Can Developers Force Unit Owners to Sell? NSW Says Yes – Will Victoria Follow?
/One Owner Said No – the Court Said “Too Bad”
NSW Owners Forced to Sell: Is Victoria Next?
When a wealthy developer buys 23 of 24 units in a Sydney block and one elderly woman refuses to sell, you’d expect a stalemate.
Not in New South Wales.
In a recent case involving a company backed by James Packer, the NSW Land & Environment Court ruled in favour of the majority and ordered the last remaining owner to sell – even though she didn’t want to go. Why? Because under NSW law, if 75% of strata owners vote in favour of a collective sale, they can ask the Court to force it through.
This decision is turning heads in Victoria, where every single owner must still agree before a sale like that can happen.
The case raises an uncomfortable but pressing question:
If the Victorian Government wants more housing and urban renewal, will it go down the same path?
How the NSW Law Works
The power to force a collective sale in NSW comes from Part 10 of the Strata Schemes Development Act 2015 (NSW).
Here’s how it works:
If 75% of unit owners (by lot entitlement) vote to sell the building, they can propose a “strata renewal plan”.
That plan is lodged with the Registrar General and reviewed.
If approved, they can apply to the Land & Environment Court to force the sale.
The Court considers fairness, compensation, and proper process – but if all is in order, the holdouts are compelled to sell.
It's a system designed to stop a single owner from derailing urban renewal. But critics say it puts vulnerable people at risk.
Could That Happen in Victoria?
No – not under current law. In Victoria, terminating a strata or owners corporation still requires unanimous consent. There is no 75% trigger.
The only possible workaround is under section 34D of the Owners Corporations Act 2006 (Vic), which allows VCAT to dispense with a signature, but only in very narrow circumstances – and not for something as radical as forcing a sale of someone’s home.
So, in Victoria, if 23 of 24 owners want to sell and one says no, the answer is no. Full stop.
Other States – A Mixed Bag
Across Australia, it’s a patchwork. Here’s a breakdown:
Queensland: New rules (as of 1 May 2024) allow a scheme to be terminated with 75% approval, but only if the building is uneconomic to repair. An adjudicator must approve the plan.
Western Australia: Since 2020, 80% of owners can apply to terminate a strata, subject to fairness and approval by the State Administrative Tribunal.
ACT, SA, TAS, NT: All still require 100% unanimous agreement to terminate a strata or unit scheme.
Victoria: Still firmly in the 100% camp – at least for now.
State Super-Majority Allowed? Threshold Approval Needed
NSW ✅ Yes 75% Land & Env Court
QLD ✅ Yes (from 2024) 75% Adjudication
WA ✅ Yes 80% SAT
VIC ❌ No 100% –
ACT ❌ No 100% –
SA ❌ No 100% –
TAS ❌ No 100% –
NT ❌ No 100% Tribunal
What Might Happen Next
This issue won’t go away. As Victoria faces pressure to increase housing density, repurpose ageing unit blocks, and deliver new apartments closer to transport, the government may start looking very closely at what NSW and Queensland have done.
Developers will push for change. Councils will face pressure to support more “urban renewal.” And long-time owners may find themselves caught between nostalgia and policy.
Whether that leads to reform or revolt, only time will tell.
But don’t be surprised if Victoria eventually imports the NSW model – or something close to it.
Until then, the law remains clear:
One owner can still say no – and that’s the end of it.
Need Advice on Buying into a Strata Scheme?
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