The Phases of Land Subdivision

Posted on: 13 August 2019

Real estate is one of the most lucrative businesses in Australia. Land subdivision, in particular, provides individual citizens with an opportunity to profit from their parcels of land. Read the extract below to understand the various stages of land subdivision

Phase 1: Market Survey

The primary purpose of subdividing your land is to make a profit by selling smaller parcels of land. Since subdivision can be an expensive process, you need to be sure that the exercise will yield profit. Consult a land development consultant or a real estate agent to conduct a market survey. 

Some of your primary concerns should include the following:

  • What are the costs of subdividing your land?
  • What is the value of property in your area?
  • What is the demand for undeveloped land? Which seasons have the most demand?
  • What kind of developments are most suitable? What are the profit margins?

Phase 2: Planning the Subdivision

Once you are confident that subdivision is viable, visit the local council's lands offices with a subdivision plan. The subdivision plan should include your plot number, its dimensions and how you intend to subdivide the land. The lands officer will evaluate zoning regulations in your area to determine the appropriate plot size and the amenities you should have on the plot. Further, he or she will inform you of the various permits and licences you need to subdivide the land. 

Phase 3: Execution

Find a licenced and qualified lands surveyor to conduct the subdivision. The professional will erect beacons to mark the boundaries of the various plots. He or she will also allocate space for amenities such as roads to ensure buyers can access their plots.

Hire a contractor to build access roads to the various plots. To increase the value of the property, use asphalt, aggregate, concrete or interlocking pavers to construct the access roads. Each of the parcels should have access to basic amenities such as water and electricity.

Phase 4: Sale and Development

Once the subdivision is complete, ask your real estate agent to put the plots on the market. Some people opt to sell a few plots and use the proceeds to develop the rest of the property. If that is the case, you will need to consult with your contractor to determine how much the project will cost. If you have inadequate capital, you could partner with a developer, sell some of the houses off-plan or take out a low-interest construction loan. 

Market research is the best way to ascertain the profitability of a land subdivision. Engage a reputable real estate agent, surveyor and contractor to help you subdivide your land. 


How to Construct a House

Hello, my name is Lisa and this is my blog. I live in Perth, Australia and for the past two years, I have been working on my home to improve it. My husband works away a lot, so the upkeep of the family home is completely in my hands. At first, I didn't have a clue what I was doing. Thankfully, my brother works as a contractor and knows about electrical wiring, plumbing and general construction. He gave me some great advice so I decided to start this blog so I could pass on his wisdom to others. I hope you enjoy my blog.

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