The NSW Strata Law Reforms that took effect on 1 July 2025 represent the most significant overhaul of strata legislation in over a decade. With 87,000 strata schemes across NSW affecting 1.12 million people currently living in strata-titled properties, these changes will reshape how apartment buyers, sellers, and investors navigate the market.
Whether you're considering purchasing your first apartment or expanding your property investment portfolio, understanding these reforms is crucial for making informed decisions in 2025 and beyond.
Why These Reforms Matter for Property Buyers
NSW is experiencing unprecedented growth in high-density living, with 25% of Sydney's population currently residing in strata properties, a figure projected to reach 50% by 2040. The state's over $350 billion worth of property managed under strata schemes demonstrates the massive scale these reforms will impact.
For apartment buyers, these changes mean enhanced transparency, better governance, and stronger consumer protections. However, they also introduce new compliance costs and procedural changes that could affect property values and ownership experiences.
Major Changes Effective 1 July 2025
Enhanced Accessibility Requirements
The Change: Accessibility infrastructure modifications now require only a simple majority vote instead of a special resolution, making it significantly easier to approve disability access improvements.
What This Means for Buyers:
- Buildings are more likely to implement accessibility upgrades like ramps, handrails, and lift modifications
- Properties with existing accessibility features may become more valuable
- Future-proofing considerations are now more realistic for ageing residents
Expert Insight: "This is a welcome and long-overdue change, especially for ageing buildings and residents," notes Ellie Ashley, Partner at Holding Redlich.
Sustainability Infrastructure Revolution
One of the most buyer-friendly changes prohibits by-laws that ban sustainability infrastructure based solely on aesthetics (except heritage properties). This includes:
- Solar panels and renewable energy systems
- EV charging stations for electric vehicles
- Smart meters and energy monitoring systems
- Energy-efficient building materials and modifications
Financial Impact: Properties with existing green infrastructure are expected to command higher prices, with rental premiums for sustainable features showing a 77% increase in demand in 2025.
Building Bond Increases (Effective 1 July 2026)
The Change: Building bond percentages will increase from 2% to 3% of total contract price for new apartment buildings four storeys or higher.
Buyer Implications:
- Enhanced protection against building defects
- Increased developer accountability
- Potential impact on pricing for new apartment developments
- Greater confidence in construction quality standards
Enhanced Transparency and Governance
Strata Management Accountability
- Six-monthly reporting (reduced from annual) providing regular updates on scheme management
- Enhanced accountability for delegated authority decisions
- Improved financial transparency for owners
Committee Member Training and Duties
New obligations requiring committee members to:
- Complete mandatory training (details being finalised)
- Act honestly and fairly in all dealings
- Use information appropriately and confidentially
- Avoid unreasonable impacts on other owners
Embedded Network Regulations
Critical for Buyers: New rules governing exclusive utility supply contracts include:
- Maximum 3-year terms for exclusive supply contracts
- Enhanced disclosure requirements in purchase contracts
- Right to rescind contracts if embedded networks aren't properly disclosed
- Section 184 Certificates must include detailed network information
Buyer Protection: "This is a win for buyer transparency, too many embedded deals have flown under the radar for too long," explains Leanne Habib, property law expert.
Financial Implications for Apartment Buyers
Record Inspection Fee Changes
Prospective buyers will face increased costs for accessing strata records:
- First hour: $31 → $60 (94% increase)
- Subsequent half-hours: $16 → $30 (88% increase)
While these increases may seem significant, the enhanced transparency and accountability measures provide substantially more value for buyer due diligence.
Strata Fee Considerations
Current strata fees across NSW range from 0.3% to 1.2% of property value annually, with Sydney averaging $500-$2,500 per quarter. The new reforms may influence these costs through:
- Enhanced maintenance obligations
- Mandatory sustainability considerations
- Improved building management standards
- Potential economies of scale through better governance
Unfair Contract Terms Protection
New protections prevent strata service providers from including:
- One-sided contract termination rights
- Unequal penalty clauses
- Unilateral contract modification rights
- Disproportionate liability limitations
This protection extends to cleaning, gardening, and building management services, potentially reducing long-term ownership costs.
Practical Buying Strategies for 2025
Due Diligence Checklist
When purchasing a strata property in 2025, consider these reform-related factors:
- Review Strata Records Thoroughly: Despite higher inspection fees, comprehensive record review is more critical than ever
- Check Sustainability Infrastructure: Properties with existing green features may offer better long-term value
- Assess Governance Quality: Look for schemes with proactive committee training and transparent management
- Embedded Network Disclosure: Ensure all utility arrangements are properly disclosed before signing
Questions to Ask Before Purchasing
- Has the strata committee completed mandatory training requirements?
- What sustainability initiatives are planned or implemented?
- Are there any outstanding building defects or pending major works?
- How transparent is the current strata management reporting?
- Are embedded network arrangements clearly documented?
Investment Considerations
Positive Factors for Investors
- Better-managed buildings through enhanced governance requirements
- Stronger tenant appeal with sustainability features and accessibility improvements
- Reduced operational risks through improved transparency and accountability
- Future-proofing against evolving regulatory requirements
Potential Challenges
- Increased compliance costs may flow through to strata fees
- Higher due diligence expenses for property acquisition
- Adjustment period as schemes adapt to new requirements
Regional Variations and Market Impact
While these reforms apply statewide, their impact may vary significantly across NSW regions:
Sydney Market: Enhanced governance particularly beneficial given the complex management requirements of high-density developments.
Regional NSW: Simpler strata schemes may find compliance less burdensome, potentially offering better value for buyers seeking well-managed apartments outside Sydney.
Newcastle and Hunter Region: With strata fees averaging $550-$3,000 per quarter, the reforms may help standardise management quality across the region.
Timeline for Upcoming Changes
Late 2025 Reforms
Additional changes scheduled for implementation include:
Financial Hardship Support:
- Levy notices must include Financial Hardship Information Statement
- Enhanced payment plan options for struggling owners
- National Debt Helpline contact information
Committee Training Implementation:
- Finalisation of mandatory training content
- Enforcement mechanisms for compliance
- Practical training designed for volunteer committees
Second Wave of Reforms
The NSW Government has indicated a second round of legislative changes expected in October or November 2025, focusing on more complex reforms still under development.
Expert Industry Assessment
The Strata Community Association (NSW) has welcomed these reforms as bringing "positive evolution to the strata experience" and representing "a significant leap toward a more modern, transparent, and equitable strata community."
However, industry experts emphasise the importance of practical implementation. "Mandatory training is welcome, but it must be practical. We're dealing with volunteers, not full-time professionals," notes Leanne Habib.
How PropertyGo Can Help
Navigating these complex changes requires expert guidance. PropertyGo's network of experienced buyer's agents understand the intricacies of NSW strata law and can help you:
- Assess strata scheme compliance with new requirements
- Evaluate long-term value propositions
- Navigate enhanced due diligence processes
- Identify well-managed buildings with strong governance
Our GoMatch system connects you with buyer's agents who specialise in strata properties and understand the implications of these legislative changes.
Planning Your Apartment Purchase
For prospective buyers, these reforms create opportunities to find better-managed, more sustainable, and more transparent strata schemes. Consider using PropertyGo's stamp duty calculator to understand the full cost implications of your purchase, including the new inspection fees.
If you're comparing apartment living with other options, our property buying checklist incorporates the latest regulatory requirements to ensure you make informed decisions.
Long-term Market Outlook
With over 50% of new homes expected to be strata-titled as part of NSW's plan to deliver 377,000 new homes by 2029, these reforms position the state as a leader in strata governance and consumer protection.
The enhanced standards are expected to contribute to:
- Stronger property values through better building management
- Increased buyer confidence in the apartment market
- Improved sustainability outcomes across the residential sector
- Better protection for the growing number of strata residents
Conclusion
The NSW Strata Law Reforms 2025 represent a transformative shift toward transparency, sustainability, and accountability in apartment living. While some costs increase in the short term, the long-term benefits of enhanced governance, better building management, and stronger consumer protections create significant value for informed buyers.
Whether you're purchasing your first apartment or expanding your investment portfolio, understanding these changes is essential for making strategic property decisions. The reforms particularly benefit buyers who prioritise:
- Long-term value through better building management
- Sustainability features and future-proofing
- Transparent governance and accountable management
- Consumer protection in complex strata arrangements
As the apartment market continues to grow, these reforms ensure NSW strata properties meet modern standards of governance, sustainability, and resident protection, creating better outcomes for the 1.12 million people who call strata properties home.
For expert guidance on navigating these changes and finding the right strata property for your needs, consider working with a qualified buyer's agent who understands the implications of these significant legislative reforms.
