This page includes a breakdown of subdivision costs!
Why go for land subdivision?
A subdivided land will have its own registered title and a street address. This holds for every lot resulting from a land subdivision. The original land packages are often divided into two or more individual properties keeping capital gain tax (CGT) purposes in mind. When the owner of the subdivided blocks is retained, it will be a no-gain, no-loss situation for you during the land subdivision process. The selling of a subdivided block can result in a capital gain or loss. It is common to divide the cost in case of the original land into subdivision blocks on valid grounds.
By definition, the subdivision is the process of creating two or more number of land blocks (also known as 'lots') from the parent block. Each block thus obtained will have its own title.
What is a Dual Occupancy Subdivision? Here's what you must understand from it
The Frontyard/Backyard Subdivision Notion
The usual land subdivision is done by keeping the ownership of the existing home and building a new dual occupancy home in the available space (front yard/backyard or sides). The construction of a dual occupancy is subject to availability of space to accommodate and support the structure.
What is a Dual Occupancy Property?
In a dual occupancy property, a piece of land will retain its original title and will have two dwellings on it. Dual occupancy property is the process of constructing two or more properties on the same block of land.
How do I get my dual occupancy subdivision?
For a dual occupancy subdivision, a Town Planning Application has to be filed in the concerned local Council. The property must fulfil all necessary and recommended criteria before the Statement of Compliance is issued. The initial Planning Permit includes a connection to all necessary essential services. Once all stated conditions have been met successfully, the Council will issue the Statement of Compliance for the new land subdivision before the resulting lot(s) are registered with the Land Titles Office.
Note: Some local Councils may enter the Section 173 agreement. What is Section 173 agreement? Read on!
It is common for property developers to build the new dual occupancy with power supply, sewer, water and other essential connections and then have the property undergo land subdivision process to have registration for the newly added lot(s). Profit is often a result of selling the new lot(s) along with the new property in question.
Note that some property developers can choose to have all essential services running in the property and then decide to sell the new resulting lot(s) or may choose to enter the Section 173 Agreement (if it's applicable) as drafted by the Council lawyer (fees shall apply).
The responsible authority can negotiate an agreement with an owner of the land to set out conditions or restrictions on the use or development of the land or to achieve other planning objectives in relation to the land. These agreements are commonly known as section 173 agreements. The power to enter into the agreement arises under section 173 of the Planning and Environment Act 1987 (the Act).
Like other agreements, a section 173 agreement is a legal contract. However, the benefit of a section 173 agreement is that it can be recorded on the title to the land so that the owner’s obligations under the agreement bind future owners and occupiers of the land. A section 173 agreement can also be enforced in the same way as a permit condition or planning scheme.
The purpose of an agreement is to make it easier to achieve planning objectives for an area or particular parcel of land than is possible when relying on other statutory mechanisms.
All About Planning Requirements That Each Dwelling Must Satisfy (including the existing house)
Space availability of private open space (POS) at the side/front/rear of each dwelling made
Accessibility to the private open space from the dwelling's living area
Living room layout
Yard-parking isn't appreciated by the Council
Presence of turning circles and accommodating and safe driveway design
The overall energy efficiency of the property
If the property overshadows on the neighbourhood
Parking space availability: one car park space for a 2 bedroom property; two car park space for a property with 3 or more bedroom
How Much Does It Cost To Subdivide Land?
Land subdivision charges you must know!
Considering the costs of permits, application fees, the subdivision plans and professional consultant's fees for the subdividing process all amounts to a minimum of $35,000 for the land subdivision (counting front yard, side or backyard subdivision). These subdivision costs can vary depending on your land subdivision requirements.
The following fees must be borne to get your Statement of Compliance from the Council:
Installation Of Underground Drainage System: $18,000 – $23,000
Installation Of Underground Electricity Connection: $550 - $3,000
Installation Of New Paling Fence: $1,500
Contribution Fee To The Sewer And Water Provider (e.g. Yarra Valley Water, Western Water, South East Water): $1,600 - $2,500
For Widening The Crossover To A Double Width For The Site: $2,500 (for the construction of a new driveway and a new crossover, you must get in touch with a concreter)
For Built Carport Extension For The Current Home: $10,000
Quote from tree removalists to eradicate tree plantation from your front yard/backyard/sides
What is meant by (ultimate) development site?
Aren't aware what an Ultimate Development Site is all about? We have it covered for you!
A building site that meets all the following characteristics successfully is termed as Ultimate Development Site (or the UDS):
The all-inclusive land site cost must equate to acceptable development margins
Width of the site should allow for at least two crossovers for it to be a high flex and accommodating development project
The property must meet the local Council's housing stock forecast
Presence of planning overlay burden is a strict no
Any planning overlays should not come across as restrictive
Adequate levelling must be present to reduce build costs effectively
Model property developments that carry some similarities to your plan in the same locality is appreciated
For a duplex site, it must have frontage greater than 16 metres. The back boundary of the property should face North direction to prevent overshadowing on neighbourhood lands
Essential infrastructures such as school, hospital and essential stores must be located at a convenient distance
Site orientation must not disturb nearby developments
Title of the property must be restriction-free and must be without any type of easements - check Covenants or Section 173 agreements on title
No vegetation should be present within 5 metres of the shared boundaries
Land zoning must not be constrained
A soil test must be performed to determine the strength of the soil the property is being developed on
The adjoining allotments or the title boundary must be free of any encroachments
Adequate north-facing open space must be present for recreation purposes from the perspective of site length and area
Worried about how your property will fulfil all the above-stated criteria?
Best Town Planner has been a property subdivision expert for ages in Melbourne. We help you attain all required permissions for development projects. Our team of professional architects and designers craft tactful strategies to ensure that your property has higher chances of getting Council approval.
As professionals who are well aware of all that goes into property subdivision, we always ensure to put our best foot forward with the right plans, project development proposals and subdivision consultations. We ensure that your property gets subdivided hassle-free and puts you in a position to make sound business decisions.