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A 2023 report by the Strata Community Association of NSW found that 53 per cent of new-build strata buildings had “serious defects” within six years of their construction. With a continued push for more medium and high-density residential, REB is asking readers: Would you buy a new build apartment in Sydney?
Increasing the supply of medium and high-density housing has been billed as a fundamental step in reducing house prices and easing cost-of-living pressures.
However, buyers remain sceptical after high-profile construction failures across Sydney, including the widely reported Opal Tower crisis and more recent concerns over the structural integrity of Macquarie Park’s Greenland Centre.
Last month, news.com.au revealed that apartment owners in Pyrmont could be hit with bills of up to $220,000 to replace flammable cladding, including $70,000 for one-bedroom units.
The reports add to a growing body of data pointing to widespread issues in new apartment builds. A 2023 study by the Strata Community Association of NSW found that 53 per cent of new strata buildings had “serious defects” within six years of construction, up sharply from 39 per cent in 2021.
The findings have raised fresh concerns around quality and safety, risking public support for increased urban density.
Have your say: Would you buy a new build apartment in Sydney?
Speaking to REB, Julian Fadini, director of PRPTY 360, highlighted the need for buyers to be vigilant when buying new-build homes, warning that declining quality is causing ripples across the industry.
“We’re definitely seeing a decline in build quality across the board. The rush to meet housing demand, combined with labour shortages and cost pressures, has created a perfect storm where corners are being cut,” Fadini said.
“It’s not just apartments either – we’re seeing issues across various property types, but strata buildings are particularly vulnerable because of their complexity.”
Fadini’s advice: research the builder, buy houses where possible, and don’t cut corners on quality.
“This is exactly why we focus on houses over apartments in our investment strategy. When we do recommend new-builds, we’re incredibly selective about the developer’s track record and the building process,” he said.
“Investors need to do their homework – research the developer’s history, get independent building inspections at key stages, and understand the builder’s warranty provisions. Most importantly, don’t chase the cheapest option. Quality costs more upfront but saves you significantly in the long run.”
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