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News

How Airbnb is putting pressure on rent prices

New modelling from the Reserve Bank shows Airbnb is having a definite effect on rental prices despite the company’s assertions its business model doesn’t affect Australia’s housing market. University of Sydney professor Peter Phibbs said the “sharp link” between rents and vacancies rates – highlighted by Monday’s RBA report – demonstrated that home-share services like Airbnb are influencing the housing market. “Airbnb spends a lot of time saying they have no impact on markets. What this paper shows is that they do,” he said.
The New Daily
Killian Plastow

What’s in the Lacrosse VCAT judgement for owners of defective apartments and policy makers?

Despite the wailing of design consultants about the implications of the Lacrosse judgement and the Opal Tower engineering report, the importance of a viable Design and Construct constructor in these cases has proved critical to a way forward. The experiences and the processes that apartment owners have endured is unreasonable in a modern construction industry. It is evident that better design management skills, risk management and trustworthy performance assurance capabilities are needed to define the quality and resilience of future construction. Unfortunately, the owners of less visible and dramatic residential dwellings affected by these defects have virtually no voice in making their case for restitution. But they vote. And in the end, just as in the case of New Zealand’s Leaky Buildings or the ACT’s Mr Fluffy, a solution must be found. A far more wide-ranging construction industry inquiry is justified. This is why only a 10-year insurance warranty for residential apartments covering the structure, envelope, basement and waterproofing for new-builds from 2020 is viable.
The Fifth Estate
David Chandler

Cladding and cracking towers prompt call for royal commission

The Builders Collective of Australia, has called for a royal commission into the national industry in the wake of combustible cladding on residential towers and cracked concrete in Sydney's newly completed Opal Tower, citing failures within Australia’s residential construction sector.” Stephen Goddard, solicitor and spokesperson for owner advocacy group Owners Corporation Network of Australia, said he backed a royal commission but acknowledged new home buyers had been the “victim" of multiple inquiries and "we still don’t have any consumer protections.” Mr Goddard said deregulation and a lack of accountability from designers, engineers, architects and builders had resulted in a "loss of public confidence" in strata living and purchasing new apartments off the plan.  “If you know you have an 85% chance of buying into a defective building, why would buy off the plan especially if neither the builder nor developer owes you duty of care?," he said.
The Sydney Morning Herald
Simon Johanson

Labor Promises Strata Commissioner to Tackle Defects

A dedicated Strata Commissioner to protect apartment owners and residents and restore confidence in the strata sector will be introduced by the Labor Party, should it win office at the upcoming state election. “A commissioner solely focussed on strata is long overdue,” says Phil Gall, chair of OCN, which is running a seminar on cladding issues on March 16 in Sydney. “Fair Trading is overloaded with concerns that have absolutely nothing to do with housing, home ownership or community. “Far too many stories cross our desks of people being misled and misinformed about their rights, then channelled into a dispute system that is all about compromise, rather than right or wrong. You just have to look at how the short-term letting, cladding and defects issues have been handled to realise a strong strata-focussed voice in the system can only be an improvement.” He said everyone would welcome the creation of a Strata Commissioner under the umbrella of a Ministry of Housing that oversaw every aspect of residential development, from planning to defects resolution and community concerns. That comes on top of Labor’s planned overhaul of the building, development and residential sector by creating a new Building Authority and drafting a new Building Act, while removing property services out of Fair Trading into an expanded building and property services division.
Flat-Chat Podcast
Jimmy Thomson

NSW state election 2019: Labor to introduce strata commissioner if it is elected

A dedicated strata commissioner to protect apartment owners and residents against Opal Tower-style building defects will be introduced by Labor should it win office at this month’s state election.  The opposition’s better regulation spokeswoman Yasmin Catley confirmed to Domain that Labor plans to create an office to oversee all strata issues, but with particular focus on defects in newly constructed buildings. “A commissioner solely focused on strata is long overdue,” said OCN chair Phil Gall. “Fair Trading is overloaded with concerns that have absolutely nothing to do with housing, home ownership or community. “Far too many stories cross our desks of people being misled and misinformed about their rights, then channelled into a dispute system that is all about compromise, rather than right or wrong. You just have to look at how the short-term letting, cladding and defects issues have been handled to realise a strong strata-focused voice in the system can only be an improvement.”
Domain
Jimmy Thomson and Sue Williams

After Opal: Historic opportunity to reverse sorry record

Whoever is in government at the end of the month will have an opportunity to overhaul the state’s building laws to significantly improve the quality of residential construction in NSW. Cynical readers of recent history might question if either side of politics will take advantage of that opportunity. Yet the chance is there, provided the politicians can be pressed to take it. The chance arises because of the widespread acceptance, in the wake of the Christmas Eve cracking of the Opal Tower, that dramatic measures are required to ensure people can buy and live in apartments that won’t crumble around them.
The Sydney Morning Herald
Jacob Saulwick

Lacrosse apartment owners awarded $5.7 million in damages after flammable cladding blaze

The owners of apartments at Melbourne's Lacrosse tower in Docklands have won more than $5.7 million in damages in a lawsuit launched after a fire fuelled by flammable cladding caused significant damage to the building in November 2014. The Lacrosse blaze caused millions of dollars of damage to the 21-storey building, prompting apartment owners to launch legal action against the builder, LU Simon, in a bid to recoup more than $12 million in damages, covering the cost of replacing non-compliant cladding, damaged property, additional insurance premiums and "anticipated future losses". In a decision handed down in the Victorian Civil and Administrative Tribunal (VCAT) by Judge Ted Woodward on Thursday, LU Simon was ordered to pay more than $5.7 million to apartment owners.  However, most of that money would be paid to LU Simon by the architect, fire engineer and building surveyor who worked on the project, after Judge Woodward found they had breached contractual obligations.
ABC News
Joseph Dunstan

NSW government says design and construction at Opal breached codes and standards

Non-compliant construction and structural design at Sydney's Opal Tower were responsible for the "rare" defects at the Olympic Park building and should lead to more compliance red-tape for the building industry, a final investigation by the NSW government found.
The Australian Financial Review
Su-Lin Tan

Opal 'tip of the iceberg' of Australia's high-rise building problems: Weir

Sydney's Opal Tower was the "tip of the iceberg" and more building failures would occur if state governments didn't follow through with a set of planned reforms, construction lawyer Bronwyn Weir said. "Opal is the manifestation of a system in trouble," said Ms Weir, who with academic Peter Shergold last year authored a key industry report with recommendations that all states and territories have agreed to implement. Without serious reform it was "quite inevitable" that more such failures would occur, Ms Weir told The Australian Financial Review after publication of the Opal Tower report on Friday.
The Australian Financial Review
Michael Bleby

Cladding crisis spreads into the suburbs as nine more materials are classed as non-compliant

Thousands more homeowners could now find themselves caught up in Australia's cladding crisis, after authorities issued an alert banning the use of another nine types of cladding. The decision, by Australia's leading building product accreditation agency, to withdraw support for the cladding materials has left industry experts stunned and residents potentially facing massive rectification costs.
ABC News
James Oaten

Strata loophole leaves owners vulnerable even when NCAT is supposed to be on their side

Every time Jan Newland leaves her apartment in a building on Sydney’s lower north shore, she checks the sky for signs of rain. And if there are darkening clouds, she pushes her lounge room furniture into the middle of the room, rolls up part of her carpet, puts down containers and hopes against hope it doesn’t rain. Newland has had leaks coming through her ceiling since work to remedy concrete cancer was undertaken by her owners corporation on the apartment upstairs in 2011. And ever since, she’s faced a dripping ceiling every time it rains, despite an order to her strata committee from the NSW Civil and Administrative Tribunal in January 2017 to have the problem fixed immediately.
Domain
Sue Williams

Parliamentary Panic Behind Short-Term Letting U-turn

Why talk with Alex Greenwich?  Becasue his constituency has more high-rise apartments than any other in Australia. So this podcast is the first of two parts in which we discuss the strata issues of the day – Airbnb, cladding, defects  … and pets. The highlight of the chat, for me, was his description of how a last-minute push by the Owners Corporation Network (and a few like-minded souls) alerted MPs in constituencies with large numbers of apartment blocks that they were about to be effectively handed over to Airbnb and other online letting agencies to be used for holiday lets, regardless of the devastating effects of strata communities.
Flat-Chat
Jimmy Thomson

What Members Say

"The whole strata community owes a huge debt of gratitude to you and the OCN executive. Much appreciated."

Robert, Darlinghurst

"I am very pleased with my membership of OCN, the discussions through sharing emails is very valuable in increasing my knowledge of strata living, the laws and EC responsibilities. I think I am better armed to tread the minefield of the managing agent responsibilities and the necessary action of the EC to monitor the contradictory interests of the agent."

Jim, Wollstonecraft

"I so appreciate being part of the OCN email forum. It provides a great opportunity for sharing ideas and learning"

Ingrid, Neutral Bay

"I must say that I have enjoyed and found consolation in the discussions that have been part of the email chain (forum). I did attend one general meeting and found that it was informative and the people "running the show" were knowledgeable and dedicated to the tasks that had taken on. In short, well done. You and the committee have and continue to support the Strata Community in a very professional manner."

Greg, Parramatta

"Nothing is easy in Strata World and we have been in building defects “mode” for some years – hopefully almost at an end but that process has been most demanding and difficult but again – greatly helped by the experience and wise counsel of other members of OCN."

Pat, St Leonards

"Keep up the good work, as many (if not most) strata schemes need your help, advice and representation at all levels of government."

Jann and John, St Ives

"I belong to OCN because of its professionalism.  I have found the meetings I have been to extremely well presented, to the point, and of course very topical and informative. Speakers on the whole certainly know their topic.  My role of Secretary last year was certainly assisted with the coverage regarding TPG & other subjects. Member newsletters are also of benefit as the topics are specific to strata matters."

Graham, East Balmain

I have enjoyed attending the quarterly OCN meetings and the exchange of emails between other Executive Committee Members and think OCN is playing an increasingly important role as a voice for strata dwellers and representing us at Government level. I wish the organisation continuing success in the future."

Pauline, Kings Cross

"The [forum] response to my question was amazing and really useful.  The OCN community is wonderful so thanks."

Jenny, Killara

"I would like to thank you all for the important effort that you are all putting in to look after apartment owners and tenants. It is so valuable and you are heroes. I would not have been able to deal with my duties as a strata chairman without your advice and assistance." 

Angela, Mascot

"The OCN is invaluable – many thanks."

Bill, Surry Hills

"OCN is proving invaluable"

Sue, Neutral Bay

"Thanks to all at OCN for your continuing efforts to keep us up to date with current strata information and advice...it has been very helpful to us"

Kate, Coogee

"When my wife & I first encountered a problematic Executive Committee I heard that OCN was a great help (from a Strata manager whom I knew) so we both joined and have gratefully used the on-line information sources. We continued to happily rely on OCN’s assistance when we progressed to Committee status & later as Chair & Secretary of our Committee. I still use OCN in my current role as Treasurer."

Peter, Chiswick

"Thanks to OCN for being such a rich resource of trustworthy information about strata matters."

Peter, Chiswick

"I wanted to extend my personal thanks for the very informative & interesting event today. The OCN team did an outstanding job in the organisation of this event & I enjoyed it thoroughly. The quality of speakers, the flow of conversation & interaction from the attendees - first class …& of course, the amazing Jimmy T - always a delight."

Sue, Epping

"OCN does a great job in providing a really valuable service to Strata owners."

Lois, Wollongong

"I am sure my appreciation of your good works is echoed by many in the Stratasphere. Keep up the good work."

John, Elizabeth Bay

"Once again, being able to discuss such things through this forum, helps clear the mind, puts things into perspective and helps one to understand their rights and to form a strategy if needs be. As a simple EC member trying to do what is in the best interests of lot owners, I truly value OCN and am grateful."

Pamela, Point Lookout

"The OCN is probably one of the best, most informed and most informative groups I have been involved with."

Alan, Maryville