Members of the property development and strata sectors have hailed the NSW government's latest reforms to the termination requirements for joint ownership schemes.
Reforms to strata laws in New South Wales are expected to pave the way for Sydney’s future urban development by facilitating the termination of joint ownership property schemes and the removal of redundant building stock.
The reforms passed by state parliament permit the termination of strata schemes with the agreement of 75 per cent of lot holders, as opposed to the unanimous consent that was previously needed.
The decision is expected by members of industry to foster the removal of much of Sydney’s superannuated apartment stock, providing greater scope for the creation of modern buildings that better satisfy current construction standards and prevailing market demand.
Australian peak body for the property development sector has hailed the passage of the reforms as a much-needed step in the upgrade of Sydney’s residential building stock.
“We congratulate the Parliament and NSW is in not weakening the reforms after significant scaremongering from some interest groups,” said Urban Taskforce CEO Chris Johnson. “The change to a 75 per cent agreement by lot holders in a strata scheme to allow termination of the strata scheme…is critical to ensuring ageing, substandard apartment buildings can be replaced with modern buildings.”
Strata Community Australia (NSW) President Greg Haywood previously pointed to the need for statutory reforms to shake up Sydney’s property sector and help expunge obsolete building stock.
“Along with the multi-million dollar OH&S issues posed by age defects like concrete cancer, some of these older schemes have reached the end of their economic lifespan and are too costly to maintain; so often owners take the view that knocking them down and starting over is the best option.” Haywood said.
“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.”
Other states such as Western Australia are also pursuing strata reforms with the goal of expediting urban renewal initiatives by facilitating the termination of existing joint ownership schemes.