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Strata management industry finds 'sweet spot'

08 April 2013 Stacey Moseley

Medium-sized strata businesses are enjoying favourable conditions while larger ones are experiencing subdued activity, new research shows.

According to the Macquarie Relationship Banking Strata Management Best Practice Benchmarking Report, strata management businesses should aim for a ‘sweet spot’ between small and large businesses.

The survey of more than 130 strata management businesses suggests that while it was once preferable to operate a distinctly larger or smaller business, medium-sized strata managers with 2,000 to 10,000 lots under management are excelling, with 98 per cent reporting to have grown their revenue in the 2011/2012 financial period.

“Mid-sized strata businesses have performed particularly well, and are seeking out and maximising opportunities to their advantage,” observed Cameron McMillan, national head of strata Macquarie Relationship Banking.

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“Current higher levels of smaller scale development, which are supporting growth of the smaller to medium-sized strata managers … Conversely, larger managers who rely more heavily on larger developer relationships are finding market conditions quite subdued,” Ms McMillan said.

But while medium-sized management has enjoyed favourable conditions, the rest of the strata industry has performed strongly, with 89 per cent of businesses enjoying solid levels of growth in the 2011/2012 financial year.

“Also revealed is a broadening gap between the strongest and weakest performers, suggesting strata management is no longer an industry where success is shared equally across the market,” Ms McMillan added.

Strata management industry finds 'sweet spot'
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