Perth Strata Owners Face Record Water Repair Costs, Experts Warn
In WA, the 2025 Australian Apartment Advocacy survey found 68% of apartments reported defects (up from 59% in 2021), with wet-area waterproofing and external weatherproofing featuring prominently in state audits [6][7]. Nationally, independent academic research shows defects are widespread in multi-owned residential buildings: 85% of audited buildings had at least one defect, 97% in NSW, 74% in VIC, and 71% in QLD [1][2].
Waterproofing issues have become particularly problematic, often sitting among the most frequently reported defect types in apartment buildings. For strata owners, that means higher risk of leaks, internal damage and disruption, making it essential to understand what drives these costs and what options exist for managing them effectively. The available evidence underscores the scale of the problem across states [1][2].
The good news is that informed property owners who understand their options can navigate these challenges with confidence and protect their valuable investments.
What is Causing the Surge in Waterproofing Failures?
Buildings constructed in recent decades face a troubling reality: defects are widespread. A large academic audit across NSW, Victoria and Queensland found 85% of residential multi-owned buildings had at least one defect (with 97% in NSW, 74% in Victoria, 71% in Queensland) [1][2]. Several factors work together to create these widespread problems.
Workmanship quality stands as the most significant issue. Installers often rush through projects, failing to allow proper curing times for membranes or to follow manufacturer specifications, leading to premature failure and leaks. As one industry body noted, “many issues stem from compressed programs, insufficient supervision, and cost pressures that trade off quality.”
Budget pressures create additional risks. When builders must complete projects at rock-bottom prices, quality suffers. Under-qualified trades or under-resourced jobs lead to poor membrane adhesion, inadequate falls to drains and gutters, and missed detailing, especially around penetrations and transitions, which allows moisture ingress, blistering, structural cracks, and persistent water penetration issues.
Mother Nature plays her part too. Temperature changes cause buildings to expand and contract, opening gaps at joints and interfaces. Wind-driven rain and blocked drains create standing water where it should flow away.
Material selection errors compound these problems. Specifying incompatible products, such as membranes and adhesives that do not work well together, can lead to rapid breakdown and moisture ingress within months. What should last decades fails in the first few years.
How Do These Defects Impact Costs for Perth Strata Owners?
Property owners who act quickly on waterproofing issues can limit secondary damage and disruption; however, many schemes will still face substantial expenses when problems arise.
The numbers paint a stark picture. Independent studies consistently find defects are common in apartment buildings, and waterproofing problems are frequently among the top categories identified [1][2].
Balcony waterproofing presents its own challenge. As exposed elements, balconies and terraces are common points for water ingress in multi-owned buildings, reinforcing the need for proactive inspections and timely remediation plans [1][2].
The broader impact extends beyond individual schemes. Research and regulator summaries confirm this is a systemic, national issue rather than a problem confined to any one state [1][2].
Insurance costs compound these expenses. With around 85% of audited multi-owned residential buildings carrying at least one defect (and 97% in NSW), insurers continue to price for elevated exposure, pushing premiums higher for many schemes [1][2].
What Solutions Are Proposed in NCC 2025 Reforms?
The Australian Building Codes Board has responded to the waterproofing crisis with significant changes coming in the National Construction Code (NCC) 2025 [3].
Several key technical improvements will help prevent future waterproofing failures. The new code proposes clearer Deemed-to-Satisfy provisions to reduce water ingress pathways and improve durability and quality control [3][4][5].
The reforms also streamline existing waterproofing provisions by combining Parts F1 and F3 into one section and updating performance requirements and enforcement mechanisms to ensure better quality control [3][5].
While these reforms offer hope for future construction, existing buildings still need funding pathways now: special contributions for unbudgeted defects, staged scopes, and, where required, finance aligned to milestones.
Lock in the funding pathway early when addressing waterproofing repairs. Early intervention limits secondary damage and keeps scope from ballooning into major, costly works.
How StrataLoans supports managers: We start by understanding your scheme’s financing needs and timelines, then prepare tailored proposals you can use with the Council of Owners and owners. We can assist in briefing owners on options and are happy to attend meetings to answer questions and keep decisions moving. Contact StrataLoans to discuss your scheme or to arrange attendance at your next Council of Owners or owners meeting.
Sources
1. Deakin University & Griffith University (2019). An Examination of Building Defects in Residential Multi-owned Properties. https://dro.deakin.edu.au/articles/report/An_examination_of_building_defects_in_residential_multi-owned_properties/20751541/1
2. Architects Registration Board of Victoria (ARBV). Building defects, professional standards and compliance culture (summary referencing Deakin/Griffith). https://www.arbv.vic.gov.au/systemic-risks-australian-architecture-sector/building-defects-professional-standards-and
3. Australian Building Codes Board (ABCB). PCD 2025 – Improving waterproofing and water shedding provisions. https://www.abcb.gov.au/pcd/pcd-2025-improving-waterproofing-and-water-shedding-provisions
4. ABCB / ACIL Allen. Consultation Regulatory Impact Statement – Waterproofing and water shedding. https://www.abcb.gov.au/resource/report/consultation-regulatory-impact-statement-ris-acil-allen
5. ABCB. PCD 2025 – Improving waterproofing and water shedding provisions (PDF resources). https://www.abcb.gov.au/resource/report/pcd-2025-improving-waterproofing-and-water-shedding-provisions
6. Australian Apartment Advocacy (2025). Apartment Survey – WA results snapshot. https://www.aaadvocacy.net.au/post/wa-leads-the-nation-with-apartment-defects
7. WA Building and Energy. Technical audit insights noting wet-area waterproofing and external weatherproofing as key improvement areas. https://www.wa.gov.au/government/announcements/update-technical-audits-of-ongoing-building-construction