How Much Does It Cost to Subdivide Land in Australia (2024)

how much does it cost to subdivide land

Subdividing property can cost you $30,000 or more depending on where you live. 

However, if you are looking to do more with the property you own, the cost of subdividing it could be more than worth it. 

So, how much does it cost to subdivide land in your state, how does the process work and is this the right decision for you?

Our thorough guide has the answers and more.

What Does Subdividing Land Mean?

The process of subdividing land involves dividing one piece of property into two or more smaller lots. It can also involve reconfiguration of a piece of land, such as rearranging property boundaries or merging two lots into one. 

Whatever type of subdivision you are aiming to carry out, be aware that this is a lengthy process that requires a lot of planning and money. Also, keep in mind that each state has its own process and applicable fees, so you might pay less or more depending on where the property is located. 

On the plus side, you could divide a property into smaller lots and either sell them or use them for new constructions. Construction is a profitable industry in Australia, expected to see growth both in the residential and commercial sector

How Much Does It Cost to Subdivide Land in Australia?

Depending on which state in Australia the property you wish to divide is, the cost of subdivision can be anywhere from $30,000 to $90,000.

This typically involves the cost of surveying the land, fees payable to the local council and infrastructure contributions. 

You could also come across other expenses, such as house demolition costs, project manager fees, stormwater drainage design and installation and other construction-related costs. 

Here is a quick guide on subdivision costs in each state. 

1. How Much Does Subdivision Cost in NSW?

In this state, it will take you $50,000 minimum to cover:

  • The development application costs: from $665 plus extra fees per additional lot; 
  • Construction costs: $1,780- $5,100 per square metre; 
  • Developer infrastructure contributions: around $5,000 per dwelling.

Other costs include plan sealing charges and mandatory fees that must be paid to the council.

2. How Much Does Subdivision Cost in Queensland?

The cost of subdividing land in Queensland is around $60,000 to $90,000. Expenses typically include:

  • Infrastructure charges: approximately $28,000 per lot;
  • Town planning and approval: about $10,500;
  • Design and construction: $43,500-$58,500;
  • Plan sealing: $7,950.

There are also costs and charges that need to be paid to the local council, which vary for each site. 

3. How Much Does It Cost to Subdivide Land in Victoria?

If you are subdividing land in Victoria, you could expect to pay between $30,000 and $50,000, which includes:

  • Planning and surveying fees: roughly around $450; 
  • Authority contributions: usually 5% of the site value of the land;
  • Access and utility fees, such as electricity, drainage, sewage, telecommunications, and water supply connections: depend on location.

You could also be charged extra fees for the installation of an underground drainage system, fencing, tree removal or creating a carport extension, all of which could add up to around $43,000 to initial costs.

4. How Much Does Subdivision Cost in Western Australia?

Dividing land in WA could run you up from $50,000 to over $90,000.

This is what is included in the cost:

  • Town planning and surveying: from $7000 to $10,000;
  • WAPC and Landgate fees: from $3,350 (+GST, Lodgement of DP at Landgate, Clearance fees and WAPC Endorsement Fees);
  • Utility fees: from $2,500 for sewage, $6,500 per lot for water supply and $4,000 to $5,000 for power supply;
  • Demolition costs: around 20k
  • Subdivision site works: depend upon the chosen contractor.

5. How Much Does Subdivision Cost in SA?

The costs to divide land in South Australia could be between $30,000 and $35,000. This includes:

  • Unley Conveyancing and lodgment of documents with the Land Titles Office: around ​​$7,000;
  • A licenced surveyor: between $90 and $170 per hour;
  • A building designer: around 3-5% of the build costs;
  • Demolition costs: around ​​$52/m2

You will also need to pay to connect to water, sewage and power. There are extra fees involved as well, depending on whether the lot is located in the Adelaide metro area or country area or whether you are dividing the site into two lots or more (more than two lots could increase prices substantially)

How to Cover the Cost of Subdividing Land?

Since subdivision costs can easily add up, you might be forced to take a loan to cover all the expenses. Luckily, most lenders will provide you with subdivision loans

You will get varying interesting rates and fees depending on the lender, so employ the same tactic you would when applying for a home loan

How much can you borrow?

The subdivision loan can either be calculated judging by the estimated total development costs, i.e. how much the entire process will cost, or the gross realisation value, i.e. the value of the entire project. 

Other financing options available to you include: 

  • Construction loans, geared toward people who wish to build a new home rather than purchase a house.
  • A line of credit home loan, a kind of ‘credit card for your house’
  • Investment home loan might be suitable if you plan to rent or sell the construction built on the subdivided lot.

How Does the Subdivision Process Work?

The subdivision process might be different across states in Australia, but it will likely include the following steps:

  1. Prepare a development application 
  2. Lodge it to the local council for approval
  3. The plan is approved after which you need to pay all the relevant fees
  4. Seal the plans after the council confirms that all the conditions have been met
  5. The plan is submitted for registration and new titles are issued

There are some different steps to follow in separate states.

In NSW, for example, the first step is determining whether it is actually possible to subdivide the land depending on zoning restrictions. Then you need to hire a land surveyor and town planner to prepare a survey of the land and a plan of subdivision, as well as make sure that the plan meets all the required standards. 

In Victoria, on the other hand, you might be required to consult with surrounding neighbours or other stakeholders before the plan is approved. 

The whole subdivision process can be hard to navigate on your own. It would be helpful if you get professional advice from the local council on the exact steps that need to be taken. Legal counsel can also help you with any issues regarding the subdivision and make the whole process run more smoothly. 

Why Might You Want to Subdivide Land?

Here are some of the reasons why you might want to subdivide land:

1. You could create new lots.

Smaller lots of land are often easier to sell than larger ones. So if you have a large property, you might want to consider dividing it to increase its product marketability. This way you will have smaller lots of land which you could sell off more quickly if you ever run into financial instability, such as debt, unemployment or a medical condition. 

2. You could think about building new homes on the property once it is divided. 

You could either use these for residential purposes or as investments. Investing in property is a huge business in Australia and if you have a large lot of land, this is an excellent option to consider. 

3. Downsizing. 

By moving into a smaller lot you could offset the cost or make some money by selling off the land you are not using anymore. 

Is Subdividing Land the Right Choice for Me?

There are some risks involved, though.

1. When you subdivide one plot of land into smaller lots, the value of the smaller blocks of land might be lower than the original plot. House prices may have gone up considerably, however; you can’t bank on this as a guarantee that you will sell the lots at a higher price. 

2. Subdividing the property, including surveying the land, making applications and getting approved may take a long time

3. You might come across unexpected costs or issues with the land surveyor or other professionals hired to work on the subdivision process. 

4. When you subdivide land, each lot is registered as the new property, so when you sell it you might be liable for Capital Gains Tax

How to pay less tax in Australia? Here are 11 helpful tips

Wrapping Up

As mentioned above, the process of subdividing land can be quite complex. That’s why seeking legal help or contacting your local council would be more than helpful. 

They will be able to provide you with more information, so instead of wondering ‘how much does it cost to subdivide land in Australia’, you have all the facts and figures and plan your budget accordingly.

FAQs:

1. How do I find my boundary pegs?

Also known as “survey pegs” or “lot pegs”, boundary pegs are located on the perimeter of your property to mark the land’s boundary. Finding your boundary pegs is one of the first steps to take when subdividing land in Australia as misplaced boundary pegs can cause serious discrepancies and even legal issues once the land is subdivided. 

2. How much does it cost to subdivide land in New Zealand?

Even though people wishing to divide property in New Zealand pay for the same expenses as Australian residents, the answer to the question ‘how much does it cost to subdivide land in NZ’ is drastically different.  Subdividing land into two lots in New Zealand can come out to NZD$120,000 – NZD$150,000 (around AUD$108,500 – $165,678), which is much higher than subdivision costs in Australia. 

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