The Australian strata industry, managing $1.3 trillion in property value and generating over $7 billion annually in fees, is facing increased scrutiny following a series of investigative reports and independent reviews. In response to growing concerns, industry leaders are coming together to chart a more sustainable and reputable path forward.
Recent media coverage, including an article by Sue Williams in The Sydney Morning Herald and Linton Besser’s Four Corners investigations in 2024, has brought significant attention to the challenges within the sector. The release of an independent investigation into Netstrata by the NSW Department of Fair Trading has further intensified discussions about governance, transparency, and industry standards.
Stakeholders within the sector are taking proactive steps to address key issues and drive positive change. On Friday, a national roundtable will convene to explore emerging risks, identify gaps in understanding and research, and establish pathways for evidence-based improvement in strata management.
The initiative is led by sustainability, value, and innovation advisor Kate McHugh, alongside John Minns, former NSW Strata and Property Services commissioner. They have brought together a diverse group of stakeholders, including strata managers, lot owners, insurers, financers, lawyers, academics, and service providers, to collaboratively shape the future of the industry.
“A viable, profitable, reputable, and sustainable strata sector is in the Australian public interest,” said McHugh. “While there have been fair criticisms of some sector participants, there is also a lot of positive contribution from the sector to the lives of everyday Australians. Take, for example, the effort that has gone into managing apartment buildings during ex-Tropical Cyclone Alfred.”
Strata-titled properties, such as apartments and townhouses, now house at least one in six Australians, with a 7% growth in the number of properties over the past two years, according to UNSW’s City Futures Research Centre. With projections indicating that nearly half of Australians will live in strata properties by 2050, ensuring the sector’s resilience and integrity is critical.
The roundtable aims to promote a sector-led approach to improving professionalism, governance, and consumer confidence. A final report will be released following the event, outlining key findings, performance standards, and research priorities to support a robust and sustainable strata sector in Australia.
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