CHU Releases 2025 Strata Market Report
SYDNEY, Australia – 18 November 2025: CHU, Australia's largest strata insurance underwriting agency, has released its 2025 State of the Strata Market outlining key industry statistics, trends and market forces shaping the strata industry.
The report highlights impact from economic pressures, regulatory reform and weather events. It investigates strata affordability, the frequency of weather events, strata regulator reforms, emerging risks and sustainability.
"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." said Kimberley Jonsson, Chief Executive at CHU.
"The CHU 2025 State of the Strata Market sheds light on the key trends impacting the industry and how insurers, underwriters, brokers and strata managers can strengthen strata communities now and into the future."
Affordability
While inflation has eased across the country, households are still dealing with increased costs that recent inflation has created, highlighting the topic of affordability.
The CHU 2025 State of the Strata Market shows strata insurance premiums rose just 2.8% in the twelve months to June 2025 – from $954 to $981 per lot annually – while household incomes grew 3.4%, maintaining insurance affordability for apartment owners.
In contrast, house insurance premiums surged 14%, five times faster than strata premiums, driven by concentrated climate risks and structural vulnerabilities in standalone properties.
"In real terms, strata insurance remains affordable, which is great news for strata owners and for the wider industry. This is an opportunity for strata managers and brokers to help communicate to owners that, while premiums may grow, they are remaining relatively affordable," said Ms Jonsson.
Weather Events
In 2025, Australia experienced a series of weather events that underscore the climate risk faced by strata. Catastrophes intensify pressure on communities, insurers, and governments to accelerate support, resilience, and risk-mitigation measures.
The climate risk faced by strata is demonstrated by the range of cyclones, floods and storms in the first six months of this year, including Tropical Cyclone Zelia, Ex-Tropical Cyclone Alfred, and widespread flooding across multiple states.
Despite these challenges, the September 2025 review of the Australian Reinsurance Pool Corporation's Cyclone Pool confirmed premiums for strata properties would remain unchanged, with the review finding overall pricing adequate.
Regulation and Legislation
Regulatory reviews across three states and territories representing 40% of Australia's strata titles are bringing sharper focus to transparency, consumer protections, and professional standards.
New South Wales has introduced tougher accountability measures for strata managers, including standardised maintenance planning, greater conflict disclosure, and stronger hardship protections.
Western Australia is moving toward professionalisation of strata management with proposed Certificate IV qualifications and defined role structures, while the ACT is reviewing potential reforms including licensing requirements.
“When standards are formalised in regulation, it provides all of us in the industry, along with owners and committees, confidence in the consistent standard of service in strata.”
“I believe professionalisation is the way forward for the strata sector. It’s recognition that what strata managers do requires expertise, judgement and professional accountability,” Ms Jonsson added.
Buildings, Safety and Risk
Defects and cladding remain a pressure point for the industry, with new precedents tightening builder accountability. The 2025 NSW Strata Defects Survey opened to collect data on how defects including cladding, and maintenance management is evolving and where stronger regulation may be needed.
Another significant safety concern has become lithium-ion batteries. Western Australia's fire service confirmed 94 lithium battery fires by August 2025. In NSW alone, 25 had already occurred by February 2025, highlighting the significance of this risk. Regulators have issued new safety guidelines, and many strata managers are now embedding formal battery management policies.
Looking forward to 2026
The report signals that affordability, climate resilience and regulatory compliance will remain central themes for the sector, with major reforms scheduled in NSW, the completion of Western Australia's five-year strata law review, and the next ARPC Cyclone Pool assessment expected in late 2026.
To download the full CHU 2025 State of the Strata Market, visit the CHU website here.
About CHU
Since creating the first strata plan insurance policy in 1978, CHU Underwriting Agencies has grown to become one of Australia’s largest strata insurance specialists. CHU strata insurance covers approximately 1 million apartments, units, villas and townhouses across Australia. CHU also offers Commercial Strata Insurance as well as Contents Insurance and Landlords Insurance for strata property owners.
Media Contacts
mediaenquiries@chu.com.au
