A survey undertaken by Building Commission NSW alongside the Strata Community Association NSW (SCA) has found that serious property defects are on the decline, providing buyer confidence throughout the state.
Less defect notices have been recorded since 2020 in class two residential apartments. 642 surveys in 2023 found that 53 percent of buildings experienced serious defects in common property. The proportion of serious defects reported to the regulator in 2023 more than doubled since 2021, with 34 percent of buildings reporting, compared to 15 percent in 2021.
“While this survey delivers an important reminder of the legacy issues that reside in apartment buildings completed before the Construct NSW reform strategy commenced in 2019, it demonstrates that these reforms have shifted the dial in the right direction for newer buildings,” says NSW Building Commissioner David Chandler.
“This survey presents some promising findings. It demonstrates a steady decline in the reported defects since 2020, and strata communities and future apartment purchasers should be increasingly confident that NSW is the most attractive state in which to purchase a new apartment.
“The incidence of waterproofing defects is declining, supported by what building inspectors are seeing in the field. The reported incidence of non-compliant fire safety and key building services installations has increased, possibly due to increased awareness of these building elements.”
Waterproofing and fire safety systems remained the most prevalent defects (42 percent and 24 percent respectively in 2023), though the prevalence of waterproofing defects has decreased in recent years. Owners typically resolve defects through agreements with builders or developers, with almost half being resolved within one year.
48 percent of strata managers noted that new laws in NSW have increased consumer confidence in residential apartments.
“Many people across NSW live in vibrant, thriving and diverse strata communities, and they play a pivotal role in our society,” says SCA President Stephen Brell.
“With the number of strata schemes rapidly increasing in NSW, SCA continues to support the NSW Government's commitment to enhancing the quality of life for strata residents.
“I’m proud of the role our members have played in providing valuable insights as part of this research completing 642 surveys, up from 492 in 2021. This represents a 41 per cent survey response rate.
“The data and findings in 2023 point to a backlog of legacy defects. Project Intervene, an outcome of the 2021 survey, is making inroads into these buildings with over 150 buildings registered for the program. “
The survey was conducted from June 26 to August 31, 2023, through the NSW Strata Hub.
Image: Vicinity at Canterbury, NSW
