Governing the compact city STRATA DATA Residential Strata in NSW A summary analysis Issue 3, March 2011 City Futures Research Centre Cover photograph: Bruce Judd, 2010
Governing the Compact City Strata is the fastest growing form of residential property ownership in Australia. Over half the new dwellings to be built in our metropolitan areas over the next decades will be strata titled. The growth of this sector raises increasingly important questions over property ownership and governance. Governing the Compact City is a two-year research project charting the key issues facing the governance and management of strata buildings, with a focus on NSW. It is the first major study of the strata sector undertaken in Australia, and will thus inform practice and policy development on a national scale. The research has three main aims: 1. To explore the role, capacity & effectiveness of owners corporations as agencies of property governance and management. 2. To explore the capacity & effectiveness of strata managers as mediators of outcomes for owners and residents in strata & their role within the overall structure of management & governance. 3. To assess how well residential strata works from strata owners points of view. The project is being undertaken by researchers on the High Density Living Program team at the City Futures Research Centre (www.fbe.unsw.edu.au/cf/highdensityliving/). Funding and support to carry out this project have been received from the National Competitive Grants Program run by the Federal Government s Australian Research Council and from the following government, peak body and industry partners: CITY FUTURES RESEARCH CENTRE City Futures is a University Research Centre dedicated to developing a better understanding of our cities, their people, the policies that manage their growth the issues they face, and the impacts they make on our environment and economy. Based in the Faculty of Built Environment at UNSW, City Futures is interdisciplinary in outlook and activity. It draws on the skills and knowledge of those within the Faculty whose knowledge encompasses the physical and spatial aspects of urban living, as well as those in other Faculties in the University whose interests coincide with our focus on the city. The core activity for City Futures is research. It offers a place where scholars can pursue research on aspects of urban development and change. But it also focuses outwards, engaging with the wider audience beyond the University. Wherever possible, City Futures works in partnership with the community, government and business to contribute to growing the evidence base on the issues that impact on urban regions and how we can better manage their dynamic progress. City Futures also has a strong focus on the training of the next generation of urban research scholars through an active postgraduate research program. We are committed to expanding the skills and capacity of young urban researchers and to communicating the value of good research to those involved in making policies that impact on the city. 1 City Futures Research Centre 2010 Together with colleagues in other institutions who share our focus and passion, City Futures is committed to research and training that will contribute to better urban outcomes for Australia and beyond.
Data Overview The maps and table in this document are based on information retrieved from the New South Wales (NSW) Land and Property Management Authority Strata Database in January 2011. The data presented pertains to residential strata schemes. To capture all strata properties used for the purpose of residence, residential schemes and lots reported in this newsletter include the zoning categories of A (Residential), B1 (Neighbourhood Centre), B2 (Local Centre), B3 (Commercial Core), B4 (Mixed Use), D (Mixed Use Development), E4 (Environmental Living), M (Mixed Residential / Business), R1 (General Residential), R2 (Low Density Residential), R3 (Medium Density Residential), R4 (High Density Residential), RU4 (rural small holdings), V (Comprehensive Centre) and Z (Undetermined, or Village). Commercial schemes are not included. Some non-residential lots may be included in the presented figures, for example where they form part of a mixed use development. Number residential and mixed use schemes (page 4) In January 2011, there were 66,651 residential strata schemes in NSW, of which 42,601 (63.9%) were in the Sydney metropolitan area. Within the Sydney metropolitan area, the highest numbers of residential strata schemes remained in the Local Government Areas (LGAs) of Sutherland (2,851), Gosford (2,495) North Sydney (2,437) and Randwick (2,355). There were also high numbers of residential schemes in major regional centres including Wollongong (2,270) and Newcastle (1,594), and regional LGAs including Tweed (2,284), Ballina (1,289) and Coffs Harbour (1,249). Number of residential and mixed use lots (page 5) In January 2011, there were 586,198 residential strata lots in NSW, of which 477,566 (81.5%) were in the Sydney metropolitan area. Within the Sydney metropolitan area, the highest numbers of residential strata lots remained in the LGAs of Sydney (57,986), North Sydney (27,800) and Sutherland (26,097). Residential strata schemes in Sydney LGA retained the highest average number of lots (34.8) per scheme. Outside of the Sydney metropolitan area, Wollongong LGA had the highest number of residential strata lots in NSW (14,885), followed by Tweed (11,104) and Newcastle (10,070). Percentage owner occupied and investor-owned lots (pages 6-7) Owner-occupation and investor-owned lots are calculated by comparing the address of a lot with the registered address of its owner. When the two addresses match, a lot is noted as owner-occupied; if the two addresses do not match, the lot is noted as investor-owned. As such, these figures should be considered an estimate only. In January 2011, almost half (48.6%) of the residential strata lots in NSW were owner-occupied. There was a higher proportion of owner-occupied lots in the Sydney metropolitan area (50.1%) than in the rest of NSW (42.1%). Within the Sydney metropolitan area, the highest concentration of owner-occupied lots were found in the LGAs of Bankstown (65.2%), Pittwater (65.1%) and Ku-ring-gai (63.9%). In January 2011, just over half (51.3%) of the residential strata lots in NSW were investor-owned. There was a higher proportion of investor-owner lots in the rest of NSW (57.9%) than in the Sydney metropolitan area (49.8%). Within the Sydney metropolitan area, the highest concentrations of investor-owned residential strata lots were found in the LGAs of Woollahra (60.2%), Camden (60.1%) and Waverley (59.3%). 2 City Futures Research Centre 2010
Percentage of schemes of 100 lots or more (page 8) In January 2011, within the Sydney metropolitan area, Sydney LGA had the highest concentration of large strata schemes (9.2%); followed by Auburn (2.0%) and Canada Bay (1.8%) LGAs. Outside of the Sydney metropolitan area, Tweed had the highest concentration of large residential strata schemes in NSW (0.3%). Scheme registration dates (pages 9-10) Information regarding the registration dates of strata schemes can be used as an approximation for the age of buildings. However, the registration date of a scheme may be years after its construction. For example, a 60 year-old warehouse building may have only been converted into a 30-lot strata scheme five years ago. In January 2011, 20.9% of residential strata schemes in NSW were registered prior to 1980. There was a higher concentration of older strata schemes in the Sydney metropolitan area (28.9%) than in the rest of NSW (6.9%). Within the Sydney metropolitan area, Rockdale (59.7%), Botany Bay (59.4%) and Ashfield (53.0%) LGAs had the highest concentration of schemes registered 30 or more years ago. In January 2011, 5.6 % of residential strata schemes in NSW were registered within the last 3 years (since 2008), with a higher concentration of these found in the rest of NSW (7.1%) than in the Sydney metropolitan area (4.7%). Within the Sydney metropolitan area, the highest concentration of recently registered schemes were found in the Ku-ring-gai (14.8%), Camden (11.0%) and Penrith (9.3%) LGAs. Outside of the Sydney metropolitan area (excluding LGAs with less than ten schemes total), Muswellbrook (45.6% of its 68 schemes) and Cessnock (37.1% of its 175 schemes) LGAs had the highest concentrations of newly registered schemes. Definitions LGA Sydney metropolitan area Mixed use Local Government Area Refers to Sydney Statistical Division, as defined by the Australian Bureau of Statistics and includes the 43 LGAs as listed in Table 1. A strata scheme that includes residential lots, and is also used for other purposes (e.g. shops, offices, hotels, restaurants etc.) For further information about this research project, please visit: http://www.fbe.unsw.edu.au/cf/research/cityfuturesprojects/governingthecompactcity Or contact: Dr Hazel Easthope City Futures Research Centre Faculty of the Built Environment University of New South Wales Sydney NSW 2052 Phone: (02) 9385 6041 Email: hazel.easthope@unsw.edu.au 3 City Futures Research Centre 2010
Maps 1 and 2: Number of residential and mixed use schemes* for NSW and Sydney by LGA, January 2011 * Mixed use may include non-residential lots. See page 2 for explanation.
Maps 3 and 4: Number of residential and mixed use* lots for NSW and Sydney by LGA, January 2011 5 City Futures Research Centre 2010 * Mixed use may include non-residential lots. See page 2 for explanation.
Maps 5 and 6: Percentage of lots owner occupied * for NSW and Sydney by LGA, January 2011 6 City Futures Research Centre 2010 * Estimate only. See page 2 for explanation.
Maps 7 and 8: Percentage of lots investor owned* for NSW and Sydney by LGA, January 2011 * Estimate only. See page 2 for explanation. 7 City Futures Research Centre 2010
Maps 9 and 10: Percentage of residential and mixed use schemes with 100 lots or more for NSW and Sydney by LGA, January 2011 8 City Futures Research Centre 2010
Maps 11 and 12: Percentage of residential & mixed use schemes registered* prior to 1979 for NSW and Sydney by LGA, January 2011 9 City Futures Research Centre 2010 * Strata registration date may not be the same as building age. See page 3 for explanation.
Maps 13 and 14: Percentage of residential & mixed use schemes registered* in the last 3 years for NSW and Sydney by LGA, January 2011 10 City Futures Research Centre 2010 *Strata registration date may not be the same as building age. See page 3 for explanation.
Table 1: Summary table of strata data for residential and mixed use schemes in Sydney by LGA, January 2011 (for data relating to other NSW LGAs, please contact City Futures). LGA No. of schemes No. of lots % Owner occupied % Investorowned % 100+ schemes % Schemes registered prior 1980 % Schemes registered last 3 yrs Ashfield 591 7,553 48.8% 51.2% 0.3% 53.0% 2.5% Auburn 740 10,718 46.0% 54.0% 2.0% 24.1% 4.9% Bankstown 1,191 10,068 65.2% 34.8% 0.0% 9.2% 4.4% Blacktown 950 9,592 58.6% 41.4% 0.1% 0.3% 7.3% Blue Mountains 187 977 45.3% 54.7% 0.0% 8.0% 7.0% Botany Bay 471 6,252 48.9% 51.1% 0.2% 59.4% 4.2% Burwood 258 3,774 44.0% 56.0% 0.0% 36.4% 5.4% Camden 127 715 39.9% 60.1% 0.0% 0.0% 11.0% Campbelltown 827 6,389 50.4% 49.6% 0.2% 10.2% 3.3% Canada Bay 914 15,692 47.0% 53.0% 1.8% 33.2% 6.8% Canterbury 1,765 16,484 54.6% 45.4% 0.0% 44.2% 3.3% Fairfield 720 8,546 57.6% 42.4% 0.4% 34.3% 2.6% Gosford 2,495 10,431 47.4% 52.6% 0.1% 4.8% 4.1% Hawkesbury 551 1,826 57.6% 42.4% 0.0% 1.6% 4.7% Holroyd 906 9,660 43.2% 56.8% 0.0% 9.1% 5.0% Hornsby 1,127 11,636 55.9% 42.1% 1.0% 15.7% 1.2% Hunters Hill 169 1,415 58.3% 41.7% 0.0% 31.4% 4.7% Hurstville 1,032 9,161 62.8% 37.2% 0.0% 29.4% 3.8% Kogarah 875 7,276 58.5% 41.5% 0.0% 42.4% 3.8% Ku-Ring-Gai 515 7,631 63.9% 36.1% 0.8% 29.3% 14.8% Lane Cove 443 7,405 45.8% 54.2% 1.1% 51.2% 1.8% Leichhardt 558 6,363 43.0% 57.0% 1.3% 16.8% 4.3% Liverpool 786 8,973 45.9% 54.1% 0.8% 14.9% 6.5% Manly 1,192 8,321 48.0% 52.0% 0.0% 49.0% 3.4% Marrickville 659 8,833 55.7% 44.3% 0.6% 33.7% 5.2% Mosman 771 7,216 47.0% 53.0% 0.1% 44.4% 3.4% North Sydney 2,437 27,800 41.7% 58.3% 0.6% 38.6% 3.6% Parramatta 1,559 19,351 46.3% 53.7% 0.5% 14.5% 6.9% Penrith 1,290 8,387 55.4% 44.6% 0.0% 6.1% 9.3% Pittwater 348 3,651 65.1% 34.9% 0.0% 35.9% 6.9% Randwick 2,355 22,746 45.7% 54.3% 0.3% 44.9% 3.9% Rockdale 1,435 17,608 53.5% 46.5% 0.3% 59.7% 1.8% Ryde 1,377 17,169 46.2% 53.8% 0.7% 31.7% 4.3% Strathfield 290 5,298 46.4% 53.6% 1.4% 31.4% 6.6% Sutherland 2,851 26,097 62.1% 37.9% 0.1% 16.3% 4.1% Sydney 1,666 57,986 44.4% 55.6% 9.2% 16.4% 7.5% The Hills Shire 605 6,663 58.9% 41.1% 0.3% 0.5% 6.1% Warringah 1,496 17,074 56.8% 43.2% 0.2% 50.3% 4.1% Waverley 1,577 15,587 40.7% 59.3% 0.1% 51.0% 3.9% Willoughby 533 8,938 45.4% 54.6% 1.1% 35.8% 3.8% Wollondilly 62 381 56.5% 43.5% 0.0% 1.6% 8.1% Woollahra 1,403 13,608 39.8% 60.2% 0.5% 44.2% 4.1% Wyong 1,230 6,315 41.6% 58.4% 0.0% 9.7% 4.6% Sydney Metropolitan Area 42,601 477,566 50.1% 49.8% 7.1% 28.9% 4.7% Balance of NSW 24,050 109,349 42.1% 57.9% 0.05% 6.9% 7.1% NSW 66,651 586,915 48.6% 51.3% 0.5% 20.9% 5.6% 11 City Futures Research Centre 2010