Strata at a Crossroads: Why the System Needs Urgent Change

The Elephant In The Room Property Podcast | Inside Australian Real Estate

Australia’s strata sector is under pressure — and it's no longer a niche issue.

Following high-profile investigations by Four Corners and 7.30 Report, strata governance failures, building defects, and financial blowouts are now front and centre. With more Australians living in apartments and townhouses than ever before, what happens next in this space will impact millions.

In this episode, Kate McHugh, co-founder of the Strata Futures Stakeholder Engagement and Roundtable, joins us to unpack what’s driving the crisis—and what needs to change. Drawing from her work on the Strata Futures Report, Kate outlines the six key reform pillars that emerged from cross-sector collaboration, covering everything from governance and professional standards to owner advocacy and sustainability.

We explore how opaque commissions, underfunded capital works, power imbalances, and a fragmented regulatory system are eroding trust in strata—and why many apartment owners are left feeling blindsided by defects and skyrocketing levies. Kate also shares what it would take for the sector to turn itself around—before government intervention does it for them.

Whether you're a strata owner, buyer, investor, or professional, this episode offers critical insight into the future of high-density living in Australia.

Episode Highlights

00:00 – Welcome

02:09 – The Strata Sector's Challenges

04:14 – Governance and Regulation Issues

05:08 – The Round Table Initiative

11:54 – Sustainability in Strata

17:13 – The Six Pillars of Reform

26:07 – Understanding Strata Obligations

27:19 – The Importance of Maintenance and Governance Data

28:30 – Investing in the Strata Sector

29:08 – Personal Mission to Improve Property Decisions

30:18 – Challenges in Strata Education and Awareness

31:29 – Public Awareness and Training Initiatives

33:32 – Strata Management and Building Maintenance

37:00 – The Future of Strata Development

40:30 – Sector Collaboration and Task Force

44:14 – Final Thoughts and Call to Action

Mentions

• Strata Futures - https://www.katemchugh.net/strata-futures

About the Guest

Kate McHugh is the co-founder of the Strata Futures Stakeholder Engagement and Roundtable and co-author of the Strata Futures Report. With a background in governance, policy, sustainability, and stakeholder engagement, Kate works at the intersection of lived experience and systemic reform in Australia’s strata sector.

Partnering with former NSW Strata Commissioner John Minns and a wide network of industry and consumer leaders, Kate helped convene a cross-sector discussion to explore what’s broken—and what could be rebuilt. The outcome: a collaborative report outlining six key reform areas designed to make strata more equitable, transparent, and functional. Her work is helping push the conversation forward at a time when strata’s role in housing affordability, sustainability, and urban planning has never been more critical.

Connect with Kate

• Website: https://www.katemchugh.net/
• LinkedIn: https://www.linkedin.com/in/katemchughh/

Resources

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See you on the inside,

Veronica & Chris

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פרקים

1. Strata at a Crossroads: Why the System Needs Urgent Change (00:00:00)

2. The Strata Sector's Challenges (00:02:09)

3. Governance and Regulation Issues (00:04:14)

4. The Round Table Initiative (00:05:08)

5. Sustainability in Strata (00:11:54)

6. The Six Pillars of Reform (00:17:13)

7. Understanding Strata Obligations (00:26:07)

8. Importance of Maintenance and Governance Data (00:27:19)

9. Investing in the Strata Sector (00:28:30)

10. Personal Mission to Improve Property Decisions (00:29:08)

11. Challenges in Strata Education and Awareness (00:30:18)

12. Public Awareness and Training Initiatives (00:31:29)

13. Strata Management and Building Maintenance (00:33:32)

14. The Future of Strata Development (00:36:59)

15. Sector Collaboration and Task Force (00:40:30)

16. Final Thoughts and Call to Action (00:44:14)