A small change to Queensland’s antiquated strata laws would facilitate the redevelopment of old apartment buildings and assist in responding to the state’s housing crisis.
The current laws mean that a single apartment owner can prevent the majority from redeveloping a unit complex into a newer, safer building that can accommodate more residents in high amenity areas.
Under the laws unanimous approval is required from all owners in an apartment building prior to wrapping up the strata scheme.
NSW reduced their own unanimous strata termination threshold to 75 per cent in 2015, providing Queensland with additional insight into how to embark on the reform so it boosts housing supply while also ensuring safeguards for consumers.
Queensland Property Council Executive Director Jen Williams explained that reducing the threshold in Queensland has been a priority of the Property Council since it was recommended as part of an independent review commissioned by the State Government in 2017.
“In 2017 the Queensland Government commissioned QUT to review Queensland’s strata laws and this review recommended a reduction in the state’s current unanimous strata termination threshold,” Ms Williams said.
“Now with government and industry committed to responding to the State’s housing crisis it is the perfect time to implement this much needed reform.
“You only have to drive through the Gold Coast and you will see countless unit blocks in high density areas that are not only small and underutilized but also dilapidated and sometimes unsafe for residents.
“In these instances, the vast majority of unit owners want to wrap up their strata scheme and cash in on their investment but are all too frequently locked in by a single owner who believes that by being the last one in the building to hold out they will be able to get more money.
“The Property Council has also previously commissioned Griffith University to undertake research that recommended adopting the approach taken by NSW and lowering the termination threshold to 75 per cent.
“As such, we welcomed the Government’s commitment in the recent housing summit outcomes report to reform the current threshold in Queensland with regard to the NSW approach and believe that it is imperative to urgently push ahead with this much needed change,” Ms Williams said.
MinterEllison Partner Bryce Melville is a property law specialist on the Gold Coast which has become a hotbed for issues relating to outdated strata schemes.
“While amending the current threshold seems to be a no brainer for many within the property industry there has been a lack of political will to do so due the optics of the issue,” Mr Melville said.
“However, states like NSW have already moved ahead with their own systems which have been thoroughly engineered to ensure the appropriate safeguards and protections are in place for consumers.
“The NSW legislation has unlocked numerous lots and increased the willingness of apartment owners to redevelop due to a greater awareness of the new threshold.
“The results from NSW highlight that Queensland no longer needs to approach this exercise with first mover hesitancy but can legislate this reform with confidence knowing that it has been tried and tested,” Mr Melville said.
ENDS