Airspace rights in Australia: who owns the space above your building?

Airspace is the most overlooked asset on an Australian strata title. It appears on no balance sheet, generates no income, and in many well-located buildings is worth more per square metre than the apartments below.

Who owns it

Ownership of land at common law extends upwards, but that right is limited to the height a landowner can reasonably use. In a strata scheme, the space above the uppermost lot boundary is common property, held by the owners corporation on behalf of all owners. Freehold commercial buildings are simpler — the registered owner controls the airspace directly.

How it is turned into value

• Sale of a development right: the owners corporation sells the airspace to a developer who delivers the new lots.
• Owner-led development: the scheme funds the addition itself and sells the completed lots, keeping the margin.
• Lease or stratum: the airspace is leased for a term rather than sold outright.

In each case the proceeds usually flow into the capital works (sinking) fund, where they offset remediation, waterproofing, façade or lift upgrades that would otherwise be funded by special levies.

The legal steps

• Obtain a feasibility and valuation to establish what the airspace is worth.
• Brief a strata lawyer on the resolution type your state requires.
• Pass the resolution at a general meeting with proper notice.
• Obtain development consent for the addition.
• Register the strata plan amendment creating the new lot(s).

The airspace is already owned. Development simply converts an unused asset into either cash or new dwellings.

This article is general information, not legal advice. Strata law differs between NSW, Victoria, Queensland and other jurisdictions — confirm the pathway for your scheme with a qualified strata lawyer.