Strata Fees in NSW Explained: What Every Buyer Should Know

Thinking about buying a unit, townhouse, or apartment in NSW? There’s one cost that often catches buyers by surprise – strata fees.

These regular payments are part and parcel of strata living, covering everything from hallway lighting to pool maintenance. But before you sign on the dotted line, it’s worth understanding exactly what strata fees are, what they cover, and how to avoid being blindsided by unexpected costs down the track.

Let’s break it down – plain and simple.

What Are Strata Fees?

Strata fees (also called levies) are your share of the costs to maintain the common areas in a strata-titled property. 

Strata fees in NSW are regular payments that lot owners contribute to cover the costs of maintaining, repairing, and managing the building’s shared spaces. Also referred to as strata levies, these are mandatory for all lot owners within a strata scheme, helping cover essential services like cleaning, repairs, insurance, and administrative expenses.

Source: Strata Sense

That includes spaces and features like:

• Gardens and lawns
  
• Building exteriors and roofs
  
• Hallways, stairs, and lifts
  
• Shared facilities like pools, gyms, and BBQ areas
  
• Insurance and general maintenance

Essentially, it’s a communal kitty that all owners chip into to keep the property in good shape.

The Three Types of Strata Fees in NSW

There are three main types of strata fees you’ll come across:

Administrative Fund Levy

This covers day-to-day running costs like cleaning, gardening, electricity for common areas, and minor repairs.

Capital Works Fund Levy

Formerly known as the sinking fund, this levy is for bigger, long-term expenses like replacing lifts, repainting the building, or fixing the roof.

Special Levies

These are the wildcards. If something unexpected comes up (like urgent repairs) and there’s not enough in the fund, all owners may be asked to pay extra. Special levies can be expensive, so checking if any are planned before buying is important.

How Much Are Strata Fees in NSW?

There’s no one-size-fits-all number. Strata fees vary depending on things like:

• The size and age of the building
  
• How many shared facilities it has
  
• How well the building has been maintained

Typical NSW strata fees range from $500 to $3,000 per quarter, but high-end complexes with pools, gyms, and concierge services can exceed $5,000 per quarter.

An article about rising strata fees published on realestate.com.au states:

Although there is no official data source for strata levies, anecdotal evidence suggests fees increased 15 to 20 per cent on average over the past year, but up to 40 per cent in some cases.

This sharp increase is likely driven by rising insurance premiums, the cost of materials, and stricter safety and maintenance standards. For buyers, that means it’s more important than ever to review the strata records carefully and budget for potential increases down the track.

If you’re unsure how these rising fees might affect your purchase, our team can walk you through the numbers and help you spot any red flags in the strata report so that you can make a confident, informed decision.

What to Look For Before You Buy

Before signing a contract and buying a strata property, get your hands on the strata report (ideally, have a conveyancer review it with you). Here’s what to check:

• Capital works fund balance – Is there enough saved for future repairs?
• Special levies – Have owners recently been asked to contribute extra?
• Legal disputes – Any ongoing conflicts between owners or with the strata committee?
• Levy history – Are fees increasing rapidly every year?
• Still not sure? We’re happy to review the report and explain what it all means in everyday language.

Strata Fees vs. Freehold Property Costs

Some buyers shy away from strata properties because of the regular fees, but keep in mind, freehold homes come with their own ongoing costs, like:

• External repairs and maintenance
  
• Roof and gutter upkeep
  
• Garden and lawn care
  
• Insurance for the entire building

With strata, many of these costs are shared and handled for you, making it easier to budget and less stressful to manage.

Strata Laws are Changing

Strata living is now one of the most common ways Australians own property, especially in growing areas like the Hunter Valley and Greater Sydney. But as more people move into apartments, townhouses, and villa complexes, the laws that govern these shared spaces need to keep up.

That’s why the NSW Government is rolling out updated strata laws from mid-2025. These reforms aim to reflect better the modern realities of strata living and make things clearer, fairer, and more transparent for everyone involved – owners, residents, developers, and strata managers alike.

The changes are based on recommendations from the 2021 review of NSW’s strata laws and feedback from actual owners and strata communities. Issues like unfair contract terms, poor transparency from strata managers, difficulty getting minor renovations approved, and lack of support for sustainability upgrades were all raised, and the new laws aim to address them head-on.

It’s about giving owners more power, improving trust in the system, and ensuring strata communities feel supported, not stuck in red tape.

Read more about the changes in strata law at NSW Fair Trading. 

Knowledge is Power when Buying Strata Property

Strata fees are a big part of owning an apartment or townhouse in NSW. But when you know what you’re getting into, they don’t have to be scary. The key is doing your homework and getting help from someone who speaks fluent “property” (that’s us!).Need a hand reviewing a strata report or contract? We offer free 15-minute consultations to get you started with confidence. No jargon. No stress. Just straight-up advice from a friendly local team who’s got your back. Call our friendly team on (02) 4965 4594 or email us at admin@oliverandcoconveyancing.com.au.