Victoria’s building regulations are evolving to create safer, more energy-efficient homes — and while that’s positive for long-term sustainability, it also means new responsibilities for property investors.
Whether you own a new build, a renovation project, or an established rental home, understanding these standards is essential to protect both your property value and compliance record.
1. The Big Picture: NCC 2022 Changes Now in Effect
As of 1 May 2025, all new residential buildings and major renovations in Victoria must comply with the updated National Construction Code (NCC 2022).
This includes higher expectations for energy efficiency, liveability, and accessibility, aligning with national sustainability goals.
Key points for property owners:
- 7-Star Energy Rating under the Nationwide House Energy Rating Scheme (NatHERS)
→ New homes and apartments must achieve 7 Stars instead of the previous 6. - Whole-of-home energy assessment
→ Heating, cooling, hot water, lighting, and onsite renewable energy systems (e.g. solar) are now included. - Improved accessibility standards
→ Requirements for step-free entry, wider doors, and reinforced bathroom walls in Class 1 and 2 buildings.
If you plan to develop or significantly renovate an investment property, these changes will directly impact your design, build cost, and timeline.
2. Why It Matters for Investors
Higher Build and Renovation Costs — but Better Market Appeal
Upfront construction expenses may rise by 5–10%, mainly due to improved insulation, glazing, and energy systems.
However, these enhancements can increase your property’s rental appeal, lower utility costs for renters, and support long-term capital growth.
Improved Long-Term Asset Value
Energy-efficient homes consistently achieve stronger resale value and lower vacancy rates, especially as renters and buyers increasingly seek sustainable living.
Insurance and Compliance Implications
Failing to meet updated standards can affect building approval or insurance coverage.
It’s crucial to confirm your builder or developer is fully aligned with the latest NCC and Victorian Building Authority (VBA) requirements.
3. How It Affects Existing Investment Properties
If your property was built before these new rules, you don’t need to retrofit immediately — but expect renter expectations and future compliance updates to trend in the same direction.
Simple upgrades like LED lighting, insulation top-ups, or solar panels can help your property stay competitive and energy-efficient.
4. Future Trends to Watch
- Net-Zero Readiness: Future codes are expected to introduce pathways toward zero-emission housing.
- Mandatory Energy Disclosure: Landlords may soon need to disclose energy-efficiency ratings at lease or sale.
- Increased Demand for Sustainable Rentals: As energy costs rise, renters increasingly prefer homes with lower running expenses.
Investors who act early will position their properties as the first choice in a more sustainability-conscious market.
The new Victorian building standards mark a shift toward a cleaner, more efficient housing future.
While they may raise initial costs, the payoff is stronger long-term performance, higher renter satisfaction, and reduced maintenance over time.
