Strata premiums should start to level out and maybe even decrease this year, according to leading brokerage Whitbread.

The Melbourne-based and Steadfast-owned business has released a market outlook for 2025, and says it is hopeful the coming months will be “less turbulent and more predictable”.

“As inflation stabilises, so too will rate changes and average premiums,” it says. “The market correction in recent years with material increases in premium rates has achieved rate adequacy for most insurers.

“It is anticipated that rate changes will be lower and there is the potential for reductions.

“This is particularly the case for desirable risks that are well maintained and in locations rarely exposed to weather events like cyclones and floods. 

“Some residential policies with a good risk profile are currently being renewed at the same rate or at a reduced rate compared to last year.”

Whitbread says properties with defects and a poor claims experience “will continue to experience larger premium increases and ... higher excesses”.

However, defect rectification or risk mitigation can give access to better terms.

Whitbread also says construction cost inflation is “expected to ease slightly” this year. “This will have a positive impact on controlling claims costs and steadying premiums.”

See the full outlook here.