The timeline below summarises relevant legislative and industry changes affecting strata stakeholders in the Northern Territory. It includes helpful links and further reading to help you understand NT legislative changes.
May 2024
CoreLogic’s National Home Value Index reveals a significant acceleration in the quarterly growth rate of housing values – a jump from 1.4% in the final quarter of 2023 to 1.6% in the first quarter of 2024.
Despite high interest rates and soaring living costs, Australia’s housing market displays extraordinary tenacity, with CoreLogic’s national Home Value Index recording its 14th consecutive month of growth. In particular, national property values saw a 0.6% uptick in March, matching the rise seen in February and stirring up optimism in the market.
Even though housing values increase faster, the quarterly growth trend is now half what it was mid-last year when values were shooting up by 3.3% each quarter.
Although most capital cities saw an increase, Darwin’s home values fell by 0.2%. The monthly changes in property value are assumed to be attributed to factors such as:
Housing values are expected to trend upwards, potentially even more so should interest rates decrease. But there are some challenges to consider. With the cost of homes, rents and mortgages increasing faster than people’s incomes, it’s getting harder to afford a home.
As these expenses outpace household income growth, more potential buyers could see themselves priced out of the median-value home market. This trend could drive demand towards more affordable options, including detached housing markets and multi-unit properties.
Read more about the property trends of Q1 2024 in CoreLogic’s Home Value Index report below.
May 2024
Darwin’s rental market saw a surge in demand in March 2024, making it one of only two Australian capitals to record a drop in their vacancy rate. The PropTrack Market Insight Report providesd valuable data to help uncoverinsight into the dynamics at play in the rental market.
With the surge in rental demand, body corporates should gear up to prepare for any potential challenges that come with with higher occupancy. These could range from enforcing by-laws and handling noise complaints to managing the usage of shared facilities. To tackle these issues effectively, maintaining clear communication of rules and fostering mutual respect among residents is critical.
Learn more about the recent changes shaping the rental market trends in Darwin and regional NT in 2024.
February 2024
Unit entitlements represent the proportion of ownership within a body corporate property, such as common spaces like barbecue areas, swimming pools or shared facilities.
Changing unit entitlements is a fundamental decision that can alter an owner’s legal rights and responsibilities, such as voting powers, common property duties, and financial payments. To modify or reallocate the shared ownership of the property, body corporates and owners should follow specific processes outlined by Northern Territory legislation.
Unit or lot entitlements are calculated based on the lot’s market value. Generally, the larger the lot, the more unit entitlement it has, meaning an owner can carry higher levies and ownership of common areas.
A range of factors, such as the age, condition, common property facilities, design, onsite contractor services, insurance costs, financial status, the size of your lot, or any major changes to the property, can influence the allocation of shared body corporate ownership.
Historically, unit entitlements were calculated during the initial construction of the property or when significant changes were made. Developers were previously responsible for these assessments, which often led to inaccuracies. An independent property valuer is now mandated to handle these valuations, which has improved the accuracy and credibility of unit entitlement valuation reports.
It is important to get an accurate unit entitlement valuation. An undervalued lot may lead to lower voting rights on fundamental property decisions. On the other hand, an overvalued unit entitlement might have higher levies and fees than necessary.
Adjusting unit entitlements is a crucial decision that may impact an owner’s contributions, rights, and responsibilities within a corporate body.
Under the Unit Title Schemes Act 2009, unit entitlements can be adjusted through a unit owner’s application to the Tribunal, by mutual agreement between unit owners, or due to land acquisition, with each scenario involving specific conditions and procedural requirements.
Furthermore, the Units Titles Act 1975 provides additional requirements around reassessing unit entitlements and formatting a proposal for a new subdivision plan. Notably, the body corporate may submit a reassessed schedule for unit entitlements prepared by a valuer to the Surveyor-General for approval from the third or sixth year after the property development is finished. Also, every owner should get a copy of this proposed change. If the senior surveyor agrees, the new division plan has to be officially registered.
Click the link below to learn more about the legislation around adjusting unit entitlements within your body corporate.
