Summary

Most apartment buyers focus on the property itself. Experienced buyers focus on the building.

A clean renovation or attractive price means very little if the strata report reveals defects, financial stress or ongoing disputes. These are the issues that can quickly turn a seemingly cheap apartment into an expensive problem.

The difference between a strong apartment purchase and a poor one is often hidden in the paperwork.

What Buyers Commonly Miss

Many buyers only skim strata reports or rely on others to interpret them.

The warning signs are usually there:

• Repeated water ingress or defect discussions

• Weak sinking fund balances

• Ongoing disputes between owners

• Upcoming major works with no funding allocated

None of these issues appear in the marketing campaign, but all of them impact value.

Why Cheap Apartments Can Become Expensive

There is usually a reason a property looks cheap relative to the surrounding market.

Sometimes it is poor layout or position. Other times, it is the building itself.

We regularly see buyers underestimate:

• Future special levies

• Defect rectification costs

• Lift replacements or waterproofing works

• Legal disputes impacting finance approval or resale appeal

What initially looks like a saving can quickly disappear through ongoing costs and weaker long term demand.

What We Look For

A strong strata report is not just about avoiding problems. It is about identifying stable buildings with long term owner occupier appeal.

We focus on:

• Consistent maintenance history

• Healthy sinking fund position

• Limited defect history

• Stable ownership and low conflict within the building

These are usually the buildings that hold value more effectively over time.

Why This Matters More in Sydney

Sydney buyers are increasingly competing for apartments due to affordability pressures.

That means more people are buying into strata without fully understanding what they are purchasing. In many cases, the building quality matters more than the apartment itself.

Good apartments in poor buildings rarely perform well long term.

By Dan Grantham

Summary

New apartments often look better on inspection. Older apartments often perform better over time.

In Sydney, many experienced buyers continue to favour established apartment blocks over newer developments. The reasons are practical, not emotional.

Layout, density, construction quality and owner occupier demand all matter more than polished finishes.

The Layout Difference

One of the biggest differences is usability.

Older apartments were typically designed with larger living areas, better proportions and more natural light. Many newer developments maximise apartment numbers instead, leading to compromised layouts and smaller internal spaces.

Buyers notice this over time, particularly owner occupiers.

Why Density Matters

Higher density developments can create long term issues:

• Greater wear on common areas
• Higher ongoing maintenance costs
• Increased investor ownership
• More transient tenant populations

Lower density buildings tend to feel more stable and community driven, which supports owner occupier demand and resale appeal.

Construction Quality and Strata Stability

Not every new building has problems, but defect concerns have changed buyer behaviour significantly in recent years.

Many buyers are now prioritising:

• Proven building performance
• Stable strata history
• Simpler construction types
• Lower ongoing maintenance risk

Established brick buildings from the 1970s and 1980s continue to attract demand because buyers understand what they are getting.

What Performs Best Long Term

Apartments that consistently perform well usually share similar characteristics:

• Functional layouts
• Strong natural light
• Limited supply within the building
• High owner occupier appeal

These are the assets that tend to remain competitive across changing market conditions.

By Dan Grantham

The worst feeling is inspecting a property falling in love with it going through the process of buying a building & pest report, attending multiple inspections, having the contract reviewed and organising your deposit only to see that it sells well above your budget.

Ensuring a property is fairly priced is crucial to avoid overpaying. By taking these three steps, you’ll be better equipped to make informed decisions and secure your ideal property without exceeding your budget.

1. Ask for Comparable Sales from the Agent

Start by asking the agent for comparable sales, ideally within the last two months. A good agent should provide at least three properties with similar size and specifications. Real estate markets shift quickly, so be cautious of comparables from early in the year—they may not accurately reflect current market conditions. By confirming that the comparables are recent, you’ll have a better gauge of the property’s fair value.

2. Conduct Independent Research on Recent Sales

Thanks to online tools and databases, buyers have access to more information than ever before. Don’t rely solely on the agent’s comparables. Agents sometimes make errors or may select sales that favor the price they’re aiming for. Always cross-check the information. For instance, I once encountered an agent who listed a comparable property as sold for $2,750,000 when it had actually sold for $2,600,000. This demonstrates the importance of verifying data to ensure accuracy.

3. Get a Second Opinion from a Different Local Agent

Reaching out to a different agent in the area can give you additional perspective. Many agents have either appraised the property or are familiar with its worth. An impartial second opinion from another local agent can also provide insight into the first agent’s selling approach—whether they typically prefer auctions, handle high volumes, or have a reputation for fair pricing. This extra insight can help you set realistic expectations and guide your strategy.

By conducting thorough due diligence on the price, you’ll develop an independent opinion of the property’s value. With this information, you can decide if it’s the right home for you and create a strategic plan that aligns with your budget. Whether you’re searching for a home, investment property, or development opportunity, these steps will help you confidently navigate the market.

If you’re considering a property purchase and need professional guidance, we’re here to help you or someone you know secure the perfect property under favourable conditions.