50 Years of Strata Title in Australia<br />NAMASA  INDABA <br />6 May 2011<br />Johannesburg, South Africa <br />
Introduction<br />Australian housing overviewed<br />Strata in Australia begins<br />50 years of expansion & change<br />S...
Translations<br />Body Corporate  =  Owners Corporation<br />Common Property  =  Common Property<br />Developer  =  Origin...
Strata Housing in Australia<br />Mostly a country of urban sprawl but it’s changing <br />7.6 million square kilometres, 2...
Strata Begins<br />Apartments appear in the early 20th century<br />Early ownership structures via company title<br />The ...
The 1960’s<br />First strata laws in NSW begin<br />Only 29 sections and two schedules (one schedule with only 10 lines<br...
The 1970’s<br />Strata laws introduced in Australian Capital Territory & Northern Territory<br />Major reform of NSW laws ...
The 1980’s<br />Major law reform in NSW with community title laws allowing estate subdivisions<br />Steady growth in strat...
The 1990’s<br />Major law reform in NSW with 2 part laws splitting development & management<br />In NSW over 400 sections,...
The Naughties<br />Australian laws copied in United Kingdom & United Arab Emirates<br />Proliferation of law reforms in ev...
Highlights over 50 Years<br />Frequent law review & reform<br />Promotion of flexible development options<br />Specialist ...
Trends<br />Decentralised control away from committees<br />Increasing owner empowerment  <br />Hyper-regulation of strata...
Future Challenges<br />Operational complexity<br />Effective strata scheme support services  <br />Rapidly rising operatin...
Some Thoughts<br />Demographic, economic & urban planning trends require more high density strata housing<br />But, owner ...
Contacting Me<br />Contact me anytime about Australian strata matters …<br />francesco@strataexperts.com.au<br />And, foll...
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Presentation for NAMA Indaba, Johannesburg, South Africa - May 2011

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A presentation about the first 50 years of strata title laws in Australia

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Presentation for NAMA Indaba, Johannesburg, South Africa - May 2011

  1. 1. 50 Years of Strata Title in Australia<br />NAMASA INDABA <br />6 May 2011<br />Johannesburg, South Africa <br />
  2. 2. Introduction<br />Australian housing overviewed<br />Strata in Australia begins<br />50 years of expansion & change<br />Some highlights along the way<br />Existing & emerging trends<br />Challenges for the future<br />Questions <br />
  3. 3. Translations<br />Body Corporate = Owners Corporation<br />Common Property = Common Property<br />Developer = Original Owner<br />Rules = By Laws <br />Owner & Unit = Owner & Lot<br />Sectional Title = Strata Title<br />Sectional Plan = Strata Plan<br />Special Resolution = Special Resolution<br />Unanimous Resolution = Unanimous Resolution<br />
  4. 4. Strata Housing in Australia<br />Mostly a country of urban sprawl but it’s changing <br />7.6 million square kilometres, 22.5 million people, 8 major cities (the largest with 4 million people)<br />A strong culture of property ownership, stable banking & long term low interest mortgage sector with taxation incentives for residential rental investment property<br />An enthusiastic property development sector operating in boom-bust cycles<br />Multi unit housing represents 25% of total Australian housing<br />51% of new housing in NSW in 2010 was multi unit housing<br />
  5. 5. Strata Begins<br />Apartments appear in the early 20th century<br />Early ownership structures via company title<br />The post war period see many more low rise apartments mostly rented to younger couples saving for a home<br />1950s income & wealth levels of baby boomers lead to pressure to own apartments<br />Innovators looked at apartment titling options and Lend Lease (via Dick Dusseldorp) lobbies for & initiates strata title laws<br />The Conveyancing (Strata Titles) Act 1961 starts on 1 July 1961<br />
  6. 6. The 1960’s<br />First strata laws in NSW begin<br />Only 29 sections and two schedules (one schedule with only 10 lines<br />Laws copied in Tasmania, Queensland, Western Australia, Victoria & South Australia<br />First strata building remains in existence<br />Pioneering times for everyone<br />Surveyors dominated strata title matters<br />Approximately 8,000 strata buildings created<br />
  7. 7. The 1970’s<br />Strata laws introduced in Australian Capital Territory & Northern Territory<br />Major reform of NSW laws in 1974 <br />New laws have 200 sections, 4 schedules & separate regulations<br />Australian laws copied in Canada, New Zealand, Singapore, South Africa, Indonesia, Malaysia, Fiji, Philippines, Cayman Islands, India & Hong Kong<br />Negative gearing promotes strata rental investment<br />Development of a specialised strata management industry<br />Approximately 18,000 strata buildings created<br />
  8. 8. The 1980’s<br />Major law reform in NSW with community title laws allowing estate subdivisions<br />Steady growth in strata numbers, popularity & values<br />Introduction of large scale foreign investment in strata property ownership<br />Professional strata associations/groups emerge<br />Regulation of strata managers in 2 states<br />Holiday apartment syndrome starts in Queensland<br />The first 500 plus lot strata schemes created<br />Approximately 30,000 strata buildings created<br />
  9. 9. The 1990’s<br />Major law reform in NSW with 2 part laws splitting development & management<br />In NSW over 400 sections, 13 schedules & 2 sets of regulations<br />Major law reform in Queensland in 1997 creating core Act & Regulation Modules for different building types<br />In Queensland over 250 sections & 5 modules with over 800 clauses<br />Australian Property boom means massive growth in strata numbers<br />Long term (25 year) on site management contract emerge<br />Separation of administrative work from building management/maintenance <br />Approximately 38,000 strata buildings created<br />
  10. 10. The Naughties<br />Australian laws copied in United Kingdom & United Arab Emirates<br />Proliferation of law reforms in every Australian state<br />Over 33 separate strata Acts, with 1600 sections, 3000 regulations & 70 schedules<br />Proliferation of legal decisions in Courts around Australia<br />GFC puts pressure on property values & strata cashflows<br />Larger & more complex strata developments emerge but smaller sized housing units become standard in strata<br />Strata manager business polarise with large oligopoly style operators & micro businesses <br />Approximately 42,000 strata buildings created<br />
  11. 11. Highlights over 50 Years<br />Frequent law review & reform<br />Promotion of flexible development options<br />Specialist dispute resolution<br />Regular superior Court consideration & decisions<br />Wide commercial acceptance of strata title<br />Public adoption of strata living within 50 years<br />Low level of manager regulation<br />
  12. 12. Trends<br />Decentralised control away from committees<br />Increasing owner empowerment <br />Hyper-regulation of strata scheme operations<br />Degeneration of management into over-formality<br />Owner apathy & ignorance<br />Haphazard application of other laws<br />
  13. 13. Future Challenges<br />Operational complexity<br />Effective strata scheme support services <br />Rapidly rising operating costs<br />Appropriate owner engagement<br />Tennant status vs. responsibilities<br />
  14. 14. Some Thoughts<br />Demographic, economic & urban planning trends require more high density strata housing<br />But, owner & tenant experiences of strata owning & living are poor<br />Processes & outcomes need significant improvement<br />Otherwise strata will be a necessary housing evil and not a desirable option<br />People involved in strata will continue to struggle to be properly recognised & rewarded<br />
  15. 15. Contacting Me<br />Contact me anytime about Australian strata matters …<br />francesco@strataexperts.com.au<br />And, follow my blog on worldwide strata matters …<br />www.francescoandreone.blogspot.com<br />

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