Housing affordability is a major battleground in the upcoming NSW election, but one potential solution is being ignored, according to a strata property development specialist.
Warren Livesey (pictured above), is the founder of Buy Airspace, a company that creates rooftop residences and strata uplifts by helping owners fund building repairs and sustainability upgrades.
He said to tackle Sydney’s housing crisis, housing stock would have to increase significantly. This could be done through “airspace development”, which involves building new housing on top of existing apartment blocks.
“Sydney is in the grips of a housing supply crunch, with the NSW Government’s Intergenerational Report predicting the city needs an additional 1.7 million homes by 2060-2061 to meet demand based on current population projections,” Livesey said.
“This means over 40,000 new homes need to be built every year.”
Livesey said every suburb needed to pull its weight given the fact that Sydney’s housing supply cannot be increased.
“That’s because there is limited new land where homes can be built even if you ignore all the infrastructure and zoning constraints,” he said. “Airspace development is helping address London’s housing crisis and it has the potential to transform Sydney as well.”
Livesey said while you could go some way by hitting the target and replacing houses with apartment blocks in established suburbs, it would change the character of many areas forever and has the potential of receiving significant pushback from local communities.
“Both of those problems would be solved with airspace development or building new properties in the unused roof space in strata complexes,” he said.
“Airspace development wouldn’t just increase Sydney’s housing supply and put downward pressure on prices – it would also make it easier for owners to fund repairs and maintenance of their buildings.
“Strata owners who unlock the unused space in their buildings can generate up to $2 million in additional funds and this can either be put towards repairs and maintenance or paid out as profit for owners to spend as they like.”
Livesey said council approval was required for airspace development, with at least 75% of all strata owners agreeing before such a project could go ahead.
“I think both major parties need to talk about airspace development during this election as a potential solution to the housing affordability crisis,” he said.
“Right now, a lot of owners don’t know airspace development is an option and some councils are still coming to terms with the concept. Once the major parties put airspace development on the agenda, it will become front of mind for more owners and councils. That should stimulate more development activity and increase Sydney’s housing supply, which is the key to putting downward pressure on prices.”
Apartment developments on Australia’s east coast have been rising at record rates, leading to a gradual decline in wider building and construction worries.
In the Sydney suburb of Gladesville, a 1,650sqm site has been approved for 47 units, 533sqm of ground floor retail/commercial space and 85 car spaces.
CBRE property advisor Toby Silk said he expected the property would attract strong interest from industrial occupiers and developers alike.
“Gladesville is in Sydney’s heart and with a median house price of $2,480,000, the development presents a great opportunity to capture buyers whose budget doesn’t stretch this far,” Silk said.
“The site has been granted development approval for a brand-new residential project, meaning the project can proceed to construction once a construction certificate has been issued by the local council.”
In December, Sydney brokerage Shore Financial identified the suburbs with property markets most likely to experience price growth over the next six months.
The Shore Financial State of Sydney Report found there are suburbs performing well, despite the wider city’s property market being still in a downturn. Find out if your suburb made the list in the link above.
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