MARCH STRATA INSIGHTS 2023
Welcome to the March edition of our newsletter, where we bring you the latest information on the strata market in Australia. This month we delve into the growing trends, changing demographics and anticipated developments in the industry.
1. Overview
There has been continuous growth on Strata developments within Australia.
Since the demand for apartment living is still on the rise, the construction industry has had to keep up with increasing demands with building projects that have significant defective issues.
According to Strata Community Association Australia, there are more than 300,000 strata-titled properties in Australia. This figure is anticipated to increase dramatically over the coming few years as apartment living in major cities continues to rise.
2. Current Market Conditions
The strata industry is becoming more rigid due to several factors. This includes the upsurge in strata reinsurance costs, increase in the frequency of catastrophic weather conditions, challenging distribution costs as well as the poor policy structure.
3. Factors influencing the Market
Due to the extreme weather conditions we experienced in 2022, strata claims are occurring more frequently.
The rise in strata claims and expense has resulted in the increased strata rates and produced additional excess.
An Owner’s corporation will also pay higher premiums and excess due to their risky policies.
4. Future Outlook
It is anticipated that demand for strata plans will continue to rise. The increased desire for apartment living and the ongoing population growth in Australia are contributing factors of this trend.
The strata sector in Australia has a promising future, yet the industry will encounter challenges around rising energy costs, regulatory compliance and shifting customer expectations.
From the team at Premium Strata
Happy Harmony Day
Harmony Day is about inclusiveness, respect and belonging for all Australians, regardless of your ethnic background. This month, The Premium Strata team celebrates our cultural diversity and the values of inclusiveness, respect and belonging that we strongly hold.
From the team at Premium Strata, Happy International Women’s Day!
Much like Harmony day, Women’s Day is also a time for us to all come together, appreciate our differences and promote a sense of unity.
Premium Strata stands for providing equal opportunities to all staff members and recognizes the unique strengths each and every one of us holds.
UPDATE: Class 3 and 9c Buildings
Background
In 2020, the NSW government passed two laws to regulate the building and construction sector:
- The Design and Building Practitioners Act 2020 (DBP) – To guarantee that designs and construction activities comply with the Building Code of Australia
- The Residential Apartment Buildings Act 2020 (RAB) – Provided the NSW Building Commissioner extensive authority and empowered officers to initiate enforcement action against defects
What are Class 3 and 9c Buildings?
These restrictions now apply to all Class 3 and 9c Buildings when it was initially only applicable to Class 2 residential apartment complexes. Class 3 Buildings are frequently used by many unrelated people that live there temporarily or permanently. This includes a boarding house, guest house, hostel or backpackers.
What are these new changes?
The DBP and RAB Acts will now apply to only new building constructions classified as Classes 3 and 9c as of 3 July 2023.
Why are they introducing changes?
These modifications are intended to improve the safety and security of buildings. It also ensures the industry is more customer-focused and better data is captured around building projects.
Will this affect me?
You will be expected to provide statements regarding the building and design work, as well as the registration of Professional Engineers
You do not need to reapply if you are already registered under the DBP Act as a Design or Building Practitioner. You can submit declarations using your current registration
Requirements
As of 3 July 2023, these requirements are applicable to all new Class 3 and 9c structures:
- Design Practitioners, Building Practitioners and Professional Engineers must be registered under the DBP Act
- Plans must be compliant with the Australian Building Code and submitted to the NSW Planning Portal
- Builders are required to build in accordance with approved designs. Developers must also give notice and pay a levy before the completion of their project.
Awards
As a way to celebrate the efforts of the team, Premium Strata and Premium Building Management held an awards night session earlier in the year. We acknowledge the hard work and achievements of our dedicated staff members.
Congratulations to all our Winners!
- People’s Choice Award: Kerensa Smith
- Challenge Award: Leon Liang
- Google Reviews Award: Sandro Li Causi
- Appreciation Award: Oscar Lopez
- All-Star Award: George Malek
- Loyalty Award: Candace Xuereb
- PBM Diamond Class Award: Bill Swar
- PBM Appreciation Award: Joe Bakhos
We are also very proud to announce that Premium Strata was a 2022 finalist and Winner of the 2021 NSW Strata Community Association Management Business – Medium award at the Strata Community CHU Awards of Excellence!
