Subdivision

You might have come across the term "subdivision" or have seen the movie called subdivision and you are wondering....what is it?

Subdivision means to divide land into smaller lots. How many lots can be subdivided depends on a number of factors including: lot size, zoning, overlays, state regulations, and any requirements by the council.

Anybody can subdivide as long as they have a large enough block of land. A lot can be as small as 800m2 that could be subdivided into two smaller lots (the minimum lot size depends on your local council).

Local councils across Australia have for some time now seen a large increase in development applications of small suburban subdivisions where the developer is mum, dad and the children. The reason of this trend is that increasing value of land makes subdivision a very profitable and a safe venture.

Why would I subdivide my land?

Financial gains of subdivision can be very large and a person who subdivides land can potentially make $200,000 profit per new lot.

How do I know if I can subdivide my land?

You can check on wePlan.com.au, go to the section that represents your local council, have a look at the zoning map that covers your property, in the planning scheme check the minimum lot size for your property. There you can find if you can subdivide your land.

Otherwise you can contact your local council and ask them if your land can be subdivided. You can also contact your local town planner who can assist you in determining if your land has potential for subdivision.

I heard that I can subdivide my land, what do I do next?

Contact you local town planner who will help prepare a development application to council. If council approves your subdivision contact a local surveyor who will survey the property and make the new lots ready for government registration. Your local town planner will guide you through the whole subdivision process and can help in obtaining a surveyor.

Scenarios on types of subdivisions and profit estimates

For the following two scenarios we will assume that the minimum lot size for your local council is 400m2. For these scenarios an 800m2 lot has been chosen to be subdivided into two 400m2 lots. Please note that for the following scenarios we are using rectangular lots, however land of any shape can be subdivided and the new lot design does not need to be rectangular.

Scenario 1

In this scenario you can subdivide the land by creating two lots of 400m2 with a 10m frontage. The existing house will need to be demolished (make sure that you check if you are allowed to demolish the existing house).The result will be two long narrow lots that are capable of containing two houses.

Feasibility:

Figure1 - 800m2 lot into two 400m2 lots subdivision

Before After

Scenario 2

Purchase a property that is 800m2 on a corner block containing an existing house. In this scenario you can subdivide the land by creating two lots of 400m2 with a 12m frontage. Check if you can keep the existing house or move it to be wholly contained in the new lot. The result will be two 400m2 lots with a minimum of 12m frontage and one of the lots contains the existing house.

Feasibility:

Figure 2 - Subdivision of one 800m2 lot into two 400m2 lots

Before Subdivision

After Subdivision

Please note: This information is in its simplest form and should be used as a general guide only. All numbers and calculations are very general examples. These calculations are not accurate and are designed to provide you with an idea of what the costs and profits might be. This is not a legal document or advice. For detailed assessment of your property or advice you should consult your town planner or your local Council.