About heritage floor space
The heritage floor space scheme provides an incentive for the conservation and ongoing maintenance of heritage items in central Sydney by allowing owners of heritage buildings to sell unused development potential from their site, known as heritage floor space.
When a heritage item owner completes conservation works they may be awarded HFS by the City of Sydney. The awarded HFS can then be sold to a site that requires it as part of an approved development application. The money raised offsets the cost of conserving the heritage item.
How the scheme works
The HFS scheme applies only in central Sydney. A heritage item owner may apply to be awarded HFS when seeking approval for conservation works, or as part of a development that includes the land occupied by the heritage item. The granting of such an award creates HFS supply.
Developments can only achieve certain development potential if HFS is transferred or allocated from the pool of awarded HFS. The requirement to allocate HFS to a development site creates HFS demand.
Selling or transferring HFS is a private transaction between the owner and the prospective buyer – the City acts as the scheme administrator. The cost of legal agreements, transactions and other documentation associated with the award and allocation, or change of HFS ownership is met by the owner and prospective buyer.
The scheme is established by the planning controls in the Sydney Local Environmental Plan 2012 (clauses 6.10 and 6.11) and the Sydney Development Control Plan 2012 (section 5.1.9) details how HFS is awarded and allocated.
The price of HFS
The purchase price of any HFS is determined between the owner and the prospective buyer and depends on quantum and market conditions. At the end of December 2015 the purchase price was approximately $615 per square metre.
Please note: It is the prospective buyer's responsibility to contact the HFS owner to negotiate the purchase price.
Allocating HFS has more information about HFS owners and purchase prices from recent sales.
Last updated: Thursday, 24 March 2016