With more than 85,000 strata schemes across New South Wales, strata living has become the backbone of Sydney’s property market. From sleek CBD apartments and inner-west conversions to modern townhouse complexes across the Hills and Parramatta regions, strata ownership continues to grow rapidly as land supply tightens.
But managing and living in strata isn’t always straightforward—and that’s precisely what the 2025 NSW strata reforms aim to address. Coming into effect on 27 October 2025, these sweeping changes overhaul how strata schemes are governed, how disputes are handled and how building managers are held accountable.
For existing owners, it means better transparency and financial protections. For prospective purchasers, it creates clearer expectations, safer investments, and greater peace of mind.
As a Sydney buyer’s agent who reviews strata reports daily, I can tell you these reforms will directly impact both the experience and the due diligence process of buying into a strata property. Here’s what’s changing, why it matters, and how you can prepare.
🏙️ Understanding the 2025 NSW Strata Reforms
The NSW Government has announced one of the most significant updates to strata law in nearly a decade. The goal? To improve fairness, accountability, and transparency for both owners and residents.
Here’s a breakdown of the key reforms taking effect from 27 October 2025:
1. Fair Trading Gains Stronger Powers
The reforms expand NSW Fair Trading’s authority to step into disputes and issue binding orders, rather than referring matters to lengthy tribunal hearings. This means quicker, cheaper resolution of conflicts—whether it’s over levies, repairs or by-law breaches. For owners and purchasers, this improves confidence that issues can be addressed promptly, without protracted legal wrangling.
2. Support for Owners in Financial Hardship
A new financial hardship framework allows owners struggling with temporary financial difficulty to access structured relief—such as deferred levy payments—without risking immediate legal action or scheme instability. This change benefits everyone in the building: it helps owners stay solvent and ensures the scheme remains financially healthy overall.
3. Greater Oversight of Building Managers
Concerns around conflicts of interest in building management have been widespread for years. The reforms now require clearer boundaries, shorter contract terms and higher transparency in how building managers are appointed and paid. For purchasers, this means you’ll be better able to assess whether the building is well-run and whether management contracts are fair.
4. Simplified Meetings and Voting
Outdated meeting procedures often made participation difficult for busy owners. The new legislation streamlines electronic voting and hybrid meetings, so more owners can engage easily. This shift should result in more active participation and stronger community decision-making—key indicators of a healthy strata scheme.
🏠 What This Means If You Already Own in a Strata Scheme
If you’re a current strata owner, these reforms are designed to make life simpler and fairer. Here’s how:
Better protection in disputes: With Fair Trading’s new powers, you won’t need to spend months in mediation to resolve issues.
Improved financial resilience: The hardship provisions prevent owners from falling into arrears unnecessarily, protecting both individual owners and the scheme’s overall budget.
More accountability from managers: New oversight ensures your levies are spent appropriately and that contracts are reviewed transparently.
Easier participation: Online voting means more voices in decisions that shape the building’s future.
For owners, this represents a shift toward stability and transparency—two cornerstones of successful strata living.
🔑 What This Means If You’re Looking to Buy into Strata
As a buyer, understanding how a building operates is one of the most crucial aspects of due diligence. These reforms make it easier to see whether a building is being managed responsibly.
Here’s how the changes benefit purchasers directly:
Confidence in governance – Stronger oversight reduces the risk of mismanagement or non-compliance.
Transparency in contracts – Buyers will have access to clearer, more transparent management agreements.
Fairer levies and reduced risk – With hardship provisions in place, schemes are less likely to face cash flow issues from unpaid levies.
Accessible compliance information – Buyers can more easily verify whether a scheme meets its legal obligations under the new framework.
In short, these reforms give you a clearer window into the real health of a building—beyond the glossy marketing photos.
👩💼 How This Impacts Different Types of Buyers
1. Investors
Investors benefit from the greater transparency and governance stability these reforms provide. Strata schemes that are well-run and financially stable protect rental income and reduce the risk of special levies—making long-term yields more predictable.
2. First-Home Buyers
For first-time buyers entering Sydney’s apartment market—particularly in the Inner West, Parramatta, or Green Square precincts—these reforms offer extra safeguards. The stronger regulatory framework helps prevent unfair practices and ensures that levies and contracts are managed properly.
3. Returning Expats and SMSF Buyers
Expats and self-managed super fund (SMSF) purchasers often rely on strata properties for convenience and low maintenance. The 2025 reforms enhance confidence for these buyers by ensuring consistent oversight and governance, even when they’re not directly involved in day-to-day management.
🕵️♀️ What You Should Do Before Buying into Strata
If you’re purchasing a strata property in 2025 or beyond, due diligence has never been more important. Even with improved laws, buyers still need to verify that a building complies with them.
Here’s what I advise all my clients to do:
1. Review Strata Records Thoroughly
Ask for a current strata inspection report. Check whether the strata committee is meeting regularly, that minutes reflect compliance with the new rules, and that there are no unresolved disputes.
2. Examine Financial Statements
Look at administrative and capital works funds. Are levies realistic for the size and age of the building? Are there upcoming special levies or major works?
3. Understand the Building Manager’s Role
Ensure that management contracts meet the updated legal requirements. Ask whether the building has reviewed these agreements in preparation for the reforms.
4. Engage in Scheme Governance
Once you own in a scheme, take advantage of electronic voting and new meeting flexibility. Being involved helps maintain property value and community harmony.
💡 Why These Changes Matter
Sydney’s property landscape is dominated by strata living — and with that comes complexity. From Parramatta to the Eastern Suburbs and Sutherland Shire, thousands of buyers each year purchase into multi-owner schemes that depend on cooperation, financial prudence, and clear governance.
The October 2025 reforms are about strengthening the integrity of that system. They aim to:
Simplify how schemes are managed.
Increase fairness for owners in financial difficulty.
Provide better dispute mechanisms.
Bring transparency to management contracts.
Ultimately, the reforms are designed to make strata living fairer, more accountable, and more sustainable—qualities every buyer should value.
🧭 What It Means for Buyers Working with a Buyer’s Agent
Understanding strata law is one thing; applying it in real-world property purchases is another. As a buyer’s agent, my job is to ensure my clients purchase with full awareness of both the property itself and the scheme behind it.
Here’s how I integrate these changes into my client process:
Detailed strata report review: I assess minutes, budgets, insurance and upcoming works to identify red flags.
Governance assessment: I check whether the building is operating under compliant, transparent management.
Risk analysis: I evaluate how well the scheme is positioned financially and legally in light of the new legislation.
Negotiation leverage: If issues are identified, I use them strategically during negotiation to protect or enhance buyer outcomes.
The 2025 reforms give buyers stronger protections—but only if they understand how to identify compliance (or lack thereof). That’s where professional representation makes a tangible difference.
📘 The Bottom Line
The new NSW strata laws, effective 27 October 2025, represent a major step forward in improving transparency, fairness, and consumer protection for everyone involved in strata living.
For current owners, they offer a fairer system and stronger financial safeguards.
For prospective buyers, they provide greater clarity, better protection, and a more stable environment in which to invest.
However, no legislation can replace thorough due diligence. Whether you’re buying your first apartment, upgrading to a townhouse, or investing for the long term, understanding how these changes impact your purchase is essential.
As always, an informed buyer is an empowered one—and these reforms make that easier than ever.
🏡 Thinking of Buying into a Strata Property?
Buying a strata property in Sydney can be complex—but it doesn’t have to be overwhelming. As a licensed buyer’s agent, I help clients navigate every step: from identifying the right property and reviewing strata records, to understanding legislative changes like these.
If you’re considering purchasing an apartment or townhouse in 2025, let’s talk about how these reforms may affect your options and strategy.
📞 Get in touch today for independent, expert advice on your next strata purchase.
