Do you need a building inspection for an apartment?

Buying an apartment in Melbourne is an exciting milestone, whether you are stepping onto the property ladder for the first time or adding to a growing investment portfolio. Amid the whirlwind of listings, inspections, contract clauses and finance deadlines, one question often surfaces: do you really need a building inspection for an apartment?

Houses, after all, sit on their own land and bear the brunt of weather, termites and shifting soil. Apartments, by contrast, share walls, roofs and services, so the common perception is that they are lower risk. The reality is more nuanced. In Victoria, defects in multi-storey developments average 2.13 per dwelling, costing an estimated $675 million every year, making apartments the state's most defect-prone housing type.

Below, we unpack why a pre-purchase building inspection still belongs on your checklist, how it differs from a strata report, when to book it and what it might cost.

What Is a Building Inspection, Exactly?

A pre-purchase building inspection is an independent, visual assessment of the property's condition, carried out by a qualified building inspector, surveyor or architect. The inspector looks for structural movement, damp, safety hazards, workmanship issues and incomplete finishes, then supplies a written report usually within 24 hours highlighting major, minor and maintenance defects.

Consumer Affairs Victoria recommends arranging one before you sign or bid, calling it "a valuable investment that can save you from unexpected and costly repairs". Inspections can be combined with a pest check, which is useful even for high-rise apartments because termites and borers travel through timber framing, planter boxes and sub-basements.

Is It Mandatory in Victoria?

No. Victorian law does not compel buyers to commission a building inspection for any property type, including apartments. The vendor must provide a Section 32 statement (vendor statement) disclosing title, services easements, outgoings and any notices, but this document seldom details the apartment's physical condition.

Consumer Affairs Victoria merely advises purchasers to "work out if you need to make the purchase subject to a building inspection" in private sales, and to have the report in hand before auction day, where no conditions can be added afterwards. In short, the decision is yours yet skipping the inspection means waiving one of the few safeguards you control in an increasingly competitive market.

Why Apartments Still Carry Hidden Risks

Many high rise and medium-density buildings erected in the past two decades show recurring defects: water ingress around windows and balconies, combustible cladding, cracked façade panels, tiling failures and inadequate waterproofing. Cladding Safety Victoria's rectification programme alone is tackling $600 million of combustible cladding on residential towers.

Balcony rot has been flagged as Victoria's "next big crisis", with more than half of inspected buildings exhibiting dangerous timber decay. Recent headlines from Ringwood revealed residents wading through ankle deep water after drainage defects in a 2020 built complex, proving that even near new apartments can harbour serious flaws.

A professional inspection can identify early signs of these issues inside your lot and, when possible, in accessible common areas.

Common Property versus Private Lot: Who Pays?

Understanding what falls under the owners corporation (OC) and what remains your responsibility is crucial. Under section 46 of the Owners Corporations Act 2006, the OC must repair and maintain common property lobbies, lifts, the roof, external walls and service risers. However, owners ultimately finance that work through regular and special levies.

Statutory warranties against the builder last 10 years under the Domestic Building Contracts Act 1995, yet enforcing them often means costly litigation and tight deadlines. An inspection that flags latent defects gives you leverage to renegotiate price or walk away before you inherit a share of a multimillion dollar repair bill.

Strata Report or Building Inspection Do You Need Both?

A strata (or owners corporation) report analyses the building's financial records, insurance, minutes and by-laws. It reveals disputes, levy arrears and upcoming capital works. A building inspection, on the other hand, is a physical health check of the apartment itself and, where possible, visible common property.

Industry experts suggest ordering the strata report first; if it raises red flags water penetration claims, litigation, budget blowouts share it with your inspector so they know where to focus. The two reports together paint the full financial and physical picture, helping you gauge future levies and resale value.

Timing Your Inspection in Melbourne's Market

Private sale: Make your offer "subject to building and pest inspection". This conditional clause buys you time (usually 7-14 days) to organise the inspection and negotiate repairs or a discount.

Auction: Because contracts are unconditional once the hammer falls, organise the inspection well before auction day and factor any findings into your bidding limit.

Off the plan: Developer warranties apply, but inspecting at settlement picks up incomplete finishes and major faults, enabling a swift defects list before keys change hands.

How Much Does a Building Inspection Cost?

Prices vary by size, age and complexity. In 2025, Melbourne buyers pay on average $380 – $480 for a small apartment or unit when the inspection is bundled with a pest check, according to industry surveys. Stand alone building inspections can start at about $350 and climb to $500 for larger or older apartments.

While every dollar counts in the current market, the inspection fee is minimal compared with the cost of rectifying hidden structural damage later.

Choosing the Right Inspector

Look for a practitioner registered with the Victorian Building Authority or a member of the Master Inspectors Association of Australia. Ask for sample reports to assess clarity and depth. Confirm that the inspector carries professional indemnity insurance, uses moisture metres and thermal imaging where relevant, and is willing to inspect common property areas (subject to OC permission).

A good inspector will invite you to attend, explain findings in plain language and deliver the report within one business day, giving you time to act.

Consequences of Skipping the Inspection

Unexpected special levies to fund façade repairs, cladding removal or lift replacement can run into tens of thousands of dollars per lot.

Financing hurdles arise when banks value defect ridden apartments lower, shrinking available loan amounts.

Insurance complications occur when insurers load premiums or reject cover for known defects.

Stress and time: Defect disputes can drag through VCAT or the courts, consuming months of meetings and reports.

A pre-purchase inspection will not eliminate every risk some areas are simply inaccessible at the time but it dramatically narrows the unknowns.

Key Takeaways for Melbourne Apartment Buyers

Building inspections are not compulsory in Victoria, yet Consumer Affairs and the Victorian Building Authority strongly recommend them.

Apartment defects, from water ingress to cladding, are widespread and expensive to fix.

A strata report complements, but does not replace, a building inspection.

Book your inspection early before auction or within a contract's cooling off window.

The typical outlay of $350-$480 is tiny compared with potential repair levies.

Conclusion and Call to Action

Melbourne's apartment market continues to evolve, shaped by rapid construction, changing regulations and eager buyers. In this environment, a thorough building inspection is one of the smartest investments you can make. It arms you with facts, strengthens your negotiating hand and may save you from inheriting costly, long term problems. Before you sign or bid, engage a qualified inspector and review both the strata records and the Section 32.

Need guidance on the legal side? Contact Pearson Chambers Conveyancing today for clear advice and a free Section 32 contract review. Our team can coordinate your building and strata inspections, clarify contract clauses and ensure every detail is in your favour.

Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au