Raising the roof to make billions and help the housing crisis

BUILDING homes on top of Australia’s capital city skylines could be worth billions, according to an entrepreneur.

Warren Livesey, who owns Buy Airspace, says strata owners could cash in on relaxed planning rules in higher rise apartment blocks.

The NSW Government’s Low and Mid Rise (LMR) Reforms gives developers and owners corporations a golden opportunity to quite literally raise the roof, he says.

Livesey, who is behind 77 rooftop conversions in Australia, mainly in Sydney’s Eastern Suburbs says: “Here in Australia, we only use two per cent of our existing rooftops.

“Yet we have some of the most expensive real estate and some of the best weather.

“It doesn’t make sense. In Europe they have developed nearly 70 per cent of their rooftops.”

In London, building up above apartment blocks and other structures satisfies 42 per cent of the city’s housing requirements.

And that’s worth an estimated £50 billion.

In Sydney the sector could be worth $150 billion, he says.

The property accountant, who saw the potential of airspace while selling it in Europe and the USA, said between 20-30 per cent of the current DAs lodged at Waverley Council are for rooftop conversions.  

“It has become very popular because we simply need more houses,” says Livesey, who estimates there are around 30 million square metres of unused roof space in Sydney’s urban areas that could be used for housing. 

Depending on where a building is located, owners can expect to command between $2,500 and $10,000 per square metre for their airspace, with the average strata rooftop measuring around 300sqm.

“The most common airspace development adds an extra one or two storeys to the existing building,” says Livesey.

“The alternative is to knock it down and rebuild and we can’t be knocking down and sending everything to the tip. 

“So airspace development is essentially trying to preserve our existing buildings but still add to density. It’s finding a sustainable way of building new homes.”

In NSW, legislation allows strata owners to sell airspace with 75% agreement of owners while Victoria requires unanimous consent or tribunal approval for similar projects.

 “Strata owners are asset rich and money poor and they need the finances to carry out the work,” added Livesey.

“The owners don’t put any money into the project and they are financially compensated for selling their airspace.

“So basically it’s a joint venture, where the owners don’t have the time, the experience or the money, and that’s what the developer provides, the time, the experience and the money.”

“The Property Council of Australia remains dedicated to championing innovative solutions like airspace development and modular housing,” the council said earlier this year.

Read the full article in the latest monthly edition of Australian Conveyancer here