Proposed strata reforms in New South Wales allowing a reduced majority to approve redevelopments have been heralded as a much-needed shake-up for the sector.
A peak strata industry association believes the strata reforms proposed by the NSW Government last week are well placed to deliver a major boost to Sydney’s economy.
In a media release, Strata Community Australia NSW president Greg Haywood reserved particular praise for the key reform – allowing owners corporations to make termination decisions on a 75 per cent majority basis.
“We’ve seen dozens of instances where a single owner has blocked the redevelopment of run-down, aged and degraded apartment and unit blocks, which in some cases should be rightfully bulldozed,” Mr Haywood said. Under present laws, such decisions require a 100 per cent consensus among stakeholders.
Mr Haywood believes the rise in redevelopment decisions resulting from the reforms will trigger an increase in building construction, with the state’s property sector receiving a boost as a result.
“What we’re looking at here is a facelift for the entire state property market, with older, redundant properties expected to make way for bigger, better communities,” Mr Haywood said.
The proposed reforms, which also involve changes to by-laws and manager accountability requirements, were put on public exhibition last week by state Minister for Fair Trading, Victor Dominello.
The two bills encompassing the reforms, the Strata Schemes Development Bill 2015 and Strata Schemes Management Bill 2015, are yet to be voted on.