PROPERTY DEVELOPMENT

Does your block have subdivision potential?

February 28 2017

Quite often owners of large blocks might consider the possibility of splitting their land up into two of three blocks. But it’s not always that simple. Does your block have what it needs for subdivision potential?

There are no one size fits all with block sizes and the opportunities for subdivision. This is because each local council has their own regulations, rules and zoning of areas, which will affect the options available to your block. These may not always stay the same however, as councils may adjust their zoning regulations to allow for in-fill development when the local government sees fit.

In order for your block to be approved for subdivision, it will need to conform to the local town planning council’s minimum lot size. Some types of zoning will not allow subdivisions. The information needed to find out what the requirements are for your block will be available via each council’s town planning scheme. These are readily available on most local council websites.

Top factors in identifying your blocks subdivision potential

There are no hard and fast rules for identifying your properties subdivision potential, but here are some factors that can improve the possibilities for your block.

Is your property at least 700sqm in land size?

Local councils all have their own individual guidelines on the minimum land size required to subdivide, so be sure to check with their local planning scheme’s first, however properties larger than 700sqm generally have more potential to be subdivided.

Does your block have room for a driveway to service separate blocks?

If your block is going to be divided into numerous lots, you will need to ensure that there is enough room for a driveway to be installed to provide access to these additional dwellings. If your block is too narrow and bordered by other properties, it may not be feasible to subdivide due to access way restrictions.

Is your block level?

In most cases flat land is easier and cheaper to subdivide than a sloping block. A steeply sloping block will require retaining to be installed in order to flatten out each new block. Depending on where the retaining is needed, this may eat away at the usable land left available and result in block sizes that are under the required minimum. The cost of retaining is also very expensive and can easily erode any potential profit you could make from subdividing your block.

Do you understand the local zoning rules?

Before you even think about subdividing ensure you check with your local council that the property you want to subdivide complies with zoning rules.  For a guide to understanding the Residential Design codes, take a look at our whitepaper.

Understanding the property cycle

Subdivision can be a great way to potentially make a profit through property, however there are risks and the process is highly complex. Make sure you do your due diligence before subdividing and seek professional help to get your development application and project off the ground. Specialist development builders, such as Ventura iD, who are well versed in subdivision are a good place to start.

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