Insights from CHU's 2025 Strata Market Report

According to the report, strata insurance premiums have remained relatively stable, with a 2.8% increase in the year leading up to June 2025. This modest rise, from an average annual premium of $954 to $981 per lot, is below the 3.4% increase in household incomes over the same period, indicating that affordability for apartment owners has been maintained.

The report also highlights the impact of significant weather events in 2025, including cyclones and widespread flooding, which have underscored the importance of climate risk management in strata insurance. Despite these challenges, a review by the Australian Reinsurance Pool Corporation (ARPC) in September 2025 found that premiums for strata properties would remain unchanged, suggesting that current pricing remains adequate for the risk profile of strata properties.

Regulatory activity is another area of focus in the report. Reviews in New South Wales, Western Australia, and the Australian Capital Territory are introducing new requirements for transparency, consumer protection, and professional standards. For instance, New South Wales has implemented reforms such as standardised maintenance planning and enhanced conflict-of-interest disclosures.

Building defects and combustible cladding continue to be pressing issues for the strata sector. The 2025 NSW Strata Defects Survey has been launched to gather updated data on the prevalence and management of defects. Additionally, the rise in lithium-ion battery fires has prompted regulators to issue new safety guidelines, with many strata managers implementing formal battery management policies.

Looking ahead, the report forecasts that affordability, climate resilience, and regulatory compliance will remain central themes for the strata insurance sector. Key developments anticipated in 2026 include further reforms in New South Wales, the conclusion of Western Australia's five-year strata law review, and the next ARPC Cyclone Pool assessment.

Kimberley Jonsson, Chief Executive Officer at CHU, commented, "Right now, one in ten Australians live in strata, with more than three million total lots across the country, and that number is only set to rise. As density increases, so do expectations. The strata sector has an opportunity to set a new standard for urban living across Australia."