Can WA strata schemes capitalise on their airspace?
Across Australia’s east coast, a quiet property trend has been making noise in development circles – the sale of airspace above existing apartment buildings. In cities like Sydney and Melbourne, developers are buying the “rights to the sky” above strata complexes and turning unused rooftops into new penthouse apartments.
At first glance, it sounds like a win-win. Strata owners could unlock new value from an otherwise idle space, while developers gain access to prime sites without demolishing existing homes. But as talk of “selling the sky” spreads west, many in Western Australia are asking – could that ever happen here?
What’s happening on the east coast
Developers in New South Wales and Victoria are increasingly partnering with strata companies to build new dwellings on top of older apartment blocks. CBRE recently estimated that as many as 250,000 new homes could be created nationwide through “airspace development.”
These projects often see a developer purchasing or leasing the rights to the rooftop area, then constructing one or more new lots above the existing building. The existing strata company receives a share of the profits or a lump sum, which can be used for major upgrades like lifts, façades, or solar installations.
However, the process is far from simple. In the eastern states, these arrangements require majority or special resolutions by owners, council planning approvals, new subdivision plans, and updated by-laws outlining who maintains the new rooftop structure. Even where laws enable the concept, the logistics and the relationships between owners can be complex.
What selling airspace actually means
When people talk about “selling the air above a building,” what they’re really talking about is creating a new lot above an existing strata scheme. In property law, ownership extends vertically, meaning the “airspace” above a lot is part of the property. But in most apartment buildings, that airspace sits within common property owned collectively by all owners.
To “sell” it, the strata company must effectively subdivide the airspace or transfer development rights. This involves:
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Engaging surveyors to define new vertical boundaries above the building
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Seeking planning approval for new dwellings
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Registering an amended or replacement strata plan
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Passing the necessary owner resolutions and amending by-laws to define maintenance and access responsibilities
In practice, it’s closer to a mini-redevelopment than a simple sale.
Could this happen in WA?
Western Australia’s legislation does not prohibit airspace development but it sets a much higher bar for approval. Under the Strata Titles Act 1985 (WA) and Planning and Development Act 2005 (WA), any subdivision of land (including airspace) requires Western Australian Planning Commission (WAPC) approval, followed by registration of an amended strata plan at Landgate.
Because the air above a building is typically common property, owners would also need to pass a special or unanimous resolution, depending on the structure of the scheme. New by-laws would need to clearly assign responsibilities for structural integrity, future maintenance, and insurance between the existing lots and the new ones above.
In short, the idea isn’t impossible but it’s a multi-step process involving planning approvals, surveys, legal work, and a high level of owner cooperation. It’s also unlikely to be viable for every building. Many WA complexes have height restrictions, structural limitations, or building codes that make additional storeys unfeasible without major upgrades.
What are the benefits?
The potential upside is attractive. Selling airspace can provide strata owners with new funds to address long-deferred maintenance or upgrade works without increasing levies. It can also improve the overall value and amenity of the property, bringing new investment into established suburbs.
What are the risks?
Construction above occupied apartments is disruptive, requiring temporary closures of rooftop access and strict site management. Structural reinforcement may be needed to bear additional loads. Insurance coverage and warranties need careful review. And not all owners may agree on how the financial benefits are shared.
A practical path for WA strata companies
If your council is ever approached with a proposal to sell or develop rooftop space, treat it as a governance project, not a quick sale. The first step should always be feasibility advice from qualified engineers, planners, and legal professionals familiar with WA’s strata and planning laws.
Key early steps include:
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Confirming ownership and boundaries of the rooftop or airspace
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Assessing whether structural and zoning limits allow for additional dwellings
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Reviewing by-laws and voting thresholds required
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Consulting with owners early to gauge appetite and share information transparently
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Engaging a strata manager to coordinate communication and approvals
At ESM Strata we may be able to help you understand your legal and procedural obligations, connecting you with qualified specialists, and ensuring that all owners are informed before any major decisions are made.
Airspace development may be finding a place in WA’s urban landscape, but for now, it remains an emerging and complex concept. For most schemes, the focus should stay on maintaining and enhancing the community you already have and making informed decisions that protect the long-term value of your property.
