As our cities become denser, strata title becomes more prevalent.
It’s an important form of ownership for both residential and commercial property. But it has one big disadvantage. It requires 100 per cent of owners to agree to wind up the scheme at the end of the building’s physical or economic life.
Nothing lasts forever. As our cities evolve and grow, strata titled buildings will need to be refurbished, renewed or demolished. However getting unanimous approval from even a dozen owners is a big challenge, but a few hundred is well-nigh impossible.
It’s a strata title straightjacket which risks locking up our cities.
The Property Council has been a long-term champion of the need for a lower threshold and a clear renewal processes to guide owners through a scheme termination.
Last week the WA government proposed a majority threshold for schemes of 10 or more lots which are more than 15 years old.
This month the NT parliament will consider legislation to do the same. Both are positive moves showing policy makers are thinking about the future.
They are also a useful template for other states like NSW, where reform momentum seems to have stalled.