What to Check Before Buying an Apartment in Victoria (VIC)
- 2 hours ago
- 4 min read
The Ultimate 2026 Apartment Buyer's Due Diligence Guide
Why Apartment Due Diligence Matters More Than Ever
Victoria's apartment market offers attractive opportunities for first-home buyers, downsizers, and investors. Apartments are often more affordable than houses and provide convenient access to transport, employment hubs, universities, and lifestyle amenities.
However, apartment buyers face risks that house buyers do not.
When purchasing an apartment, you're not just buying a unit. You're also buying into:
The building
The Owners Corporation (OC)
Shared facilities
Future maintenance obligations
Potential special levies
A beautiful apartment can quickly become an expensive mistake if buyers fail to investigate the building's financial health, defect history, or upcoming capital works.
Before signing a contract, complete the following checks.
1. Review the Section 32 and Contract of Sale
The Section 32 Vendor Statement contains critical legal and financial information about the property.
Have your solicitor or conveyancer review:
Title Information
Ownership details
Easements
Restrictions
Covenants
Owners Corporation Information
Current fees
Special levies
OC rules
Insurance details
Planning Information
Zoning
Proposed developments nearby
Notices affecting the property
Services and Outgoings
Council rates
Water rates
Owners Corporation fees
Why This Matters
Many buyers discover issues after settlement that were disclosed in the Section 32 but never properly reviewed.
2. Investigate the Owners Corporation (Body Corporate)
This is arguably the most important due diligence step.
Request:
OC Certificate
AGM Minutes
Review at least the previous:
2 years
Ideally 3 years
Financial Statements
Check:
Administrative Fund balance
Maintenance Fund balance
Cash reserves
Insurance Certificate
Red Flags to Look For
Repeated Defect Discussions
Keywords such as:
Water ingress
Waterproofing
Balcony repairs
Concrete spalling
Cladding issues
Fire compliance
Large Upcoming Projects
For example:
Lift replacement
Façade works
Roof repairs
Balcony rectification
These can result in significant future levies.
3. Check for Special Levies
A special levy is an additional payment owners must contribute when the Owners Corporation lacks sufficient funds.
Special levies can range from:
$2,000
$10,000
$50,000+
Occasionally over $100,000
Ask:
Has a Special Levy Been Issued?
Is a Levy Being Discussed?
Are Any Building Reports Underway?
Many buyers focus on the purchase price but overlook future liabilities.
4. Understand the Owners Corporation Fees
Low OC fees are not always a positive sign.
Basic Buildings
Usually:
$2,000 – $4,000 per year
Buildings With Facilities
Including:
Pool
Gym
Concierge
Cinema
Residents' lounge
Can exceed:
$5,000 – $10,000+ annually
The key question is:
Are the fees adequate to maintain the building?
Very low fees may indicate underfunded maintenance reserves.
5. Research Building Defects
Some apartment buildings have known defect histories.
Common issues include:
Water Leaks
Especially:
Bathrooms
Balconies
Rooftop apartments
Structural Problems
Fire Safety Issues
Cladding Defects
Waterproofing Failures
Questions to Ask
Has the building ever had:
Insurance claims?
Defect litigation?
Builder disputes?
Waterproofing works?
6. Inspect the Apartment Carefully
Look beyond styling and furniture.
Check:
Ceilings
Signs of:
Water staining
Bubbling paint
Mould
Windows
Cracks
Failed seals
Condensation
Balcony
Cracks
Uneven surfaces
Drainage issues
Bathrooms
Silicone condition
Tile movement
Water damage
7. Check Natural Light and Orientation
Orientation significantly affects:
Comfort
Heating costs
Resale value
Rental demand
North-Facing
Generally preferred.
Benefits:
More natural light
Better winter sun
South-Facing
Often:
Darker
Cooler
8. Assess Noise Levels
Visit at different times.
Check:
Traffic Noise
Train Noise
Construction Activity
Neighbouring Apartments
Short-Stay Accommodation
Buildings with heavy Airbnb activity can create ongoing noise concerns.
9. Review Rental Demand and Vacancy Rates
For investors, examine:
Current Rental Yield
Vacancy Rate
Competing Stock
Future Supply Pipeline
High-rise precincts with significant new developments can experience rental competition and slower capital growth.
10. Understand Building Age
New Apartments
Advantages:
Modern finishes
Lower maintenance initially
Risks:
Unproven building performance
Potential defect emergence
Older Apartments
Advantages:
Larger floorplans
Established communities
Risks:
Ageing infrastructure
Future capital works
11. Check for Upcoming Developments Nearby
Research nearby planning applications.
Future projects may:
Block views
Increase traffic
Reduce natural light
Check with:
Local Council Planning Portal
Planning Victoria
12. Review Apartment Size and Layout
Don't focus solely on bedroom count.
Consider:
Internal Floor Area
Balcony Size
Storage Cage
Car Space
Functional Layout
A well-designed 55sqm apartment can outperform a poorly designed 70sqm apartment.
13. Verify Car Parking and Storage
Confirm:
Car space on title
Storage cage on title
Exclusive use rights
Do not rely solely on agent descriptions.
Verify through the title plan.
14. Check School Zones
For owner occupiers and future resale value, school zones can have a major impact.
Research:
Primary school catchments
Secondary school catchments
Future rezoning risks
15. Get Independent Legal Advice
Never rely solely on:
Online summaries
Sales brochures
Verbal statements
Before signing:
✔ Review the contract
✔ Review the Section 32
✔ Review Owners Corporation documents
✔ Review special levies
✔ Review building reports
Buying an apartment in Victoria involves far more than inspecting the unit itself.
The most expensive surprises usually come from:
❌ Building defects
❌ Special levies
❌ Underfunded Owners Corporations
❌ Future capital works
❌ Poor building management
A thorough due diligence process can save buyers tens of thousands of dollars and help avoid purchasing into a problematic building.
The best apartment purchases are not always the cheapest—they are the buildings with strong financial management, healthy Owners Corporation funds, low defect risk, and long-term owner appeal.
Disclaimer
The information provided in this article is intended for general informational purposes only and does not constitute legal, financial, taxation, lending, property, or investment advice. While every effort has been made to ensure the accuracy of the information at the time of publication, laws, regulations, government policies, market conditions, and property purchasing requirements may change without notice.
Purchasing real estate is a significant financial decision. Buyers should seek independent advice from qualified solicitors, conveyancers, accountants, mortgage brokers, and other relevant professionals before making any property-related decisions.
Core Elite Real Estate accepts no responsibility or liability for any loss, damage, cost, or consequence incurred as a result of relying on the information contained in this article.
