NSW Strata Disputes Have Quadrupled Since 2017

·7 min read

In 2017, NSW courts and tribunals published 66 decisions involving strata schemes. In 2025, that number was 295 — a 347% increase in eight years. The growth isn't gradual. It's accelerating.

We analysed 1,986 published strata-related court and tribunal decisions from 1999 to early 2026 to understand what's driving the surge — and what it means if you're buying an apartment in NSW.

66

Cases in 2017

295

Cases in 2025

347%

Growth (2017–2025)

1,986

Total decisions analysed

The growth curve

Strata disputes weren't always this common. Through the early 2000s, published decisions trickled in at single-digit rates — 3 in 1999, 7 in 2001, 5 in 2004. The first real acceleration came around 2009, when cases jumped from 15 to 33, coinciding with the expansion of NCAT's predecessor tribunals.

But the steepest growth has come since 2017:

Published strata decisions per year (2017–2025)

2017
66
2018
92
2019
126
2020
130
2021
168
2022
221
2023
197
2024
193
2025
295

2026 data is partial (45 cases through early March).

The dip in 2023–2024 is notable — cases dropped from 221 to around 195 before surging to 295 in 2025. The 2025 number is the highest on record, and 2026 is on pace to match or exceed it (45 decisions published in the first two months alone).

What's driving the surge

Several factors are converging to push strata disputes upward:

1. More apartments, more disputes

NSW has been on an apartment building boom. More strata buildings means more owners corporations, more shared walls, more committees, and more potential for conflict. The raw number of strata schemes in NSW has grown significantly — there are now over 88,000 registered strata plans in the state.

2. The defect wave

Buildings constructed during the 2010s boom are now aging into their defect-discovery years. Statutory warranty periods under the Home Building Act 1989 are 6 years for major defects and 2 years for minor ones. Buildings completed between 2012 and 2019 are hitting or passing those deadlines, creating urgency to file claims before time runs out.

3. Post-Grenfell cladding audits

After the 2017 Grenfell Tower fire in London, NSW launched building cladding audits under the Building Products (Safety) Act 2017. Buildings identified with combustible cladding face mandatory rectification — and when owners and developers disagree about who pays, the matter ends up in court.

4. Stronger regulatory powers

The Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 gave regulators new tools to issue building work rectification orders and stop-work orders. More regulatory intervention means more disputes about compliance, scope of repairs, and cost allocation.

5. Higher stakes, more willingness to litigate

As apartment values have risen, so has the financial incentive to fight. A $50,000 special levy for facade repairs hurts more when your apartment is your primary asset. Owners corporations are increasingly willing to pursue claims — and developers are increasingly willing to contest them.

Building defects dominate

Our earlier analysis of dispute categories found that building defects are the single largest category of substantive strata disputes, accounting for nearly 30% of cases. This makes sense given the timing: the construction boom of the 2010s produced a large volume of new buildings, many of which are now discovering latent defects as they age.

The warranty cliff

Under the Home Building Act 1989, statutory warranties for major defects expire 6 years after completion. A building completed in 2018 hits that deadline in 2024. A building completed in 2019 hits it in 2025. We're in the middle of a wave of buildings reaching their warranty expiry — which means 2025's record case count may not be the peak.

What this means for buyers

The acceleration in strata disputes has practical implications for anyone buying an apartment in NSW:

Due diligence is more important than ever

With disputes increasing 4x in eight years, the odds that your building has been — or will be — involved in litigation are higher than they've ever been. Check the building's tribunal history, read the strata report carefully, and pay attention to the capital works fund balance.

Watch the building age

Buildings between 5 and 15 years old are in the danger zone — old enough for defects to emerge, young enough for warranty claims to be viable (or just expired). A building completed in 2015 is now 11 years old. If it has latent defects, they're likely surfacing now.

Factor in litigation costs

Even when an owners corporation wins, litigation is expensive. Legal fees, expert reports, and levies to fund the action all come from owners' pockets. Ask about any pending or planned legal proceedings — and check the meeting minutes for any mentions of “legal advice,” “building defects,” or “special levy.”

Sources & citations

Methodology: The count represents published decisions only — NCAT publishes decisions selectively, so the actual number of tribunal applications is significantly higher. Year-on-year changes may also reflect changes in NCAT's publication practices, not just underlying dispute volumes.

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