By 2030, some capital cities in Australia could have more units than houses, potentially creating an increased demand for property managers.
In Sydney alone, more than 2,800 apartments have been built in 2016, resulting in a significant boost for strata property management businesses.
However, there are concerns strata managers may not be able to keep pace with this growth.
“There are in excess of 808,376 strata title lots in New South Wales being managed by 1,731 licensed strata managing agents, a ratio of 467 lots every one manager,” Strata Community Australia (NSW) president Greg Haywood said.
“The monumental development growth seen recently has made us question who is going to manage these buildings.”
Another challenge the industry faces is the growth of short-term letting services such as Airbnb and Stayz.
Such services – which are not legally bound by the same laws governing property management – could dramatically change the rental market.
According to the Real Estate Institute of NSW (REINSW), these online platforms offer no property management responsibilities at all.
It said they presented issues around the breach of strata laws relating to nuisance and short-term permissions.
REINSW suggested that anyone who rents their property – whether they are entire homes or single rooms –should be required to hold a licence to operate as a short-term letting.
It wants licence fees raised used to fund a body to plan and administer compliance for short-term rental accommodation standards.