Living in Strata Sustainability

As Australia transitions toward a lower-carbon future, sustainability in strata schemes is no longer a fringe topic. It is now a central pillar of responsible building management, financial viability, and community wellbeing – all essential to happier strata communities.

In New South Wales, where more than one in three people now live in apartments, strata communities have a critical role to play in fostering sustainable living habits. Whether you live in a boutique block of six or a high-rise of 200, sustainability initiatives can reduce long-term costs, boost property value, and improve liveability.

This article explores the current landscape of strata sustainability in NSW, key regulations, grants available to owners corporations as of 2026, and practical steps your building can take with the support of a forward-thinking strata management firm.

Why Sustainability Matters in Strata Communities

Strata buildings are inherently different from detached homes. With shared infrastructure, communal decision-making, and complex maintenance requirements, implementing sustainability is not always straightforward, but the potential impact is undeniable. 

The benefits of sustainable strata living include:

• Lower energy and water bills
• Improved indoor air quality and thermal comfort
• Higher resale value and rental demand
• Reduced carbon footprint
• Better resilience to climate-related costs such as energy price spikes

Research from Roberts et al. (2019) shows that apartment households consume nearly 50 percent less electricity per day compared to detached homes, around 8.8kWh/day versus 17.7kWh/day,  highlighting the inherent sustainability benefits of higher-density living.

The NSW Strata Landscape Is Changing

Strata living in New South Wales is undergoing an urban transformation. The traditional quarter-acre block dream is evolving into a more compact, connected lifestyle. By 2026, more than 50 percent of Sydney’s new housing stock will be apartments, many of them in mixed-use, transit-oriented developments.

But with this shift comes challenges:

• Older buildings (1960s –1990s) often lack insulation, use inefficient systems, and may require extensive retrofitting.
• Newer buildings, while often more efficient by design, have been plagued by defects, undermining financial sustainability and trust.
• Decision-making in strata can be complex, especially when owners must agree to fund sustainability upgrades.

Despite these obstacles, a wave of grants, standards, and support programs are now making it easier, and more urgent, to make sustainability a core part of strata management.

Regulation and Legislation Driving Strata Sustainability

Strata Schemes Management Act 2015

While not directly focused on sustainability, the Act governs how upgrades can be approved by owners corporations, including:

• Special resolutions for capital works
• Use of administrative or capital works funds for infrastructure like solar PV and energy-efficient systems

National Construction Code (NCC) 2022

From October 2023, all new Class 2 buildings (apartments) must meet minimum 7-star NatHERS energy ratings. The NCC also introduces a Whole-of-Home energy budget, factoring in appliance efficiency, hot water systems, and on-site solar generation.

• Environmental Planning Instruments (NSW)

Local councils often require new developments to meet Green Star or BASIX sustainability targets. Retrofitting existing buildings is encouraged through DA pathways that prioritise environmental performance and emissions reduction.

Grants and Incentives for NSW Strata

NSW Sustainable Apartments Program (SAP)

Launched in 2023, this flagship program supports apartment buildings to reduce emissions and improve energy performance.

What it offers:

• Free energy assessments of common property
• Co-funding for upgrades such as LED lighting, solar PV, HVAC, and insulation
• Expert support for planning and delivering energy-efficient improvements

Eligibility: Strata schemes in NSW with common property energy use.

Learn more at Energy NSW

City of Sydney – Environmental Performance Grants

If your building is within the City of Sydney local government area, you may be eligible for:

• Up to 50 percent co-funding for energy and water efficiency assessments and implementation
• Support for common area lighting upgrades, hot water heat pumps, solar panels, and more

View program details here. 

Solar for Apartments 

A $100 million Solar Banks initiative is in development to allow apartments and renters to benefit from shared solar systems. The program will support community solar projects, particularly those targeting low-income households.

Visit the NSW Government website for more information. 

What Does a Sustainable Strata Look Like?

High-performing, sustainable apartment buildings typically feature a range of environmental upgrades. Before performing any upgrades, read your building’s by-laws and check with your strata manager.

Ready to Make Strata Simple?

Contact our team today to see how Strata Plus can help you manage your building smarter and more sustainably.