World's Most Expensive Strata Building

It seems that the world now has a new leader for the most expensive strata building.  This time it's in London and called One Hyde Park.


The building has recently been completed in Knightsbridge and is regarded as the pinnacle of luxury apartment living.  Sales prices started at $15 million up to £140m for a 3,000sq m triplex penthouse.

Some of the owners include Ukraine's richest man Rinat Akhmetov (who was the first high profile buyer), developer Christian Candy, the UAE's Mohammed Saud Sultan Al Qasimi; British insurance broker Rory Carville; and Irish property magnate, Raymond Grehan.


You can read more about One Hyde Park in this Observer article by Rowan Moore.

But, it's already receiving interesting news attention.  Like this article about the tax haven status of many of the owners in The Observer by Daniel Boffey and the lack of residents reported in The Mail's Matt Sandy.


Regardless of all that, I wonder what the strata managers are asked to do and what the general meeting will be like?  And, perhaps they'll need some expert help with a dispute or two?




Francesco ...

Australian Government Checks Strata Insurance

The natural disasters that have seriously affected strata buildings in northern Australia over the last 2 years have left many difficult and unanswered questions for strata stakeholders, insurers and government.  


Questions like -

• Why weren't the buildings covered for the cyclone and flood damage?
• Should strata laws be changed to make this kind of insurance compulsory?
• What should insurers do in response?
• Can (and should) government intervene?
• How can strata owners respond?

Now the House of Representatives Standing Committee on Social Policy and Legal Affairs has decided to consider issues around residential strata insurance as part of its inquiry into the operation of the insurance industry.  The extension was announced by Assistant Treasurer Bill Shorten and Committee Chair, Mr Graham Perrett MP, as an extension to the Terms of Reference and will allow the Inquiry to examine factors influencing the affordability of residential strata insurance.

Mr Perret said “At the invitation of Strata Community Australia, Mr Entsch and I attended a meeting in Cairns last week and heard from more than 150 strata title unit owners, managers and real estate agents about rising costs of strata insurance."


You can read more about it at Graham Perrett MP's press release.


So, it seems that strata owners insurance risks will now get proper consideration as part of the national review of disaster insurance.


Well done Strata Community Australia for getting attention to this issue.




Francesco ...

Sydney Street Art Time Lapse

I often feature street art and time lapse video but here's something that includes both in Sydney.

Hanging above George Street (near the Sydney Town Hall) is Janet Echelman's Tsunami 1.26,  Constructed over several nights, this time lapse video was made by the Powerhouse Museum with three cameras taking over 3146 photos over the three-day installation process.

Enjoy.

Francesco ....

Strata: Hypothetically Speaking

Last week I ran 2 hypotheticals at the SCA Victoria Principals Forum in Torquay.


They included a range of stakeholders, scenarios that raised challenges for each of them, and the opportunity to demonstrate the effect of different decisions and how the combined effect of decisions can lead to even more dilemmas.  Through the Strata Hypotheticals I was asking everyone to think - What if this happened to you ???


They got great responses, so, Im sharing them on this blog too.  But I'm doing that in stages by explaining the hypothetical scenario and then highlighting the issues and options that it creates.  In that way you can do more than just enjoy (and learn from) it ... you can participate as well. 


So, here's the simple Strata Hypothetical.

A Strata Meeting in Danger

• In this Strata Hypothetical you’re one of two characters 
• Jane, a junior strata manager at Everything Strata Management or  John, the principal of Everything Strata Management
• Your company manages an older run down building in the wrong part of Footscray that’s located at the end of a small dark lanewayA dispute has been brewing about the ground floor and basement lots
• You see, they’re leased from the owner by Rocco and Enzo who run a bar and nightclub
• Apart from the usual problems of noise, rubbish and damage to the building by rowdy patrons in the early morning hours, there’s also been a series of police raids and arrests for drug offences
• So, the chairperson has involved local council and they’re trying to shut down the bar and nightclub
• Rocco and Enzo are not too happy about this and have (allegedly) threatened the chairman over the dispute and interference
• Now a meeting has been called for 8.30 pm Monday night at the building to take legal action against Rocco and Enzo and to raise a levy to pay for it
• Rocco’s called Jane and said the meeting had better not approve legal action or there will be trouble.  He also said that it was not worth her while to get involved in this
• John also spoke to the chairperson who said that they had better attend the meeting and help him get the motions passed or they would lose the management of the building
• Jane doesn’t want to go to the meeting
• John doesn’t want to lose the management

What are the issues for John and Jane?
And, what would you say and do if you’re John and/or Jane?

I'll post about the issues and options later this week.

Francesco ... 

Art Imitates Strata Life

I like strata and I like the TV show Frasier (I know it's lame).


And, I was reminded last week about a Frasier episode that featured his strata corporation (or condo) woes called Three Days of the Condo.


It's a funny story that starts with an infringement notice when Frasier adds an antique door knocker to his front door, covers Frasier's attempts to make changes in the committee and ends with his ignominious exit from the strata corporation meeting.  


Whilst purely fictional and made for entertainment, I'm sure we can all see elements we've experienced in this witty episode.


And since everything seems to be available these days online you can watch the episode here on Youtube in 3 parts.


Part 1
Part 2
Part 3








Enjoy.




Francesco ...   

Strata Title in a World of Climate Change

These days limate change is affecting everything in this world - including strata title.

A research team led by Professor Chris Guilding and including Dr Jan Warnken, Dr Dawne Lamminmaki, and Professor Bill Randolph have secured a research grant from the government funded  National Climate Change Adaptation Research Facility to examine the functioning of strata corporation committees in a world of increased climate change. And, they've engaged me to conduct the study over the next 16 months. 

The objectives of the study include -

• Examining the extent to which uncertainty is built into strata corporation common property capital expenditure forecasts.
• Examining the adequacy of strata committee decision making powers and the adequacy of procedures relating to the release of funds in the face of increasing common property expenditures combined with a greater incidence of emergency expenditures.
• Providing legislative recommendations to ensure the executive in strata complexes appropriately protect complexes against increased damage occurring in world of climate change.

When the study is completed it will deliver a few things (at least) as follows.

1.  A manual for strata corporation members, “sinking fund forecast” professionals, building insurers and strata managers detailing how uncertainty is currently built into common property capital expenditure forecasts and what constitutes best practice for incorporating greater flexibility into common property capital expenditure forecasts.

2.  A report for legislators that details legislation recommendations that will promote strata corporation and strata committees maintaining the physical integrity of common property in a world of heightened climate change building damage.

3.  A series of papers that disseminate the study’s findings.

Interested strata stakeholders should contact me to find out more and to be part of the study (in whatever way is suitable to them).

It's one of the first research exercises about the effect of environmental issues on strata corporation operation, management, funding and governance.  And, should reveal some interesting challenges that will be faced by strata corporations trying to deal with uncertain and unpredictable events and possibilities.

Francesco …

The Amazing Folding Apartment (Origami Style)

Apartments mean space and living compromises.  
They're usually rationalised as worth it for the location, views, facilities, and lifestyle.  But why should that be the case?  And, why can't we make small spaces work better with cleverness and ingenuity?  Like this amazing tiny apartment in Manhattan.

Schoolteacher Eric Schneider purchased his 450-square-foot Manhattan apartment in 2005, and then hired architects Michael Chen and Kari Anderson of Normal Projects “to pack more density into his small space”. The result was the Unfolding Apartment, essentially a four room origami apartment that unfolds and “morphs with the changing activities of a day”.

Filmmaker Kirsten Dirksen of *faircompanies.com took a tour of his unique apartment and filmed all the ways the custom cabinetry can be configured.

It's a fantastic example of what can be achieved.


Francesco ...

South Africans Watching 50 Years of Australian Strata Titles

South African strata titles was based on the NSW system and laws and I've posted about their 2011 law reforms before (Strata Law Changes in South Africa).


And, now in Paddocks Press they've published a short article by me about the first 50 years of Australian strata titles that might interest you.


So, read it when you can to find out about the key changes and drivers of Australian strata title.  It's an interesting (and instructive) story.


And, thanks to Paddocks for promoting my article.




Francesco ...

Biking down Broadway in NYC

It's all about bikes in big cities these days.


So, here's a time lapse video of a bike ride along the whole of 13 miles of Broadway (from Inwood to Downtown Manhattan).


Enjoy!

Francesco ...

Where Will Our High Rise Future be Built?

Everyone knows that cities are going to keep going up (rather than out) but, despite that, many cities resist going vertical.


In this excellent article about the challenge called Does Manhattan have a future as a great metropolis?, Nicolai Ouroussoff suggest that "our messy process of democratic development hinders the new tilt toward enlightened urbanism".  He highlights the proposition contrasting the examples of New York, where new mega towers are being height limited to preserve the iconic skyline, as opposed to Shanghai, where there appear to be no vertical limits to buildings and where a completely new (and unique) skyline is being created.


So, it appears that progress towards high rise urbanism is moving from the West to the East and Middle East.  For instance, The Council on Tall Buildings and Urban Habitat reports that most super tall commercial towers will be in China, the United Arab Emirates, Saudi Arabia and Russia by 2020. 

It's a shame the west is losing ground here due to nimbyism and I'm sure that this debate will continue forever.   But it's important to realise that progress is always challenging and upsets the existing order but that it will always happen somewhere.


Francesco ...

Musical Chairs In NSW Strata Law

What's going in in NSW strata law firms as well know lawyers move around the traps?  Who knows ... but when the music stopped this is what happened.

• Ian McKnight has left Makinson & d'Apice and has joined Grace Lawyers
• Stephen Goddard has closed his practice and has joined Teys Lawyers
• Suzie Broome & Beverley Hodgingkson-Green have closed their practice and joined Makinson & d'Apice

That means two less strata law firms operating in NSW and more concentration of the existing people.
Watch this blog for more news as it happens.


Francesco ...

Strata Hypotheticals Make Everyone Think

Later this week I'll be running some Strata Hypotheticals (in the style of Geoffrey Robertson) at the SCA Victoria Symposium in Torquay.


The hypotheticals will play out some typical (and not so typical scenarios) that pose legal, practical and moral dilemmas for the usual strata stakeholders.  And we'll watch to see how the participants deal with them.


It'll be a lot of fun but also help everyone think about the complex and often difficult issues faced in strata corporations everywhere - every day, week or month.  And they allow old and new managers to share their experiences and wisdom.


I hope you can come along to enjoy the Strata Hypotheticals.  But, if not, I'll be featuring some of the highlights in this blog.




Francesco ...

Hey NSW Fair Trading ... What About Strata Owners?

This week is Fair Trading Week in NSW.  5 days when NSW Fair Trading showcases the consumer areas it's responsible for and provides useful public information in a series of events around the state.  The schedule is here.
But, what happened to strata title owners and occupiers?  
In NSW there's over 60,000 strata corporations and over 700,000 strata owners under the regulation of NSW Fair Trading. 
And for all of them this week NSW Fair Trading is running just 1 seminar in Batemans Bay.
Now, don't get me wrong.  I'm sure that there should be a strata title seminar in Batemans Bay (and it's a really nice place). But, I think that there should also be seminars in a few other places too - like various parts of Sydney, Wollongong, Newcastle, the Central Coast and the North Coast - where there's a lot of strata apartments.  

After all, there's plenty of people in NSW who want (and perhaps more importantly need) to know more about strata ownership, living and management.  If you're one of them you'd better head to Batemans Bay on Thursday.
It's pretty disappointing and probably reflects how importantly (not) NSW Fair Trading regards strata title owners. 
C'mon ... surely we can do better than this.?


Francesco ...

Australian Outback Skies Timelapse

I'm always blogging about high rise, cities and urban issues.
But, for the weekend I couldn't resist taking a break with these amazing timelapse images from Australian photographer Lincoln Harrison.
In these photos he captures long exposures of star trails in the night sky above the Australian outback. 
There's also a fascinating description of the grueling (and freezing) process of capturing the photos in this Daily Mail article.
Enjoy!

Francesco ...

NSW Briefing on Home Warranty Laws

I've been featuring the vanishing NSW Home Warranty protections for some time in this blog and recently posted about the latest law changes (see Hurry Up! Before NSW Home Building Insurance Disappears Completely) which further reduce strata owner rights.


Now SCA (NSW) will be conducting an Information Briefing Session about the recent changes to the Home Building Act covering the impacts on current and future statutory warranty claims against builders, developers and insurers as well as new construction contracts.


It's being held at 7.00 am on Thursday, 24 November at the Holme Building, Sydney University and costs $39.


So, why not attend to find out more?  You can register by emailing Lucy Byers at SCA (NSW).




Francesco ...

Going Up is Going Down Down Under

The latest figures released by the Australian Bureau of Statistics for building approvals reveal a serious slow down in new construction around Australia.


In September 2011 building approvals fell by 13.6% (seasonally adjusted) after an increase in August.  That makes the year to date result a 12% drop in approvals around the country.


On a state-by-state basis, overall building approval levels for all types of construction were -

• a 32.2 per cent drop in New South Wales
• a 13.6 per cent drop in Victoria
• a 4.8 per cent drop in Tasmania
• a 1.5 per cent drop in Western Australia
• a 0.1 per cent increase in Queensland
• a 11.3 per cent increase in South Australia

So, it's bad news for high density housing - which is just not going up (in all senses) at the moment.

And, this is another sign that the Australian housing sector continues to struggle with elevated interest rates, a shift by consumers to paying down debt rather than taking out new loans, and economic uncertainty triggered by overseas debt worries.

Francesco ...

More Doubts About Simplifying NSW Common Property

Last week I posted about an initiative of NSW Fair Trading to introduce a Strata Memorandum called  Who is responsible for items in a Strata Scheme that simplifies working out what is (and is not) common property (see A Strata KISS in NSW).


I made the point that working out where lot and common property boundaries are and who is responsible for what has never been a real problem if you applied basic principles of plan reading and legal interpretation and got advice when necessary - so the Memorandum was of little value.  


And, it seems I'm not the only one who thinks that.


Michael Teys of Teys Lawyers blogged recently in a post called Strata Industry Working Group disrespects the legal process about the same thing and said "a strata scheme’s plan together with the strata legislation does this work. Where there is conflict the courts resolve the matter and under our system of justice, these judgments are binding precedents for determining future disputes", "a generic list written by the bureaucracy and supported by a group of surveyors and strata managers disrespects this legal process" and "This initiative, far from resolving strata community conflict will fuel more and a whole new legal debacle is about to unfold."


So, he's not in favour of this attempted simplification.



To make your own decision, why not read the Memorandum for yourself and let me know what you think?


And watch this strata boundary space for future developments.




Francesco ... 

Another OCN Meeting in Sydney

The Owners Corporation Network is meeting again in Sydney next week.


So why not join them at 10.00 am on Saturday, 19 November 2011 at The Station, Jackson’s Landing, Bowman Street, Pyrmont (located directly opposite Jones St) for their Annual General Meeting.


The meeting is considering a structure change to a company limited by guarantee and guest speakers Suzie Broome and Beverley Hoskinson-Green, from Makinson & d’Apice Lawyers, will speak about recent changes to the Home Building Act 1989 which I blogged about last week (see Hurry Up!  Before NSW Home Building Insurance Disappears Completely).


See you next Saturday.




Francesco ...

Good Urban Form for Queensland High Rise

Since we're going to have more (and more) high rise apartments let's make sure they're well designed and add to the urban form.


South East Queensland is one of the Australian high density hot spots with 2000 hectares of densely populated land along the coastline.  It poses current and future challenges as more high density real estate gets created.


And now that the Gold Coast Rapid Transit (GCRT) is becoming a reality the Urban Design Forum reports on some great initiatives to apply good urban design principles to future development so that the successes of the past are repeated and the mistakes avoided.  That's included modelling several corridor wide 'built form structures' for discussion in stakeholder sessions, suggesting changes to planning and market settings to reduced 'tower crowding' and the consequent impact on views, micro climate, shadowing and liveability.


It's a really worthwhile exercise to get better long term outcomes.


If you're interested in urban planning and design issues (and how they affect high density real estate) the Planning Institute of Australia and it's publication Urban Design Forum and is a great place to see what's going on.




Francesco ...

Strata Community Australia has some News

Strata Community Australia’s latest Newsletter Strata Living is out now.

It’s got all the usual features and a special report about innovative uses of rooftop spaces.

You need to be an SCA member to get a copy (so why not join SCA?) but you can see highlights and excerpts here.   

Francesco …