If you’re a Victorian land owner and have ever pondered the query of “can I subdivide my property” – although at times complex, it’s not impossible.
By definition, subdivision in the world of real estate is the act of dividing land or property into smaller pieces that are usually deemed easier to sell or develop. For both entry level and experienced investors, subdividing a property can be a way to potentially increase the return on investment.
However, the process itself can be tricky, and generally requires a great deal of paperwork and due diligence in order to get it right. For those weighing up the pro’s and con’s of subdividing property in Victoria, it can be difficult to know where to start.
A Guide To Subdividing Property In Victoria
With Melbourne’s population now sitting at over five million people, property prices have soared in recent years thanks to increasing demand. As a result, land can be hard to come by, which in turn has led to a spike in subdivision developments.
Unfortunately, the answer to “can I subdivide my property in Victoria” isn’t as black and white as a simple yes or a no. There are many hoops that investors are required to jump through before a property subdivision can get the green light, most of which are linked to your local council’s regulations and restrictions that surround zoning.
All land is zoned for particular and designated uses, with residential areas in Melbourne and greater Victoria being zoned as one of the following:
- Neighbourhood Residential Zone (NRZ)
- General Residential Zone (GRZ)
- Residential Growth Zone (RGZ)
- Low Density Residential Zone (LDRZ)
Before you even think about subdividing your property, it’s important to check what zone the land is already classed as, which you can do so via Victorian Land Management property reports.
One of the biggest hurdles that investors looking to subdivide encounter is whether the land in question is actually deemed big enough to subdivide in the first place. The amount of space you need will depend on the zone, schedule and any overlays affecting the property.
The minimum garden requirement will also affect whether you can subdivide a parcel of land, and how many lots you can create. The requirement specifies the percentage of land that must be used as a garden area, which is a requirement designed to protect the character of a suburb and prohibit “over development” of a site or suburb.
The minimum garden area requirement applies to land in the Neighbourhood Residential Zone and General Residential Zone and must be met when constructing or extending a dwelling or a residential building, or subdividing land to create a vacant residential lot less than 400 square metres in area. An example of this is if you possess a 900m2 lot and intend on subdividing it into three units at 300m2 each, then each proposed new lot needs to embody at least 25% garden area in order for the subdivision to be approved.
Local council strategic planning policies, neighbourhood character guidelines and local planning preferences are all factors that will be taken into account by council when it comes to approving or denying your application for subdivision. If there have been recent approvals of subdivisions in your area already, then this sets a neighbourhood precedent. As a result, you are more likely to have your subdivision project approved if it’s similar to other developments in the immediate area.
If you’re wondering “can I subdivide my property in Victoria”, the key steps in getting your development off the ground generally include the following.
- Enlist a licensed land surveyor to prepare a plan of subdivision in accordance with the Subdivision Act and the Regulations. The surveyor of your choice will then apply for a planning permit for subdivision development via SPEAR. In theory, obtaining an approval at this stage ensures that the proposal complies with the Planning & Environment Act 1987, and in turn the local planning scheme. The planning permit will set the general conditions and associated restrictions for final approval of the subdivision.
- Submit the subdivision development plan to the council for the appropriate certification. Certification ensures the plan meets the Subdivision Act 1988, along with any permit requirements.
- If required, obtain any relevant approvals for any engineering plans and complete and required works.
- At this point, it’s then time to obtain a statement of compliance from the council. This is the final approval letter from the council, which should state that all the requirements for the subdivision have been met and adhered to.
- Lodge the certified plan at Land Use Victoria for registration, in conjunction with the statement of compliance and any other prescribed information. It’s at this point that any new land titles will be issued for each new lot created.
While the payoff of subdividing land can be potentially lucrative, it’s important not to underestimate the amount of paperwork involved, and the additional costs associated with finalising the process. In Victoria, it’s estimating that subdividing land can cost between $30, 000 and $50, 000 on average, depending on the size and location of your project.
This includes professional fees for surveying, and the provision of access so that any new lot is able to be connected to the essential services, such as electricity, water, drainage, sewerage and telecommunications. Needless to say, that subdividing land isn’t as simple as splitting a block in half and doubling your money. Make sure that you get it right the first time, and enlist the help of the professionals if there’s anything you aren’t quite sure on.
Take The Stress Out Of Real Estate
A completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
