Why High Rise Strata Fee Increases Continues to Amaze Us
Apartment owners face strata fee increases of 20 per cent as costs soar
19 JULY 2023 Strata levies paid by apartment owners are up by 15 to 20 per cent on average over the past year as the costs of insurance, utilities and repairs and maintenance outstrip even the rapid rise in general inflation. Apartment owners are facing an increase in strata fees on top of rises in mortgage repayments.
High-rise strata buildings have the highest fees in Australia. Multiple lifts, concierge services, rooftop pools, gyms, and complex building management systems push operating budgets significantly higher. Insurance costs are also substantially greater for high-rise buildings. Typical annual strata fees for a high-rise apartment range from $7,000 to $12,000+ per year, with quarterly levies of ...
High Rise Strata Fee Increases
Apartment owners face strata fee increases of 20 per cent as costs soar
The strata management industry itself has seen fee increases of 10-20% over the past two years, reflecting higher labour costs and the complexity of managing modern strata schemes.
High Rise Strata Fee Increases
Inflation Causes Pain for Strata Owners in More Ways Than One
Increased material costs, labour shortages, longer build times and higher professional fees all contribute to higher claim settlements for insurers. As these costs rise , insurers must factor the increased cost of claims into their pricing models, which can place upward pressure on premiums across commercial and strata portfolios.
