Owners Corporations: The Good, Bad & The Ugly
In This Week’s How's The Market | Edition 117
Owners Corporations: The Good, Bad & The Ugly
Architectural Elegance in the Heart of South Yarra
Bounce back in preliminary auction clearance rate
Owners Corporations: The Good, Bad & The Ugly
Thinking about buying into an apartment or townhouse complex?
If the words "owners corporation" (OC) make you shudder, you're not alone. Many buyers avoid OCs like bad wifi - usually out of fear, hearsay, or pure misunderstanding. But not all OCs are created equal.
In this episode of “How’s the Market,” we broke down the good, the bad, and the truly ugly when it comes to Owners Corporations - and what every buyer should know.
The Ugly: Horror Stories from the Field
What keeps buyers up at night: horror stories?
Picture this - a beautiful garden complex in Camberwell, leafy streets, charm galore… and a $26,000 special levy for urgent repairs.
This is what I saw for a property I inspected last year for a client.
Why was there a huge special levy? Because the OC had kept fees low for years and neglected basic maintenance. Termites, rotten gutters, blown-out lights, and crumbling carports - the works.
Low fees may look great on paper, but when it comes time to fix years of neglect, it’s your wallet that cops it. And trust us, when your building’s being eaten alive, it’s too late to talk about proactive maintenance.
2. The Bad: Where Fees Go Bananas
Not all OC costs are created equal. Pools, gyms, lifts, concierge services, full-time landscapers…these might sound swanky, but they come with a hefty price tag.
Worse, during COVID lockdowns, many facilities sat unused due to health restrictions like pools and gyms - while residents still footed the bill. Some never reopened too!
Some large high-rise complexes are overrun with bloated costs, part-time managers who live on-site, concierge staff working 9-5s, and ongoing issues like cladding, water leaks, or expensive repairs.
In these cases, buying in can feel less like investing and more like inheriting a headache.
But it’s not all doom and gloom...
3. The Good: When OCs Work Brilliantly
A well-run OC is like a personal assistant for your property. Think: coordinated gardening, someone to deal with insurance claims, tidy communal areas, disputes resolved without awkward hallway encounters, and a building that’s well-maintained, safe, and welcoming.
Buyers pay for building insurance, maintenance and long-term capital works planning - but when fees are transparent and well-managed, you’re saving yourself stress, time, and potentially thousands down the line.
Some low-rise buildings and boutique complexes (think: 10–20 units, leafy suburbs, and tight-knit committees) are run like clockwork.
These are the ones that sell faster, attract better tenants, and retain value over time.
4. What to Ask Before You Buy into an OC
So, how do you spot a dream OC from a disaster waiting to happen?
Ask these at the open or request them through your conveyancer:
Are there any upcoming levies or maintenance items?
How much is in the maintenance fund?
Can I see previous years AGM minutes?
Has the complex changed managers recently?
Are there any legal disputes, unpaid fees, or unhappy residents?
And if you're buying in Victoria, keep in mind: maintenance planning isn’t legally required unless the complex has 100+ lots - so smaller buildings can fly under the radar.
The current OC certificate and most recent AGM will be in section 32 so start there!
What The Agents Are Saying
Things are heating up across the board!
Whilst the top end of the auction market hasn’t experienced insane clearance rates, agents this week have told me that things are well and truly picking up on the listing front with a lot of the listings that they are currently signing up being scheduled for September auction campaigns.
One office I spoke with this week said they also had 9 properties come online this week which has been a great week for them.
Some agents have reported seeing some huge auction results on properties that are online with very little competition with one auction selling at least $200k above comparable properties in the area. This was located in Kew
The Wow Factor!
32 Bray Street, South Yarra, Vic 3141
The Birdcage penthouse redefines luxury with breathtaking skyline views and bold, visionary design.
A rare blend of private sanctuary and grand entertainer’s dream, this iconic residence captures over a decade of ambition and style.
Standout Features
Over 400sqm full-floor penthouse
4 bedrooms + home office
Rooftop jacuzzi, games room & art studio
7 secure car spaces & 21 storage cages
Open-plan living with fireplace & panoramic windows
Designer Miele kitchen with stone finishes
Private lift with secure entry
Smart home automation (lighting, climate, security)
Multiple alfresco areas with rooftop dining & BBQ
Luxe master suite with mood lighting & hotel-style ensuite
Price guide: $6,500,000 - $7,000,000
In The Media
Capital city auction market impacted by King’s Birthday long weekend
Auction activity took a breather last week thanks to the King’s Birthday long weekend, with just 1,397 homes going under the hammer down a hefty 52% from the week before. That’s on par with this time last year, which saw 1,317 auctions.
The dip in volume also dragged down clearance rates, with the preliminary figure slipping to 63.8% the lowest so far in 2025, after two weeks of 70%+ results.
Sydney felt it most, posting just 59.9% its weakest showing this year outside of January. In contrast, Melbourne held its ground, notching a 71.5% clearance rate for the sixth straight week above 70%.
Brisbane topped the smaller capitals for volume (134 auctions), but clearance dropped to 58.3%. Adelaide saw a slight rebound at 60.3%, while the ACT came in at 54.5%. Perth had a strong showing from limited numbers, with 5 of 6 reported sales successful. Tasmania took the week off.
Final Thoughts
There’s no perfect time to buy, but understanding the cost of waiting and aligning with your long-term goals can make all the difference.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
