The concept of strata communities was introduced and put six decades ago in Australia, and since then, it has become a popular trend. And a report recently released showed that residents within the New South Walls are likely to adopt this new concept of strata community more than the Victorian residence. In the year 1961, when the development of small clusters began, this is within the urban areas of NSW. Thus, with strata communities on the rise, it is starting to look like a desirable feature. Over three million strata communities have already been developed, and demand proves how much the concept is quickly adopted in Australia.
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Strata community is a hot industry in Australia.
Let’s look at some numbers to get a better picture of how this industry has become the most wanted. One in ten Australians resides in townhouses, apartments, and villa units. From this pool about 24% are couples with no children, while 35% live alone in the flats, 13% account for couples with children, 9% are for group households, while 6% are single parents living within these strata communities. The remaining 13% is others; in this group, it constitutes friends or flatmates.
And with further data analysis, this is from Census information collected and data from land title authorities shows that NSW has the largest number of strata community, as 15% of people within this state leave in a strata community. This is about 7, 564945 residences that have adopted the concept of strata living.
The next big state that has adopted this new concept is Victoria, with about 8%, 471, 317 residences in strata communities. Queensland has approximately 7%, 4.84 million, and South Australia has the lowest numbers of about 4%.
Reasons for the rapid growth in strata communities
The strata community project was led by Professor Hazel Easthope, Dr. Sian Thompson, and Dr. Alistar Sisson. And they claim two main reasons has led to the popularity of these communities.
- One of the main reasons is behind the country’s population growth, and the need to stay close to the cities. Thus, a need to create more homes that will accommodate all these citizens.
- The second is the government policies that encourage the idea of building up, instead of building outside these urban areas. Thus, this is allowing more people to get their dream homes within the urban areas.
This means it has become effortless to get ownership of strata title, as the apartments are being divided into smaller units. Thus, the market has made these apartments more tradeable than stand-alone homes. Thus, making these communities more accessible, more consumable to the market at large. And with the cultural drive of homeownership in Australia, this option gives citizens a good start when getting into the housing market.
But with the COVID-19 pandemic, it might be a little too early to register the impact. According to Dr. Easthope, Australia should expect some level of slow growth in the new dwelling growth due to the economic downturn that everyone has experienced, plus the reduction of migration that the pandemic has brought about.
But with the positive response, the strat communities feel this negative effect could be shortlived. With the twin policy drivers of migration and population growth and the consolidation of the urban areas, there is something to look forward to with strata communities. These communities will play a vital role in the development of the urban regions in the long run.
As we can see, strata living is the way to go for most citizens, it is a convenient option, cost-effective and provide residents with the necessary services.