We area nation that speaks 8 separate strata dialects, yet the basic strata concepts are the same across the nation. So are the issues that trouble us. As we seek to understand what unites us and what divides us, this week our focus is the Northern Territory.
The Northern Territory has a small but distinctive strata presence with 25,427 lots across 2,960 schemes. Here are some other highlights of the latest research about the Northern Territory strata market:
· 16% of the population live in strata (compared to 15% nationally)
· 59% of Northern Territory strata schemes contain 5 lots or fewer
· 49% of residents are aged between 20-39
What makes the Northern Territory's strata sector distinctive?
1. Balanced scheme size distribution with moderate concentration of larger developments: The Northern Territory shows a more balanced distribution of scheme sizes compared to other jurisdictions, with 59% of schemes containing five lots or fewer, being significantly lower than Tasmania (88%) or South Australia (74%). Large schemes (50+ lots) represent only 3% of total schemes but contain 23% of all lots, suggesting the presence of substantial developments that provide economies of scale for professional management.
2. Licensing and education requirements: The Northern Territory mandates licensing for all paid body corporate managers, in addition to professional indemnity and trust account obligations. The territory also requires that managers have completed the Diploma of Property (Agency Management), which covers compliance, financial management, and business operations across twelve units of competency. This approach ensures that body corporate managers possess both formal qualifications and practical competencies before entering the profession, setting a high standard for service delivery.
3. Diverse resident demographics reflecting transient population: The Northern Territory has a unique demographic profile with 48% of apartment residents born in Australia, reflecting the territory's role as a gateway for migration and temporary workers. With significant populations from Nepal, India, and other countries, the Northern Territory's strata communities are highly multicultural, requiring body corporates to navigate diverse cultural expectations around property management.
The Northern Territory's strata sector reflects its unique position as Australia's most remote jurisdiction, with a transient population and ongoing development activity creating distinctive challenges and opportunities for strata management and community governance.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
