with sustainability features [70]. In this context, policy measures such as the mandatory disclosures of sustainability policy by the Queensland State Government in Australia are positive steps towards promoting a smart and sustainable real estate sector that can increase homebuyers awareness about sustainability and help them make better and informed decisions [71]. Further, in the current times of restrictions on physical inspections and social distancing, most of the control and information disclosure powers are in the hands of the agents, who can manipulate the data fed to consumers.…”

The Relevance of EPC Labels in the Spanish Residential Market: The Perspective of Real Estate Agents

“…Furthermore, Moore & Hurst [30], after interviewing households in Melbourne, concluded that attributes such as location, affordability, and the number of bedrooms/bathrooms were the main considerations in house selection, while sustainability was seldom indicated. In Queensland, Bryant & Eves [31] using surveys applied to realtors, assessed whether sustainability features were important in the house purchase decision; they found that 96% of buyers do not consider such attributes important in their decision-making process. The same conclusions were drawn in the study of Eves & Kippes [32] based on surveys to home buyers in New Zealand; aspects such as location and price were the buyers' main concerns, although energy-efficiency and green housing issues appeared as major concerns for the tier of younger and older buyers in the high-income brackets.…”