Insights from CHU's 2025 Strata Market Report

One of the standout findings is the modest 2.8% increase in strata insurance premiums over the past year, rising from $954 to $981 per lot annually. This increment is notably lower than the 14% surge observed in house insurance premiums during the same period. Such stability underscores the resilience of the strata insurance sector amidst broader economic pressures.

The report also delves into the impact of climate-related events on strata properties. In 2025, Australia faced a series of significant weather events, including Tropical Cyclone Zelia and widespread flooding across multiple states. These incidents have intensified the focus on climate resilience within the strata community. Encouragingly, a review of the Australian Reinsurance Pool Corporation's Cyclone Pool confirmed that premiums for strata properties would remain unchanged, indicating adequate pricing structures to manage such risks.

Regulatory reforms are another focal point of the report. States like New South Wales have introduced stricter accountability measures for strata managers, encompassing standardized maintenance planning and enhanced conflict disclosure. Western Australia is progressing towards the professionalization of strata management, proposing Certificate IV qualifications and clearly defined role structures. These reforms aim to elevate the standards and transparency within the strata sector.

Building safety and risk management are also addressed, with particular attention to issues like building defects and the emerging concern of lithium-ion battery fires. For instance, Western Australia reported 94 lithium battery fires by August 2025, prompting regulators to issue new safety guidelines and strata managers to implement formal battery management policies.

Looking ahead, the report anticipates that affordability, climate resilience, and regulatory compliance will remain central themes for the strata industry. With major reforms on the horizon and ongoing assessments of risk management strategies, stakeholders are encouraged to stay informed and proactive in adapting to these evolving dynamics.

For a detailed exploration of these insights and more, the full CHU 2025 State of the Strata Market report is available for download.