Property Subdivision Explained

Because Property Subdivision is so common everywhere, we thought it would be valuable to explain what property subdivision is. Why it is in such demand. What its benefits are, and how you can take advantage of it.

A Brief History of Property Subdivision in Australia

When land in Australia was first subdivided, the English system was adopted. The standard lot size in the English system was 16 perches (404 m2) measuring 50 links (10 metres) wide, by 200 links (40 metres) deep.

Because early property development was without regulation, the size and shape of blocks were determined according to demand. The smallest inhabited lot in Australia was at Parramatta, Sydney, and was only 6 perches (25m2 )

Many properties in Australia have subsequently been Subdivided into multiples of the 16 perch allotment.Property_Subdivision_Made_Easy

Often Title deeds contain more than one 404 Sqm (16 Perch) block, and a simple separation of the title is required at the titles office.Other titles for 808 SqM block contain only one title, and a subdivision is required.

A 404 Sqm Block is typically a block that requires a Small Lot House Plan. Small Lot house design is often exempted from the housing code of Australia. It is regulated by codes enacted by local councils, such as the small lot code.

Why the Explosion of Small Property Subdivision Projects?

To create multiple pieces of land, or allotments, where only one previously existed.

State Governments  have forced developers of large suburban outer ring suburbs to contribute the lion’s share of infrastructure costs (transport, roads and utility services). Because of this, the cost of the traditionally sized suburban block has skyrocketed in recent decades.

The demographics within the Australian population has been changing too. the changing lifestyle trends too, means small lot homes have become more attractive as they become more affordable. This, and the convenience of a location make them a winning choice. Close to transport. Close to schools. With an inner city lifestyle.

How Does It Benefit The Typical New Home Buyer?

Because these new allotment are being created without the crippling financial contributions to the State Government. And because it creates an opportunity for smaller Mom and Dad investors to profit from dabbling in property subdivision. The housing capacity within existing suburbs is being increased significantly.

Suddenly, buying a fixer-upper home on a  larger inner city block is worth examining, because of its underlying property subdivision potential. This is particularly relevant for the first home buyer.

If property subdivision is not possible, secondary dwelling options can sometimes be possible.Dual_Occupancy_Secondary_Dwelling_Granny_Flat

Either way, the value of an existing property can be significantly enhanced if you find a way to increase its housing capacity.

How Do You Do It?

  • Work out your Property subdivision potential.
  • Obtain Councils permission to subdivide
  • Carry out the subdivision in accordance with the imposed conditions of the Development approval.(DA)
  • Pay the contribution fees to council.
  • Engage a surveyor to mark out the new boundaries & draw up a survey plan
  • Register the survey plan at the titles office where new titles are then issued.