Selling Strata Airspace

May 20, 2022



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A great way to generate profit or funding through common property is to subdivide and sell airspace areas above the roof. This can be transferred to lot owners, developers or any other prospective purchasers. 


Potential issues 

As with all commercial transactions, however, there are always issues to be considered. These include: – 

  • Pricing 
  • Ensuring compliance with Council and legislation 
  • Tax implications for the Owners Corporation and for individual lot owners 
  • Structuring arrangements 


Approaches to structuring arrangements

Structures for these arrangements could be by way of the following: –

  • Subdivision and transfer
    • Airspace subdivisions are the subdivision of land above the surface of the ground. These are similar to strata title subdivisions, the only main difference being the techniques used. 
    • In New South Wales and Victoria these types of subdivisions are known as “stratum subdivisions”. In Queensland they are known as “volumetric subdivisions”
  • Conversion of a lot to common property
  • Management statements 
    • Strata 
    • Building 
  • Easements
  • Leases or licences
  • Development covenants/public positive covenants 
  • By-laws
  • Umbrella agreements


Process management

Once you have decided on what structuring arrangement is most suitable, the following must then be considered: –

  • All arrangements between component use areas are fair and sensible
  • The marketability of the commercial and retail components is justifiable
  • Separate decision making for each of the residential and non-residential groups is considered
  • A harmonious management environment is maintained 


If you are seeking advice on selling strata airspace or are even just considering the above, please do not hesitate to contact us. We can help you precisely form and execute a plan for strata airspace transactions and ensure the best possible outcomes. Specifically, we can: –

  • Plan the title, subdivision and management structure 
  • Prepare, update and distribute a legal program 
  • Draft and execute requisite legal documents 
  • Assist on structuring arrangements 
  • Advise on process management