The Impact of Sydney’s Building Boom on Inspection Standards

Sydney has undergone rapid urbanisation in recent years, driven by a soaring population and an overwhelming demand for housing. With median house prices reaching AUD 1.6 million in 2024/25, the city has experienced an unprecedented construction boom.

However, this surge in development has brought with it a concerning reality: to meet demand, developers are delivering buildings at an alarming rate. This has raised serious questions about construction quality, compliance, and safety.

Reports of structural defects, fire hazards, and poor workmanship have become more common, highlighting the challenges of maintaining both high NSW building standards and inspection quality amid rapid expansion. Ensuring rigorous oversight and accountability as Sydney grows is more crucial than ever.

At BeSafe Property Inspections, our decades of experience ensure that every assessment adheres to Australian Standard AS4349.1, which sets rigorous requirements for pre-purchase building evaluations. In this article, we explore the impact of Sydney’s construction boom on inspection standards and how thorough property inspections represent a vital step in safeguarding homebuyers from potential risks.

The Current State of Sydney’s Building Boom

Sydney’s construction sector is growing at an unprecedented rate, driven by a rapidly increasing demand for housing and infrastructure. Driven by natural growth and migration, the city is expected to accommodate approximately 650,000 new residents by 2034, marking a 13% jump in just ten years.

Currently, Sydney houses 429 people per square kilometre, a figure that is set to rise to 520. While these numbers are still much lower than global cities like London and Toronto, which have over 4,300 people per square kilometre, high-rise projects have reshaped the city’s skyline.

In response, the NSW Government has introduced strategic planning reforms, allowing for higher-density development, such as townhouses, terraces, and two-storey apartment blocks, in areas that were once strictly low-density. Thus, building approvals across New South Wales have risen by 12%, according to the Australian Bureau of Statistics.

These reforms create significant opportunities for growth, but they also present challenges that need to be navigated to meet the growing demand for housing while still maintaining high standards in construction and safety.

Building Inspectors Report Surge in Defect Cases

Sydney’s rapid urban expansion has led to an equally rapid pace of development, but this growth has come at a cost. In the rush to complete projects and meet demand, many builders are cutting corners, leading to a troubling trend in building quality.

A staggering 53% of apartments registered between 2016 and 2022 have at least one serious defect, and the number of reported defects in strata developments has doubled. Many of these issues stem from developments completed before the introduction of the state’s new building legislation, meaning defects are only now being inspected and reported.

While poor construction practices play a major role, other factors such as climate and soil conditions also contribute to defects. Some of the most common defects that are reported include:

Structural Cracking

Structural defects are a common issue found in many Sydney properties. One of the primary causes is soil movement, particularly in areas with expansive clay soils. These soils expand and contract with changes in moisture levels, leading to foundation shifts and cracks in walls.

Additionally, poor construction practices, such as inadequate footing design or improper soil compaction, can also cause significant structural cracking. While minor hairline cracks are often harmless and result from natural building settlement, larger, widening cracks, especially those accompanied by uneven floors or sticking doors and windows, may indicate serious structural instability.

Water Ingress and Moisture Issues

Water damage is one of the most frequently reported defects in Sydney properties, affecting 42% of surveyed buildings. Sydney’s coastal regions, with their high rainfall and humidity, are particularly susceptible to moisture-related issues. Additionally, poor drainage, faulty gutters, and inadequate waterproofing are all common causes.

Leaks often appear in balconies, roofs, windows, and bathrooms due to poor sealing, installation errors, or material deterioration over time. These problems manifest as internal water leaks, defective roof coverings, and failing seals in wet areas.

Roof Defects

Harsh weather conditions, including heavy storms and rainfall, can weaken roofing materials. Poor workmanship during installation as well as the use of substandard materials further increases the likelihood of leaks, structural weakness, and premature roof failure.

Pest Damage

NSW’s warm climate makes it an ideal breeding ground for termites and other pests. If left untreated these pests can cause significant structural damage. Undetected termite infestations, in particular, can weaken timber structures, leading to costly and sometimes irreparable damage if left.

Key Quality Control Challenges For NSW Building Standards

Labour shortages, material quality issues, and strict deadlines have led to a rise in defects and safety concerns.

• Labour Shortages Create Risks: Australia is experiencing its worst engineering skills shortage in over a decade. With a growing demand, there simply aren’t enough qualified professionals available to successfully oversee projects. This shortage increases the risk of substandard work going unnoticed, leading to long-term safety and compliance issues.
• Material Quality Suffers: The increase in construction has placed immense pressure on material supply chains as well, resulting in compromised quality. NSW Fair Trading receives approximately 11,000 complaints annually regarding defective building work, with many cases linked to poor material quality and property damage. As demand continues to rise, ensuring the use of high-quality materials remains a major challenge.
•  Time Pressures Impact Quality: Tight project deadlines put immense pressure on construction teams to complete buildings as quickly as possible. This often results in rushed work, out-of-sequence construction, and an increased likelihood of defects.

Implementing Stricter NSW Building Standards

In response to growing concerns over building defects and declining construction standards, the NSW Government has introduced a series of rigorous reforms aimed at restoring trust, enhancing accountability, and ensuring compliance across the industry. These updated NSW Building standards target systemic issues, strengthen oversight, and uphold the integrity of the state’s construction sector.

•  Expanded Powers for the NSW Building Commission: The NSW Building Commission now has greater authority to inspect construction sites and intervene before defects become long-term liabilities.
• Stronger Regulations on Building Materials: The government has put measures in place to reinforce supply chain accountability, ensuring all construction materials meet stringent compliance and safety standards. Builders and suppliers must now verify that all products used in developments are suitable, high-quality, and adhere to Australian regulations.
• Proactive and Targeted Auditing Programs: To identify and mitigate risks before they escalate, the NSW Government has rolled out a series of strategic auditing initiatives including unannounced inspections of multi-unit residential projects based on risk assessments, tip-offs, or developer histories.
• Greater Accountability in Design and Construction: Stricter measures have been implemented to ensure engineers and contractors are held accountable for their work. These require engineers to formally certify structural adequacy, while contractors must uphold their contractual obligations, reducing the risk of substandard construction.

What Can You Do? The Importance Of Building Inspections

Research shows that 89% of building inspection reports reveal hidden problems. Thus, to protect the interests of prospective buyers and investors, it is essential to conduct a thorough inspection.

Building inspections are a vital safeguard in property transactions, offering an essential, detailed picture of a property’s true condition. These inspections assess both the interior and exterior of a property, helping to prevent defects or damage that might not be immediately visible to the untrained eye. These may include structural defects, safety hazards, water damage, or pest infestations that could lead to significant financial and safety concerns.

Beyond protecting buyers, building inspections provide crucial negotiating power. The identification of both major and minor defects allows buyers to make more informed decisions about whether to proceed with the purchase or reevaluate their offer.

Should defects be revealed, the inspection report provides documented evidence that can inform the next steps to address any problems such as requesting repairs, negotiating a price reduction, or even walking away from the deal altogether.

What Is Included in a Property Inspection?

The scope of a property inspection will often vary depending on the provider. At Be Safe Property Inspections, we are members of Master Builders Australia and adhere to Australian Standard AS4349.1, which sets rigorous requirements for pre-purchase building assessments.

Our team conducts a thorough assessment to identify both major and minor defects in the property, ensuring that every inspection is carried out with the highest level of expertise and care. The inspection typically takes between 1 to 3 hours to complete, depending on the size and condition of the property. Our inspectors carefully examine key areas, including:

• Interior and exterior structural elements
• Roof space and exterior conditions
• Under-floor areas
• Site conditions and drainage

What Is The Investment?

At BeSafe Property Inspections, our pricing structure is designed to reflect the size and complexity of the property being inspected, ensuring that you receive the best value for your investment.

For a typical three-bedroom home, the cost of a building inspection begins at $425, while larger properties may incur fees up to $730. Many buyers opt for a more comprehensive approach by bundling their inspections. Our combined building and pest inspection packages start at $525 for houses and $425 for units.

In addition to our core inspections, several add-on services can offer further insight into the condition of the property. These services, priced between $100 and $350, include electrical safety checks, digital floor level analysis to identify structural movement, advanced termite detection systems, and asbestos testing for homes built before 1985.

Key Takeaways

As Sydney’s construction industry faces increased pressures, ensuring your property is up to standard is more important than ever. Rapid urban growth, increasing population and demand for housing have placed immense pressure on the construction industry. As developers race to meet these needs, quality control has often been compromised, resulting in a rise in building defects and safety concerns.

However, the NSW government’s implementation of stricter standards, along with thorough building inspections, offers a crucial layer of protection for property buyers. By identifying potential defects early, purchasers can make more informed decisions, negotiate effectively, and safeguard their investments.

At BeSafe Property Inspections, our licensed builders and inspectors provide comprehensive inspections in full compliance with Australian Standard AS4349.1. We offer next-day inspections (subject to availability) and, when necessary, same-day reports. Safeguard your investment—schedule your inspection with BeSafe today and secure the peace of mind you deserve.