CHU's 2025 Strata Market Report: Insights into Industry Dynamics

One of the key findings of the report is the relative stability of strata insurance premiums. In the year leading up to June 2025, premiums increased by 2.8%, with the average annual premium per lot rising from $954 to $981. This growth rate is notably lower than the 3.4% increase in household incomes over the same period, indicating that strata insurance remains affordable for apartment owners. In contrast, premiums for standalone house insurance surged by 14%, underscoring the competitive advantage of strata living in terms of insurance costs.

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 concluded that premiums for strata properties would remain unchanged, affirming the adequacy of current pricing structures.

Regulatory developments are another focal point of the report. Reviews in New South Wales, Western Australia, and the Australian Capital Territory are introducing new requirements aimed at enhancing transparency, consumer protection, and professional standards within the strata sector. These reforms are expected to have a profound impact on how strata properties are managed and insured.

Emerging risks, such as building defects and the rise in lithium-ion battery fires, are also addressed in the report. The 2025 NSW Strata Defects Survey has been initiated to gather updated data on the prevalence and management of defects, while new safety guidelines have been issued to mitigate the risks associated with lithium-ion batteries.

Looking ahead, the report forecasts that affordability, climate resilience, and regulatory compliance will remain central themes for the strata insurance sector. CHU's CEO, Kimberley Jonsson, emphasized the opportunity for the strata sector to set new standards for urban living in Australia, given the increasing number of Australians residing in strata properties.