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Almost one in six Australians now live in strata-titled properties such as apartments and townhouses, a new report shows, and the numbers will likely continue growing as governments look to build up, rather than out.
At least 16 per cent of Australians live in strata-titled properties, with 10 per cent of the population in apartments and 6 per cent in other strata dwelling types such as townhouses, retirement villages, holiday parks, and strata-titled detached housing, according to the Australasian Strata Insights 2022 report.
However, the report noted that total figures could go potentially as high as 26 per cent.
The report, which provides an up-to-date snapshot of the trans-Tasman strata industry every two years, also showed people owning and living in strata-titled properties, or lots, accounted for 28 per cent of the country’s 3,071,188 lots.
The figures represent a substantial 7 per cent increase (or over 200,000 lots) from the previous report’s 26 per cent share out of a total of 2,869,845 lots two years ago.
“Both Australia and New Zealand have seen rapid growth in strata-titled dwellings, both in the last decade, and as this research shows, in the last two years,” Professor Hazel Easthope, who led the research project team at UNSW, said.
In terms of distribution, data showed each Australian state and territory, along with New Zealand, experienced significant growth in strata lots during the period.
The biggest increase in strata lots was recorded in the ACT, which showed a 19 per cent jump. This was followed by NSW and Victoria, with a 9 per cent increase each, and Tasmania with 8 per cent.
Introduced in the 1960s, strata-title property ownership has witnessed significant growth in Australia. According to Professor Easthope, what initially began as a concentration in select urban pockets has now evolved into a prominent element of the housing landscape throughout Australia and New Zealand.
“This increase reflects population growth as well as government policies to promote urban consolidation — that is, building up, rather than out — within existing urban areas,” the researcher stated.
Strata Community Association (SCA) national president Chris Duggan said the rapid shift in Australians’ priorities in recent years is fuelling the growing popularity of strata living.
“In 2023, people value access to work, shopping, entertainment and recreational amenity more than any other time in our history, and strata living is leading the charge to fulfilling these needs,” he explained.
“Strata living serves as both a preferred housing choice for discerning owners wanting best in class location and amenity and also as a cost-effective entry point to the market, whether rental or ownership, providing immediate answers to the cost-of-living crisis and housing affordability as more stock enters the market,” he added.
A closer look at the data showed nearly half (47 per cent) of strata-titled tenants rent, 12 per cent own outright, 16 per cent own with a mortgage, while 17 per cent are unoccupied.
But with half of Australia’s strata building stock built before the year 2000, Mr Duggan highlighted a need for widespread retrofitting.
“For the millions of Australians who currently live in strata, and for the millions who will be fresh entrants in the coming decades, we need to ensure better planning, better building quality and better governing regulation to improve quality of living,” he stated.
Mr Duggan called on governments and the property industry to come together to coordinate policy solutions, such as ageing building stock, as well as the current construction slowdown, population growth and housing shortages.
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