Professional Documents
Culture Documents
Multi-Owned
Property in the Asia-
Pacific Region
Rights, Restrictions and
Responsibilities
Editors
Erika Altmann Michelle Gabriel
Tasmanian School of Business School of Social Sciences
and Economics University of Tasmania
University of Tasmania Hobart, Tasmania, Australia
Hobart, Tasmania, Australia
ix
x Contents
Index 317
List of Figures
xiii
List of Tables
xv
xvi List of Tables
E. Altmann (*)
Tasmanian School of Business and Economics, University of Tasmania,
Hobart, Tasmania, Australia
M. Gabriel
School of Sociology, University of Tasmania, Hobart, Tasmania, Australia
across law, management and the lived experience across the Asia-Pacific
region with a view to identifying common themes and building a basis for
future action, whether changes to law, policy or education.
and voting rights, and is comprised of at least two real property lots plus
communally owned real property (Altmann 2015, 215). On registration
of the scheme, each privately held lot is given its own transferable
Certificate of Title. Rights over the communal property (including land)
are outlined on, or attached to, the Certificate of Title for each property.
In Australia, restrictions and responsibilities are sometimes noted,
although these are more often comprehensively outlined in the governing
legislation and associated by-laws. Strata schemes can be as large as a
nested development involving several apartment towers (Townshend
2006). They may involve residential precincts, create vertical suburbs,
involve commercial or industrial property or a combination of these, cre-
ating unique governance issues among landlords, owner-occupiers and
residential or commercial tenants. The way in which these issues are
addressed at the individual, collective and state or country level will
depend not only on history, but also on cultural considerations inherent
to each country and rates of change occurring within those countries.
Australia first introduced the strata title mechanism in 1960 at a state
level to ease pressure on rural land carve-ups and encourage home own-
ership through freehold title mechanisms (Butler-Bowden and Pickett
2007). Home ownership at that time was seen as a social right and a
way for individuals to save for the future, thus ensuring future prosper-
ity. Similar conditions occurred in Hong Kong and Singapore during
the 1990s (Forrest and Lee 2003) and are now occurring in other Asia-
Pacific countries such as China, India, Indonesia and Malaysia with a
waning of the focus on poverty, homelessness and social exclusion
(Forrest and Lee 2003). The increased number of middle class and mega
rich in Asian countries, combined with escalating population rates
make strata title an attractive option for home purchase in countries
where land is at a premium. The same cannot be said for Australia’s
housing market. There is an increasing propensity for the apartment
sector, particularly within the central business districts of major cities
and towns, to become investor-driven markets. The ABS (2016) put the
owner-investor figure at just under 70 per cent of all apartments. This
raises issues for voting and p ayment of monies to the bodies corporate
within the apartment sector, both of which impact on the long-term
viability of the schemes.
Rights, Restrictions and Responsibilities in Context 7
b urdens being placed on those who act with responsibility. Arising out of
free-rider situations, dispute mechanisms are discussed in Kathy Douglas
and Robin Goodman’s Chap. 12. In the state of Victoria, Australia, a
three-tier dispute resolution system is enacted. Chapter 12 provides an
analysis of the qualitative data gathered between two states, Victoria and
New South Wales, highlighting that committee members are largely
unaware of their responsibilities in relation to dispute resolution and feel
ill-equipped to effectively deal with conflict. Committee members are
shown to need guidance over their rights and responsibilities and assis-
tance with conflict engagement.
The importance of these responsibilities is highlighted in the next four
chapters which have a core focus of improving satisfaction with the living
environment. Lisa Wei Gao’s Chap. 14 traces housing reform in China to
provide an understanding of the determinants of participative behaviour.
While it is generally understood that owners have the right to participate
in the management of their building complex, few take on that responsi-
bility, with figures ranging from around five per cent to 20 per cent of
owners across the Asia-Pacific region. Gao’s research concludes that
Chinese owners of MOP are not sufficiently empowered to deal with
management issues. In Chap. 13, Yung Yau’s focus is on Olsen’s (1965)
logic of collective action which suggests that collective actions are not
automatic. Yau attempts to understand which issues trigger individual
owners to participate in management decisions. He notes that apart from
the perceived value of good housing management outcomes, individual
homeowners’ perceptions of self-, group- and proxy-efficacies are all sig-
nificant determinants of participation behaviour. This theme of manage-
ment issues is expanded on by Muhamad Ariff in Chap. 15 with a
discussion of mismanagement of MOPs. The focus is on Selangor where
a multi-stage random sampling process found that satisfaction with the
building and one’s neighbours improves housing management. We round
out this section with Jeeva Sajan’s research which focuses on the impor-
tance of building relationships while moving to an increasingly on-line
contractual environment. Sajan highlights the Mumbai experience,
although it is important to remember that many multi-national compa-
nies provide management services to MOP committees of management
Rights, Restrictions and Responsibilities in Context 13
Notes
1. Strata-scheme termination occurs when the owners of a complex deter-
mine to extinguish the scheme, usually as a precursor to the building (and
all apartments within it) being demolished. Until recently, these en bloc
sales could only occur when 100 per cent of owners were in agreement
with this course of action, however in an increasing number of jurisdic-
tions this is no longer the case.
14 E. Altmann and M. Gabriel
References
ABS. 2016. Housing Occupancy and Costs, 2013–14. In 4130.0, ed. Australian
Bureau of Statistics. Canberra: Australian Government.
Altmann, E. 2015. Policy Implications for Governing Australia’s Apartment
Communities: Tenants, Committees of Management and Strata Managers.
In Housing in 21st-Century Australia, ed. R. Dufty-Jones and D. Roger,
121–138. Farnham: Ashgate.
Bagaeen, S., and O. Uduku. 2011. Gated Communities: Social Sustainability in
Contemporary and Historical Gated Developments. 1 vols., vol. 1. London:
Earthscan.
Bennett, R., J. Wallace, and I.P. Williamson. 2005. Achieving Sustainability
Objectives Through Better Management of Property Rights, Restrictions and
Responsibilities. Paper Read at Building Sustainability Accounting in Land
Administration System in Australia, November 9–11, at Melbourne.
Blandy, S., A. Dupuis, and J. Dixon. 2010. Multi-owned Housing: Law, Power
and Practice. 1 vols, vol. 1. Farnham: Ashgate.
Butler-Bowden, C., and C. Pickett. 2007. Homes in the Sky: Apartment Living in
Australia. Carlton: The Miegunyah Press.
Easthope, H., and B. Randolph. 2008. Governing the Compact City: Challenges
of Apartment Living in Sydney. Housing Studies 24: 243–259.
Everton-Moore, K., A. Ardill, C. Guilding, and J. Warnken. 2006. The Law of
Strata Title in Australia: A Jurisdictional Stocktake. Australian Property Law
Journal 13: 1–35.
Forrest, R., and J. Lee. 2003. Housing and Social Change: East-West Perspectives.
1 vols. London: Routledge.
Johnston, N.R., and S. Reid. 2013. Multi-Owned Developments: A Life Cycle
Review of a Developing Research Area. Property Management 31: 366–388.
McKenzie, E. 1996. Privatopia: Home Owner Associations and the Rise of
Residential Private Governments. Vol. 1. New Haven: Yale University Press.
Olsen, M. 1965. The Logic of Collective Action: Public Goods and the Theory of
Groups. Cambridge, MA: Harvard University Press.
Rose, G. 1995. Place and Identity: A Sense of Place. In A Place in the World, ed.
D. Massey and P. Jess. Oxford: Oxford University Press.
Townshend, I.J. 2006. From Public Neighbourhoods to Multi-Tier Private
Neighbourhoods: The Evolving Ecology of Neighbourhood Privatisation in
Calgary. GeoJournal 66: 103–120.
Rights, Restrictions and Responsibilities in Context 15
Introduction
The majority of urban centres around the globe are experiencing persis-
tently high rates of growth. In response to this, metropolitan land use
policies are now encouraging more compact city development, which in
turn is stimulating urban regeneration activity designed to accommodate
greater density of housing and population in established suburbs
(Housing New York 2013; London Plan revisions 2015; Plan Melbourne
2014). Such urban redevelopments are typically of higher yield than
existing properties, and it is not uncommon to see air space above smaller
sites being filled with extra storeys of mid-rise medium density or high-
rise apartments. Innovation in building design and technology is also
facilitating thinner and higher infill redevelopment (Higgins 2015).
R. Leshinsky (*)
RMIT University, Melbourne, VIC, Australia
P. Newton • S. Glackin
Swinburne University of Technology, Melbourne, VIC, Australia
40000
35000
30000
Number of Dwellings
25000
20000
15000
10000
5000
0
35 34
40 39
45 44
50 49
55 54
60 59
65 64
70 79
75 74
80 79
85 84
90 89
95 94
00 99
05 04
20 9
+
00
10
19 –19
19 –19
19 19
19 –19
19 –19
19 –19
19 19
19 –19
19 –19
19 –19
19 19
19 –19
19 –19
20 –19
20 –20
–2
–
–
30
19
Year of Build
M’ton Peninsula 98,368 97,073 66,906 638 2320 2136 0.6 2.4 3.2
Nillumbik 24,037 22,421 41,005 71 316 237 0.3 1.4 0.6
(continued)
23
Table 2.1 (continued)
24
Yarra 28,134 44,526 1426 1212 16,428 110 4.3 36.9 7.7
Yarra Ranges 65,558 62,073 240,232 385 966 2103 0.6 1.6 0.9
Total 1,685,843 1,848,360 28,844 261,192 1.7 14.1
Source: Derived from the Victorian State Department of Environment, Land, Water and Planning, Housing Development
Data (2004–2012) and the Victorian State Valuer-General municipal rates dataset 2015
The Unintended Consequences of Strata Title for Urban… 25
perhaps the greatest risk factor for the property sector. Less so for brown-
field sites, where ownership is typically concentrated in fewer hands, and
associated built assets are typically unoccupied. The greyfields by com-
parison, are a more complex arena from the perspective of regeneration
(Newton 2010; Newton and Glackin 2014). Their attractiveness lies in
the fact that they are located in the inner and middle suburbs in Australian
cities with significantly greater access to jobs, public transport, education
and healthcare than the more recently developed low-density car depen-
dent outer suburbs. They also have housing with the greatest redevelop-
ment potential, but almost universally occupied—with multiple property
owners. The existence of strata title ownership in these areas adds a fur-
ther level of complexity in their redevelopment.
Research to date has identified several key barriers for the effective
redevelopment of established inner and middle suburbs of Australian
cities. A number have to do with urban planning and the manner in
which land uses are allocated to particular areas, and the zoning regula-
tions that are assigned to direct the type of development municipal gov-
ernments are attempting to attract (or discourage). Others have to do
with building codes and legislation that dictates what type and scale of
property development is permissible on a particular site. Residential zon-
ing continues to influence what type and scale of housing can be built,
and where, in Australian cities. In turn, this dictates how land can be
subdivided horizontally. The most pervasive residential zone in Victoria
(Neighbourhood Residential) precludes medium density development;
favouring detached housing or subdivision of traditional ‘quarter acre’
lots into a maximum of two parcels and associated dwellings. More
intensified forms of residential development require vertical subdivision
of a site that is supported by zoning and strata title legislation that per-
mits a land parcel to become the site for a multistorey complex—extend-
ing to high-rise apartments (Sharam et al. 2015). High-rise apartment
development is excluded from both Neighbourhood and General
Residential Zones in Melbourne.
Current zoning notwithstanding, significant opportunities exist for
current property owners in greyfield areas to play an important role in the
scale and speed with which the built environment in their neighbourhood
can be regenerated—especially if they can engender a collective interest
The Unintended Consequences of Strata Title for Urban… 27
Fig. 2.3 Structural (new balconies and water tanks) and design retrofit of strata
title (6-pack walk-up) building in Fitzroy, Melbourne (Source: Professor Nigel
Bertram (Monash University)
30 R. Leshinsky et al.
Fig. 2.4 City of Stonington: distribution of strata title residential buildings, 2014
(Source: Derived from the Victorian State Department of Environment, Land,
Water and Planning, Housing Development Data (2004–2012) and the Victorian
State Valuer-General rates dataset 2015)
Fig. 2.5 An example of strata (white) and subdivision blocking the redevelop-
ment of high RPI dwellings (dark grey) in Stonnington
32 R. Leshinsky et al.
Conclusion
In conclusion, strata title had, as one of its original intentions, to create
more varied options for compact living in established suburbs with their
attendant amenity. Strata title, as it is currently structured with individ-
The Unintended Consequences of Strata Title for Urban… 33
Notes
1. See further, http://markthegraph.blogspot.com.au/2012/03/dating-
australian-recessions.html.
References
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Australian Bureau of Statistics. 2011. Australian Bureau of Statics Census of
Population and Housing. http://www.abs.gov.au/websitedbs/censushome.nsf/
home/tablebuilder. Accessed 27 Sep 2015.
34 R. Leshinsky et al.
———. 2015a. Building Approvals, Australia, Jul, cat. no. 8731.0, Canberra.
———. 2015b. Household and Family Projections, Australia, 2011 to 2036, cat.
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ning/plans-and-policies/housing-and-residential-development/housing-
development-data. Accessed 21 Apr 2016.
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Wiley.
Easthope, H., J. Warnken, C. Sherry, E. Coiacetto, D. Dredge, C. Guilding,
N. Johnston, D. Lamminmaki, and S. Reid. 2014. How Property Title
Impacts Urban Consolidation: A Life Cycle Examination of Multi-title
Developments. Urban Policy and Research 32 (3): 289–304.
Easthope, H., S. Hudson, and B. Randolph. 2013. Urban Renewal and Strata
Scheme Termination: Balancing Communal Management and Individual
Property Rights. Environment and Planning A 45 (6): 1421–1435.
Harris, D. 2011. Condominium and the City: The Rise of Property in Vancouver.
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and the Nature of Property. In Rethinking Expropriation Law II: Context,
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H. Mostert, J.A. Sluysman, and L.C.A. Verstappen, 263–297. The Hague:
Eleven Law International Publishing.
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Language: Finnish
Kirj.
Suomentanut
P. K. [Paavo Kesäniemi]
Ensimmäinen luku.
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Toinen luku.
Mustatukkaisen miehen ääni oli lempeä. Mutta Josephinestä
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