CHU Publishes 2025 State of the Strata Market Report

One of the report's key findings is the relative stability of strata insurance premiums. Over the twelve months leading up to June 2025, premiums increased by 2.8%, rising from $954 to $981 per lot annually. This growth rate is notably lower than the 3.4% increase in household incomes during the same period, indicating that strata insurance remains affordable for apartment owners. In contrast, house insurance premiums surged by 14%, driven by concentrated climate risks and structural vulnerabilities in standalone properties.

The report also highlights the impact of recent weather events on the strata sector. In 2025, Australia experienced a series of significant weather events, including Tropical Cyclone Zelia, Ex-Tropical Cyclone Alfred, and widespread flooding across multiple states. These events underscore the climate risks faced by strata properties and the importance of resilience and risk-mitigation measures. Despite these challenges, a September 2025 review by the Australian Reinsurance Pool Corporation confirmed that premiums for strata properties would remain unchanged, with the review finding overall pricing adequate.

Regulatory reforms are another focal point of the report. Reviews across New South Wales, Western Australia, and the Australian Capital Territory are introducing new requirements for transparency, consumer protections, and professional standards. For instance, New South Wales has implemented tougher accountability measures for strata managers, including standardized maintenance planning and enhanced conflict disclosure. Western Australia is moving toward professionalization of strata management with proposed Certificate IV qualifications and defined role structures, while the ACT is reviewing potential reforms, including licensing requirements.

Building defects and safety concerns, such as issues with cladding and the rise in lithium-ion battery fires, remain significant challenges for the industry. The report notes that Western Australia's fire service confirmed 94 lithium battery fires by August 2025, highlighting the need for new safety guidelines and formal battery management policies within strata communities.

Looking ahead to 2026, the report signals that affordability, climate resilience, and regulatory compliance will remain central themes for the sector. Major reforms are scheduled in New South Wales, the completion of Western Australia's five-year strata law review, and the next Australian Reinsurance Pool Corporation Cyclone Pool assessment expected in late 2026.

Kimberley Jonsson, Chief Executive Officer at CHU, emphasized the importance of these developments, stating, "Right now, one in ten Australians live in strata, with more than three million total lots across the country, and that number is only set to rise. As density increases, so do expectations. The strata sector has an opportunity to set a new standard for urban living across Australia."