Have Government Reforms Made Apartments The Most Attractive Property Investment?

New reforms in October 2026 have altered the Owners Corporation Act in Victoria, leading to significant changes across the board - and this will have an impact on property investment as a whole. The main aim of the reform is to make OCs more accountable for shared property maintenance, while also improving transparency and increasing the protections in place for property owners.

All in all, it's being billed as a great addition that makes it easier for people to invest in and manage shared properties. With that in mind, there's a lot of chatter online and across various news channels that entertains the idea of apartment investments becoming more attractive than ever before. It's down to some of the changes that this reform enacts, and there's a genuine question of whether it could be better to invest in an apartment over a traditional house now.

The Case For Apartments Being A More Attractive Investment

You need only look at a full list of OC Act reform winners and losers to see why arguments are being made in favour of apartment investments over traditional houses. The key thing is that people believe there is more buyer confidence with some of the new rules in place. In the past, one of the biggest barriers that may have prevented someone from buying an apartment was that they worried about the following:

• ● Badly managed OCs
• ● High management fees
• ● Hidden fees or commissions
• ● Extensive maintenance costs

By adding more transparency, the Act reforms should lead to better-managed owners corporations with more control over things like the maintenance of shared spaces. Additionally, many of the rules that are now in force will revolve around improving how apartment buildings are managed. Some argue that this gives investors more confidence in choosing an apartment over another property.

Others may address this and say, how does this change the investment landscape at all?

Well, the argument is that apartments have always seemed like attractive investments; there just wasn't enough protection for investors. When you purchased an apartment within a building, you had to deal with OCs and all the costs associated with managing the property. This won't change, but it could become easier for people to manage. Part of the reform also allows more leniency for owner-occupier repayments in times of hardship. Individuals who invest in an apartment will be able to apply to delay levy repayments through a 12-month financial hardship program.

This particular change matters because a lot of investors may have been inclined to sell apartments quite quickly because levy repayments become too much during difficult financial times. Now, with delays possible, it enables investors to hold onto their apartment as they manage hardship. It's well known that the cost of living is soaring due to oil prices and various global conflicts, so this change could make an apartment investment more feasible for someone to hold on to in trying times.

The overall argument here is that some of the downsides or barriers that may prevent someone from investing in an apartment are a lot thinner. Apartments still produce higher rental income for investors and could hold their value over time a lot better than some houses in the same area.

Does this mean they're a guaranteed better investment? No, not at all.

The Case Against Apartments Being A Better Investment Now

On the other side of the argument, sceptics see the OC Act reform as an improvement for some people who have already invested in apartments, but not something that will encourage more investment from anyone else.

The fundamental thing to understand is that these reforms don't actually do anything in terms of improving capital growth. Property prices will remain the same, rental rates will remain the same, and it's not one of those reforms that introduces schemes to make apartments more affordable for investors.

Not only that, but the reforms aren't going to eliminate owners corporation fees entirely. The stronger regulations are designed to provide greater transparency and protection against conflicts of interest with regard to these fees, but that won't guarantee that they'll reduce. An investor still has to contribute towards the maintenance and management of shared facilities within the building where their apartment resides.

In fact, some people have reacted to this news by suggesting that the new regulations in place could actually cause management costs to go up, but that is purely theoretical at this point.

Generally speaking, there is a big argument that nothing has really changed enough to push apartments into the spotlight as a "must-invest" property, particularly when compared with traditional domestic housing.

Does This Mean Apartments Aren't Worth Investing In?

No. The key thing to understand from all of this is that the reforms to the OC Act haven't really been designed to improve apartments as an investment option, nor are they making them less attractive. Apartment investments are one of those things that some people will naturally prefer over others. Certain investors see the value in an apartment over a home because they believe they can make it work - or they like the option to turn it into a long-term rental option that they can also live in if they need to.

The reforms simply aim to improve things for those who are already investing in apartments and have to deal with OCs. They're unlikely to impact ROI, but they could make managing this type of investment easier and less restrictive for those involved.

Ultimately, the property market remains a great place to invest, whether you're opting for apartments, houses, or anything else. Depending on a person's investment strategy and goals, this could mean that an apartment is the best choice - or it could mean that residential housing comes out on top. Rather than focusing on the OC Act reform and whether it creates new opportunities, investors should look at their current portfolio and short/long-term goals when deciding where to spend their money next.

There are undoubtably some bigger winners as a result of this reform, but the government certainly hasn't automatically made apartments the most attractive investment choice out there.