Decision guide
Sell the airspace, or retain and develop it?
The same roof can fund a remediation program tomorrow or build long-term value. Here is how the two paths differ.
| Sell the airspace | Retain and develop | |
|---|---|---|
| Proceeds | Lump sum on settlement of the airspace lot | Value realised on completion or held as new lots |
| Delivery risk | Carried by the developer | Carried by the owners corporation |
| Funding required | None from owners | Construction funding or a development partner |
| Sinking fund impact | Immediate capital injection | Larger long-term uplift, later |
| Ongoing income | None beyond increased levy base | Rental income or sale of new lots |
| Levy effect | Levies spread across more lots after completion | Same, plus income offset |
| Complexity | One contract, one resolution | Development management, contracts, insurance, tax |
| Typical fit | Buildings needing remediation funding now | Well-capitalised schemes with an active committee |
Shared equity: the middle path
The owners corporation contributes the airspace instead of cash and takes an agreed share of the completed value. Owners avoid construction funding and delivery risk while keeping upside above a hurdle. Terms are documented before the resolution goes to the general meeting.
What usually decides it
Whether the scheme has an urgent capital need, whether the committee has the appetite to act as a developer, and the tax and GST position of the scheme. Get accounting and strata legal advice on both structures before choosing.
General information only — not financial, tax or legal advice.