AAA’s 2023 Apartment Living survey has highlighted some real concerns for the WA apartment sector, which if not addressed will erode consumer confidence and impact on off-the-plan sales.
The data which captured 800 owners’ views (residents and investors alike) showed that 70% were faced with defects, up from 60% in 2021.
Furthermore 79% wanted to have an independent audit of the building to confirm build quality and 60% an education kit, both up from 2021’s research.
Samantha Reece, CEO stated that increasing awareness of issues in the apartment sector was having an impact on consumer confidence.
“This is not just to do with developers and builders, the research also showed that only 5% felt that Government was doing a good job with consumer protection,” Ms Reece said.
“Plus, only 16% felt very comfortable with buying off the plan and this is significantly below the 60% threshold that most developments require for bank funding.
“In addition, 81% wanted to hold the developer more accountable in the case that the builder went bust, 63% were seeking home warranty insurance, 71% wanted mandated inspections and 70% wanted confirmation that building materials met Australian Standards.”
With the Building Confidence Report now five years on, WA is the only State that has not commenced implementing legislative changes.
“Our future is apartments and with existing tools in place, including developer rating tools, latent defect insurance and the like, there is no excuse for inaction,” Ms Reece said.
“AAA ultimately wants WA to become the safest place Nationally for apartment living but that requires Government intervention including licensing water proofing and fire installation as well as mandated inspections.
“We are calling on the Government to listen to apartment buyers and owners in conjunction with the development sector, because ultimately they are inter-related.”
The remainder of the research results will be made available at the end of May 2023.