How We Calculate Contract Values
UNDA estimates the annual contract value for every strata scheme in NSW. Here's exactly how — and why you should trust the numbers.
Market Summary Statistics
NSW Strata Market — Contract Value Model v2.2
| Segment | Managed % | Schemes | TAM (Conservative) | TAM (Achievable) |
|---|---|---|---|---|
| 2-4 lots | 30% | 43,415 | A$89M | A$111M |
| 5-9 lots | 87% | 20,134 | A$81M | A$102M |
| 10-15 lots | 94% | 10,902 | A$66M | A$79M |
| 16+ lots | 97% | 13,756 | A$203M | A$264M |
| Total | 88,207 | A$439M | A$555M |
Overview
UNDA estimates the annual contract value for each strata scheme in the market. These estimates help you understand:
The relative value of buildings in your portfolio and your competitors'
Market share by revenue, not just building count
The dollar value of acquisition opportunities
All estimates are conservative — we'd rather understate than overstate. The figures represent recurring annual management fees only.
Model Version: 2.2 (February 2026)
How Contract Values Are Calculated
Contract values use graduated per-lot rates that reflect how strata management fees are actually structured in the market. Smaller schemes have higher per-lot rates because fixed costs — AGM attendance, annual financials, insurance renewal, compliance — must be absorbed across fewer lots.
Rate Schedule
| Building Size | Conservative Rate | Achievable Rate |
|---|---|---|
| 2-4 lots | $800/lot | $1,000/lot |
| 5-9 lots | $600/lot | $750/lot |
| 10-15 lots | $500/lot | $600/lot |
| 16-30 lots | $400/lot | $500/lot |
| 31-50 lots | $350/lot | $450/lot |
| 51-100 lots | $300/lot | $400/lot |
| 101+ lots | $260/lot | $350/lot |
Conservative reflects core management services only — AGM coordination, levy collection, record keeping, basic compliance.
Achievable includes realistic additional activity such as extra committee meetings, minor project coordination, and routine contractor management.
Example Calculations
| Building | Lots | Conservative | Achievable |
|---|---|---|---|
| Duplex | 2 | $1,600 | $2,000 |
| Small townhouse | 4 | $3,200 | $4,000 |
| Townhouse row | 8 | $4,800 | $6,000 |
| Small apartment block | 12 | $6,000 | $7,200 |
| Medium block | 20 | $8,000 | $10,000 |
| Mid-size complex | 50 | $17,500 | $22,500 |
| Large apartment building | 100 | $30,000 | $40,000 |
| High-rise tower | 250 | $65,000 | $87,500 |
Why Graduated Rates?
Analysis of NSW management patterns reveals that per-lot rates vary inversely with scheme size:
| Segment | Schemes | Professionally Managed |
|---|---|---|
| 2-4 lots | 43,278 | 30% |
| 5-9 lots | 20,049 | 87% |
| 10-15 lots | 10,864 | 94% |
| 16+ lots | 13,705 | 97% |
The low management rate for 2-4 lot schemes confirms owners resist paying professional fees for simple duplexes — our lower per-lot rate reflects this reality.
The high management rates for 5+ lot schemes (87-97%) confirm the economics work at our estimated rates — these are actively contested markets.
Market Summary
| Metric | Value |
|---|---|
| Total active schemes | 88,208 |
| Professionally managed | 54,143 |
| Unmanaged | 34,065 |
| Managed TAM (achievable) | A$463M |
| Unmanaged TAM (achievable) | A$93M |
| Total TAM (achievable) | A$555M |
WHAT’S EXCLUDED
The figures throughout are deliberately conservative. The exclusions below mean our estimates represent a floor, not a ceiling — actual revenue for many buildings will be materially higher than what we show.
To keep estimates conservative and defensible, we exclude:
Insurance commissions — under regulatory review (NSW Productivity and Equality Commission report delivered February 2026); SCA (NSW) members voluntarily phasing out, no legislative ban enacted
Major works project fees — sporadic, not annual recurring
Legal/tribunal fees — unpredictable and building-specific
Developer handover fees — one-time, not recurring
This means actual revenue for some buildings may be higher than our estimates, but you can trust that our figures represent a realistic baseline.
Where Our Rates Come From
Our rate schedule is validated against multiple independent industry sources:
Macquarie Bank 2023 Strata Management Benchmarking Report — survey of 270 strata management business leaders found average revenue of $240 per lot (2022 data). Adjusting for typical annual increases of 1.5-2%, this translates to approximately $250-260 per lot by 2026.
Industry practitioner benchmarks — owner-reported fees across NSW consistently fall in the $260-350 per lot range for medium schemes, with smaller schemes commanding higher per-lot rates due to fixed cost absorption.
NSW management rate analysis — the 30% professionally managed rate for 2-4 lot schemes confirms owners resist professional management at smaller sizes. The 87-97% rate for 5+ lot schemes confirms the economics work at our estimated contract values.
Our rates sit slightly above the Macquarie average because the $240 figure represents 2022 revenue (not 2026 contract price), includes high-volume tower operators who drive down the per-lot average, and reflects revenue actually earned rather than contract rates charged.
Using Contract Values
Portfolio comparison — Compare your portfolio value against competitors to understand true market position.
Opportunity sizing — Filter by contract value to focus on high-value acquisition targets.
Market share — See which managers control the most revenue, not just the most buildings.
AGM timing — Identify high-value buildings with upcoming AGMs — the window when contracts are most likely to change hands.
Contract Value Model v2.2 — February 2026 UNDA Management
About UNDA Management
UNDA Management provides market intelligence for strata managers — 89,000+ NSW schemes mapped, every manager linked, every contract cycle tracked. Our sister product, UNDA Development, provides precedent intelligence for property developers and property planning consultants. Learn more at unda.management