The 2026 strata legislation brings a real shift for owners, committees, developers, and valuation professionals across New South Wales. The changes are designed to bring older schemes up to current expectations, raise safety and compliance standards, and equip buildings with stronger long-term financial planning.
For property owners, the updated legislation directly influences how valuations are conducted, how strata schemes are assessed, and ultimately, how property value is determined.
This overview breaks down the key legislative changes and explains how each one impacts valuation outcomes in 2026 and beyond.
Why the 2026 Strata Reforms Matter
Strata legislation updates typically influence three main areas:
- Building compliance and day-to-day upkeep
- Financial planning and major works
- How unit entitlements are set and shared
All three areas shape a property’s market value, influence its insurance needs, and affect its performance as a long-term investment.
The 2026 reforms aim to fix recurring problems in older NSW strata schemes, streamline processes that no longer work, and improve the financial strength of buildings heading into the next decade.
Key Strata Legislation Changes in 2026
1. Stricter Maintenance & Repair Obligations
The 2026 update raises the bar on maintenance expectations, especially for buildings older than ten years.
Key shifts include:
- More regular condition assessments
- A mandatory long-term maintenance forecast
- Clear responsibility for spotting and fixing defects
- Higher penalties when repairs are delayed or ignored
Impact on valuation:
Schemes that stay on top of maintenance and keep solid records tend to present as lower-risk, which usually supports stronger valuation outcomes.
Those who put off repairs often see the opposite, since buyers and insurers factor in the likelihood of higher costs down the track.
2. Stronger Capital Works Fund Rules
The reforms introduce changes to ensure capital works funds (CWF) are adequate, transparent, and supported by realistic forecasting.
New requirements include:
- Minimum CWF contribution levels for older or high-risk buildings
- More detailed 10-year capital plans
- Regular audits of fund adequacy
- Increased disclosure obligations for buyers and lenders
Impact on valuation:
A healthy capital works fund strongly supports valuation outcomes.
Insufficient or underfunded schemes may experience lower valuations due to elevated risk and future spending obligations.
3. Updated Unit Entitlement (UE) Assessment Standards
The legislation includes new guidelines to ensure unit entitlements are fair, consistent, and based on objective valuation principles.
This can influence schemes where:
- Unit entitlements were set long ago using earlier calculation practices
- Properties have been renovated or structurally altered since the original allocation
- There are ongoing arguments about whether contributions are being shared fairly
Impact on valuation:
Accurate UEs support more reliable valuations for both units and entire strata schemes.
Buildings with outdated unit entitlements may require a formal review, which can reshape levies, insurance expenses, and the value of each lot.
4. Increased Reporting & Transparency Requirements
The legislation also brings in new record-keeping duties, such as:
- Expanded disclosure requirements during sales
- Mandatory digital storage of strata records
- Expanded reporting requirements for larger schemes
- Quicker access to financial, maintenance, and insurance documents
Impact on valuation:
Easy access to complete, accurate records allows valuers to assess a property more reliably, improving valuation accuracy and reducing compliance uncertainty.
5. New Defect Reporting Standards for Buildings Under 10 Years
Developers and owners must now comply with the enhanced defect-reporting pathways.
This involves:
- More robust statutory inspection frameworks
- Clearer timelines for identifying and resolving defects
- Expanded responsibility for builders and developers
Impact on valuation:
Buildings with recent or undetected defects may yield lower valuations.
Schemes demonstrating a clear history of defect resolution generally secure more favourable outcomes.
How the 2026 Reforms Influence Property Value
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Better-Managed Schemes Receive Higher Valuations
A well-funded and well-maintained building is more attractive to buyers, lenders, and investors.
Strata schemes that meet legislative obligations are considered lower risk and typically command higher values.
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Improved Transparency Supports Lender Confidence
With stricter financial and reporting requirements, lenders can more accurately assess risk.
This increases borrowing confidence for units in compliant schemes, supporting stronger valuations.
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Deferred Maintenance Now Has a Larger Impact
Neglected repairs or underfunded capital works plans will have a more noticeable effect on valuation outcomes due to stricter compliance and penalty structures.
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Unit Entitlement Reassessments Can Shift Individual Lot Values
Adjusted UEs can influence:
- Levies
- Insurance premiums
- Share of common property
- Market attractiveness
This can either increase or reduce the value of individual lots depending on the direction of the adjustment.
Practical Steps Owners Should Take in 2026
To protect property value under the new legislation, strata owners and committees should:
- Review long-term capital works plans and ensure they meet new requirements
- Conduct a current building condition assessment
- Confirm insurance valuations are recent and compliant
- Ensure strata records are digitised and easy to access
- Consider independent unit entitlement assessments where needed
- Address any known defects promptly.
Taking a proactive approach supports stronger valuation outcomes and prevents future compliance issues.
FAQs About Strata Legislation 2026 and Valuations
Will the new legislation increase my strata levies?
Potentially. Stricter maintenance and capital fund requirements may lead to higher contributions, but they also help protect long-term property value.
Does my building need a new valuation in 2026?
Many schemes will benefit from updated valuations for insurance, compliance, capital works planning, or UE assessments.
Will the new laws affect older strata buildings more?
Yes. Older buildings face stricter maintenance and reporting obligations, making valuations and record-keeping even more important.
Do the changes impact stamp duty or market valuations?
Yes. A building’s compliance, maintenance status, and financial health directly influence market value and can affect valuations for stamp duty, refinancing, or sales.
Why Accurate Strata Valuations Matter in 2026
Professional valuations are essential for:
- Insurance compliance
- Capital works planning
- Strata reporting obligations
- Buy/sell decision-making
- Refinancing and lending requirements
- Unit entitlement assessments
With higher standards placed on strata schemes, the accuracy and defensibility of valuations have never been more important.
Need a Reliable Valuation Under the New 2026 Legislation?
The 2026 reforms bring significant changes, and accurate valuation is essential for navigating them with confidence. Whether the requirement is for insurance valuations, capital fund planning, market assessments, or unit entitlement reviews, a professional, independent valuation can make all the difference.
If you need guidance through the new requirements, Keen Property can step in with strata, insurance, and market valuation services. Reach out to us for a valuation that helps you move forward with clarity and confidence.