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Buying a new apartment should feel exciting. You walk through the display suite, imagine where the couch will go, picture the morning coffee on the balcony and, hopefully, start thinking about what life will look like once the keys are finally in your hands. What you probably don't imagine is discovering a serious building defect five years later. Unfortunately, that's the reality some apartment owners have faced. Waterproofing problems, structural issues and other serious defects can take years to appear, and when they do, working out who is responsible, and who is going to pay, can become a long and frustrating process. NSW is now taking a different approach. The NSW Parliament has passed legislation introducing a new 10-year defect insurance framework for eligible new apartment buildings. The legislation is expected to commence once it is formally proclaimed, marking an important shift in how serious defects may be managed in the future. For apartment buyers, it could mean greater peace of mind. For developers, it represents another important change to the way new projects are designed, constructed and brought to market. So, what exactly is changing? At its simplest, the new model is designed to provide up to 10 years of protection for serious defects affecting important parts of an apartment building. That can include areas such as the building's structure, waterproofing and fire safety systems. The big difference is not just the length of protection. It's the way the insurance is intended to work. Rather than an owners corporation first having to spend years establishing who is legally responsible for a defect, the insurance is designed to provide a first-resort pathway for eligible claims. In other words, the focus shifts from: "Who is at fault?" to: "Is there a serious defect covered by the policy, and how do we fix it?" That is a pretty significant change. And for anyone who has ever been involved in a major building defect dispute, it's easy to see why. Why should apartment buyers care? There is a simple reason. Buildings don't always reveal their problems straight away. A waterproofing issue might sit quietly behind a wall for years. A structural problem may only become apparent as the building ages. A defect that wasn't obvious when you collected the keys could become a very expensive problem later. That's why the length of protection matters. Under the new model, eligible buildings can have insurance protection (Decennial Liability Insurance) extending for up to 10 years, rather than relying solely on the existing building bond arrangements. The protection is also intended to stay with the building. That matters because the person making a claim years later may not be the person who originally bought the apartment. You could buy a brand-new apartment today, sell it in three years and move on. The next owner doesn't simply lose the building's protection because ownership has changed. The insurance is about the building and the eligible defects affecting it. But 10 years doesn't mean everything is covered This is an important distinction. "10-year defect insurance" sounds reassuring, but it shouldn't be interpreted as a 10-year warranty covering every problem an apartment might ever have. It is designed around serious defects affecting specified building elements and is subject to the terms and conditions of the relevant policy. Normal wear and tear, maintenance issues and every minor defect that pops up around an apartment aren't suddenly the insurer's responsibility. That's why buyers should still do their homework. If you're purchasing a new apartment, ask questions about the building's defect insurance. Find out who the insurer is, what is covered, when the policy starts and what conditions apply. And just as importantly, don't let the existence of insurance replace good old-fashioned due diligence. A well-designed building, a reputable developer and a quality construction team still matter. A lot. What does this mean for developers? For developers, this change isn't simply another box to tick. It could influence the way projects are planned from the very beginning. The insurance model places greater emphasis on quality assurance, design and construction standards, and having the right documentation in place. That makes sense. Insurance is there to provide protection when something goes wrong. But nobody in the apartment industry wants to build a defect, insure it and then spend years fixing it. The better outcome is to prevent the defect in the first place. This is one of the interesting aspects of latent defects insurance already available in the market. Resilience Insurance, for example, describes its product as providing 10 years of protection against major structural defects, alongside independent technical assessments and audits during the design and construction process. The message for developers is fairly simple: Quality matters. And increasingly, the process used to demonstrate that quality matters too. What happens if the builder disappears? This is where the new model could become particularly valuable. Imagine buying into a new building and discovering a serious defect six years later. Then imagine finding out the original builder has gone into liquidation. Under a system based heavily on establishing liability, that can create an enormous headache for an owners corporation. The new insurance model is intended to provide another pathway. If an eligible serious defect occurs, owners can potentially look to the insurance rather than relying entirely on the financial strength or willingness of the original developer or builder to fix the problem. That doesn't mean every claim will automatically be paid. It does mean there is intended to be a more direct safety net behind the building. And that is a positive thing for apartment owners. A new question for apartment buyers For years, buyers have been encouraged to ask the usual questions when purchasing a new apartment. Who is the developer? Who is the builder? What's the location like? What are the strata levies? What are the inclusions? What's the rental return? Soon, there may be another question worth adding: "What defect protection does the building have?" That's a good question whether you're buying your first apartment, downsizing, investing or purchasing off the plan. Ask to see the details rather than simply accepting a statement that the building is "covered". Understand what the policy covers and, just as importantly, what it doesn't. Because when you're spending hundreds of thousands or potentially millions of dollars on a property, knowing what happens if something goes wrong is just as important as knowing what happens if everything goes right. And what about strata? This is where the change becomes particularly interesting for us. A new building doesn't stop being new just because the developer hands over the keys. In fact, that's when the building's next chapter begins. The owners corporation takes on responsibility for managing the common property, planning for the future and making sure the building remains a place people are proud to call home. Defect management can be a big part of those early years. Good strata management means keeping the right documents, understanding the building's obligations and insurance arrangements, identifying issues early and helping the owners corporation navigate what can sometimes be a complicated process. The new insurance framework doesn't remove those responsibilities. If anything, it makes good management even more important. A better safety net for apartment living Sydney is building more apartments. As our city becomes denser, more people are choosing apartment living and more families are making significant financial investments in strata communities. That makes confidence in apartment construction increasingly important. The introduction of 10-year defect insurance won't solve every problem in the apartment industry. It won't eliminate defects. It won't replace good developers, good builders or good strata management. But it could give owners something that has sometimes been missing when serious defects emerge: certainty about where to turn. For developers, it creates another incentive to get quality right from day one. For buyers, it provides another layer of protection to consider before purchasing. And for strata communities, it could mean a clearer path forward when something goes wrong. That's a positive step. Because buying an apartment isn't just about buying four walls and a front door. It's about buying into a building, a community and a shared future. And knowing that the building has a strong safety net behind it can make that future feel a little more secure. At Compass Strata, we believe informed owners make stronger communities. Understanding how your building is protected, not just when you move in, but for the years that follow, is an important part of successful strata living. Get the right strata partner from day one. Talk to Compass Strata today. Disclaimer: The NSW legislation has passed Parliament, but at the time of writing the new framework is still awaiting formal commencement/proclamation. Requirements, eligibility and implementation details should therefore be confirmed as the NSW Government finalises the scheme. This article is general information only and is not legal, financial or insurance advice.

Census night is Tuesday 11 August, and if you live in an apartment, this one counts more than you might think. Every five years, the Australian Bureau of Statistics (ABS) counts every person and every home in the country. It sounds like a bureaucratic exercise, and sure, there's a form involved, but the data that comes out of it shapes everything from where new train stations get built to how much funding your local council receives for parks, footpaths, and community services. If you've ever wondered why your suburb got a new playground or why a bus route was extended, there's a good chance Census data was behind that decision. For those of us living in strata, the Census paints a fascinating picture of who we are, how we live, and where apartment living in Sydney is heading next. Sydney: Australia's Apartment Capital Let's start with the numbers, because they're genuinely striking. About 45 per cent of all Australians who live in high-rise apartments live right here in Greater Sydney. That's roughly 247,000 people across nearly 120,000 apartments in buildings of nine storeys or more. The 2021 Census was actually the first time the ABS counted building height and Sydney came out on top by a wide margin. Zoom out a little further and the picture gets even bigger. Across NSW, there are now over 1.07 million strata lots, and approximately 1.28 million people live in private apartments. Nationally, 4.2 million Australians or about 15 per cent of the population call a strata property home. That's up 200,000 in just two years. Sydney's apartment share has grown from 10.2 per cent of all dwellings in 2011 to 16.7 per cent by 2021. That's not a slow drift. That's a structural shift in how an entire city lives. Greater Sydney City of Sydney LGA Median age 37 34 People per household 2.7 1.9 Renting privately 30.4% 53.7% Bachelor degree or above 33.3% 52.6% Lone person households 23.2% 41.1% Cars per dwelling 1.7 0.8 So Who Actually Lives in These Buildings? Here's where it gets interesting and where a few myths start to fall apart. The old assumption was that apartments are for young singles who eventually "graduate" to a house in the suburbs. And yes, 47 per cent of apartment residents in NSW are aged 20 to 39. But that's only part of the story. One in four apartments in Greater Sydney is home to a family with children. That's not a niche trend. That's hundreds of thousands of kids growing up in strata communities, using shared lifts, playing in communal courtyards, and relying on nearby parks because they don't have a backyard. Then there's the cultural picture. In NSW apartments, only 41 per cent of residents were born in Australia, and less than half speak English at home. Walk through the lobby of almost any Sydney apartment building and you'll hear Mandarin, Arabic, Vietnamese, Hindi, Korean, sometimes all before you reach the lift. It's one of the things that makes apartment living in this city genuinely unique. And the lone-person household is now the single most common household type in NSW apartments at 35 per cent. In the City of Sydney, it's a staggering 41 per cent. These aren't just students. They're professionals, retirees, divorcees, and people who simply prefer living solo in a well-connected location. The Practical Side: Census in a Secure Building If you live in a building with security access, you might be wondering how the Census actually works. Most residents will receive a letter in the mail with instructions to complete the Census online. Easy enough. But after Census night, ABS field staff may need to follow up with households that haven't responded and that means they'll need access to your building. Under the Census and Statistics Act 1905, authorised Census officers can enter secure apartment buildings. The ABS works with strata managers and building managers ahead of time to arrange access, typically between 8am and 8pm on weekdays. All keys and fobs provided are managed under strict protocols and returned once Census activities wrap up (usually by the end of September). Reminder: the Census is compulsory. Fines can reach $364 per day for non-completion. So whether you do it online the moment your letter arrives or on the night itself, just make sure it gets done. Looking Ahead: What Will the 2027 Data Tell Us? The first release of 2026 Census data is expected in June 2027. Based on the trends we've been tracking, here's what we expect to see, and what apartment owners and strata committees should be watching for: More apartments, more people in them. The number of occupied apartments grew by more than 20 per cent in the five years to 2021. With Sydney's underlying demand requiring 16,000 to 19,000 new apartments per year, and forecast supply sitting at just 10,000, It's expected the 2026 data to show even greater density and occupancy pressure. The "forever apartment" is becoming real. As house prices remain out of reach for many (Sydney's median house price is tracking toward $1.9 million), more families and older Australians are treating apartments as permanent homes rather than temporary stops. The Census will show whether household composition in apartments is shifting meaningfully e.g. more kids, more retirees, fewer transient renters. Commuting patterns will reshape building amenities. If active transport surges (walking, cycling, e-bikes), strata schemes will face growing pressure to provide secure bike storage, e-bike charging stations, and end-of-trip facilities. The data may give committees the evidence they need to justify capital works in these areas. Diversity data will matter for community building. With expanded ancestry questions and new demographic categories, committees will have a richer understanding of who lives in their buildings. That's useful for everything from communication strategies to event planning to ensuring by-laws are culturally sensitive. Why It Matters for Your Building At the end of the day, the Census is a tool. The data it produces shapes where governments spend money, where developers build, and how services are delivered to your neighbourhood. Every apartment that gets counted accurately is a vote for better infrastructure, better planning, and better outcomes for high-density communities. As Sydney's apartment sector continues to grow, well-managed buildings with proactive committees and sound governance will stand apart. Compass Strata works alongside owners corporations to stay ahead of these changes, strengthen building performance, and plan with confidence for whatever the data reveals next. If you'd like to see how we can support your scheme, get in touch today.

When evaluating the long-term capital growth of Sydney apartments, one critical factor often goes unnoticed: the ratio of owner-occupiers to investors in the building and surrounding area. Recent data reveals a striking reality for unit markets. Areas dominated by owner-occupiers have significantly outperformed investor-heavy areas in capital growth. For Sydney apartment owners, strata committees, and investors, understanding this dynamic is essential for protecting and enhancing building value. The Ownership Effect: What the Data Reveals A comprehensive report by Cotality highlights a compelling divergence in the Australian unit market. Between 2010 and 2026, units in owner-occupier areas grew approximately 99% in value, compared to just 65% in investor-heavy areas. This represents a substantial 34 percentage point gap. To put this into perspective, based on the national median unit price of $436,000 in January 2010, a property in an owner-occupier area would have delivered around $148,000 more in capital growth than one in an investor-heavy area. The report notes that this divide is particularly pronounced in major unit markets like Sydney, where high rental-ratio clusters often align with weaker five-year returns, especially in many inner areas. Why Rental Mix Matters for Sydney Apartments The disparity in capital growth can be attributed to distinct behavioral differences between owner-occupiers and investors. The Cotality report outlines three primary drivers: First, owner-occupiers pay for lived value. They are purchasing a home, not just an asset. Consequently, they are willing to pay premiums for lifestyle amenities such as proximity to quality schools, walkability, and reliable transport. Investors, conversely, focus primarily on rental yield and financial returns, which often constrains how much they are willing to pay, thereby capping price growth in investor-dominated areas. Second, the unit market is highly susceptible to rapid supply changes. Developers tend to build new apartment towers in areas where investor demand is already strong. This influx of supply can quickly saturate the market, suppressing capital growth. Finally, a rising rental ratio, meaning an increasing proportion of properties being rented out rather than owner-occupied, serves as a crucial early warning signal. As investor concentration grows, the market becomes more sensitive to changes in sentiment, credit conditions, and supply. It is important to note, however, that while the report identifies a strong correlation, the rental ratio is a useful signal rather than definitive proof of causation. Implications for Strata Committees and Owners For strata committees and apartment owners in Sydney, these findings carry significant practical implications. A high concentration of investors can expose a building to greater capital growth risk and reduced resale liquidity. Furthermore, investor-heavy buildings are often more sensitive to broader economic shifts, such as changes to negative gearing or capital gains tax policies, as well as local oversupply issues. The governance and presentation of a strata building play a pivotal role in attracting and retaining owner-occupiers. Buildings that are poorly maintained or lack community focus are more likely to see an exodus of owner-occupiers, leading to an increased rental ratio and subsequent downward pressure on property values. Conversely, proactive strata management that prioritises the lived experience can cultivate a strong owner-occupier base, thereby supporting long-term capital growth and building resilience. Concrete Steps to Protect Your Building's Value To actively manage these risks and enhance the appeal of your building to owner-occupiers, Compass Strata recommends the following strategic actions: Track local trends: Monitor your area's rental ratio and keep an eye on nearby high-density developments that could impact supply. Upgrade common areas: Prioritise high-impact improvements to shared spaces, such as the lobby, lifts, and landscaping, to enhance the building's lived value. Enhance community and security: Implement robust security measures and community-focused programs that make the building an attractive place to live long-term. Maintain proactively: Execute planned capital works and proactive maintenance to avoid the pitfalls of deferred maintenance, which deters owner-occupiers. Communicate transparently: Foster open communication within the owners-corporation and keep in touch with market-focused sales agents. By focusing on these areas, strata committees can positively influence the building's appeal, helping to maintain a healthy balance of owner-occupiers. Secure Your Building's Future Understanding your building's position within the broader market context is the first step toward safeguarding its value. The data is clear: cultivating an environment that appeals to owner-occupiers is a proven strategy for long-term capital growth. Contact Compass Strata for experienced-led effect strata management that protect and grow your building’s long term value.

Inform the owners corporation about a new lease or any changes to an existing lease of a lot. The completion of this form is necessary either by the owner or their leasing agent, as mandated by Section 258 of the Strata Schemes Management Act 2015. New / Change of Lease Notification Staying Connected In compliance with the provisions outlined in Section 258 of the Strata Schemes Management Act 2015, it is imperative that in the event of a lot being leased, the lessor inform the owners corporation not later than 14 days after the commencement of the lease. For your convenience, the owner or the leasing agent/property manager can provide the required information using the form below. The information provided will be used to update the Strata Roll. Owners must give notice to the owners corporation of a new lease within 14 days of commencement by law. Strata Plan Number Lot Number Address Lot Owner Name(s) Tenant Name(s) Primary Phone Secondary Phone Primary Email Secondary Email Lease Commencement * required Lease Expiry * required Lease Term Leasing Agency Property Manager Name Property Manager Phone Property Manager Email Additional Information Name of Submitting Person Submit Community Insights A blog by Compass Strata :: Explore . Engage . Empower A Decade of Protection: A New Chapter for Apartment Buyers and Developers NSW is introducing a new 10-year defect insurance framework for eligible apartment buildings, giving buyers greater protection against serious building defects. But what does it mean for developers, buyers and owners corporations? We take a closer look at what’s changing and why it matters. Timothy Lee 6 min read Census Night Is Coming: Here's What It Reveals About Life in Sydney's Apartments Census night is Tuesday 11 August, and if you live in an apartment, this one counts more than you might think. Every five years, the Australian Bureau of Statistics (ABS) counts every person and every home in the country. It sounds like a bureaucratic exercise, and sure, there's a form involved, but the data that comes out of it shapes everything from where new train stations get built to how much funding your local council receives for parks, footpaths, and community servi Timothy Lee 4 min read Why Sydney Apartment Value Depends on Who Lives Next Door Cotality finds owner-occupier heavy unit areas outperform investor areas. Learn how Compass Strata helps Sydney buildings protect and grow value. Timothy Lee 3 min read 1 2 3 4 5

NCAT-appointed compulsory strata managing agent for NSW schemes in financial or governance crisis. Two documented turnarounds. Confidential initial discussion. Compulsory Strata Management NCAT Appointment s237 of SSMA Chart a path forward Strata living reflects the diversity of society, encompassing individuals from various backgrounds. In an ideal scenario, everyone shares a unified vision for community management. However, disagreements that adversely impact the smooth running of the community can arise, leading to the need for Compulsory Management. In New South Wales, Owners Corporations facing dysfunction may ordered or apply for Compulsory Management by the NSW Civil and Administrative Tribunal (NCAT). Compulsory management may be triggered when the strata scheme faces challenges like failure to maintain common property, inadequate financial management, lack of mandatory insurance, dysfunctional strata committees, or non-compliance with legislative requirements. If attempts to resolve issues fail, the NCAT can exercise its power under section 237 of the Strata Schemes Management Act 2015 to appoint a strata manager to assume part or all of the functions of the Owners Corporation. Put simply, compulsory strata management mandates the involvement of a professional strata management company to handle the administrative and operational aspects of a strata property. It involves transferring some or all of the powers and functions of an owners corporation to a compulsory manager, ensuring effective maintenance and protection of owners' interests in the strata property. In such instances, securing the services of an experienced strata manager like Compass Strata is paramount. This expert guidance is instrumental in steering the community toward effective functioning and alleviating owners of the stress associated with a poorly functioning Owners Corporation. View More Case Study 1 From Held to Ransom to Back in Control Frozen out of its own trust account and financial mismanagement left this community unable to pay creditors or function, Compass Strata was appointed by NCAT as compulsory managing agent for 12 months - restoring order, liquidity and trust. Read More 2 Rebuilding a Broke and Broken Scheme Conflicted owners and years of neglect left this scheme with just $952.67 in net assets! As compulsory manager, Compass Strata prioritised the works, consulted owners on funding, and actioned every critical repair within 12 months. Read More Get in Touch Escape the challenges of a dysfunctional Owners Corporation and safeguard your investment. Connect with the Compass Strata team to chart a clear path forward. Request a Quote Community Insights A blog by Compass Strata :: Explore . Engage . Empower ! Widget Didn’t Load Check your internet and refresh this page. If that doesn’t work, contact us.

Thanks for your quote request for strata management. Compass Strata is committed to helping communities achieve their goals and work in partnership to iron out any twist and turns along the way. Got it! Our team has received your request, and we'll be in touch within one business day. Sit tight, we've got you covered! While you wait, why not explore our interesting strata insights designed to engage and empower strata owners. :: Everyday Conversations :: Money Matters :: Playing by the Rules Follow Us: Community Insights A blog by Compass Strata :: Explore . Engage . Empower ! Widget Didn’t Load Check your internet and refresh this page. If that doesn’t work, contact us.