Subdividing your block: What you need to know

Important factors to consider before you start a subdivision

If you own a significant piece of land, subdividing can be a lucrative option. Building new dwellings on subdivided land can create a new income stream in the form of rent. Alternatively, you can sell one or more dwellings to make a profit. While there are many great reasons to subdivide, there are several important things to consider before you commit.

The first step is to determine if the project is feasible. Not all blocks are suitable for subdivision, so it’s essential to do your homework before you make plans for an existing block or purchase a new one. The best way to do this is to seek expert advice from an experienced builder.

If you choose a builder that specialises in multi-unit development, they will be able to guide you through the possibilities for your site. They will consider factors such as the location, size, slope and shape of your block, as well as the location of street trees and services (sewer lines, water and power etc) to answer important questions, like:

  • How many dwellings can be built on your site?
  • Which design options will suit your site?
  • Is there a demand for your proposed type of dwelling?
  • How much will a subdivision cost?
  • Will a subdivision be profitable?
  • Are there covenants on your land title?

Most importantly, a reputable builder will be familiar with Council zoning rules in your municipality. The rules and regulations about subdividing land vary between Councils. These rules will ultimately dictate what you can – or can’t – build on your site.

Employing a professional multi-unit development builder who knows your Council’s zoning rules will provide you with peace of mind – and help you avoid potential pitfalls that could cost you time and money. Once zoning is known, your builder can obtain planning approval on your behalf. This will minimise the risk of delays caused by incorrect paperwork.

When to engage a multi-unit developer for your subdivision

If you’re planning to purchase a block for the specific purpose of subdividing, it’s critical to seek expert advice before you buy. That last thing you want is to invest in a block that’s not fit for the intended purpose. If you already own a parcel of land, engage a multi-unit developer before you begin serious planning. By knowing your options early on, you’ll be better placed to plan and execute a successful subdivision.

Subdividing in Melbourne’s east?

Costas Constructions has been helping clients subdivide in Melbourne’s east since 1998. We have strong connections with local councils, plus an in-depth knowledge of zoning regulations for our key services areas.

Manningham City Council
Booroondara City Council
Whitehorse City Council
Maroondah City Council
Monash City Council
Knox City Council

Get in touch to talk to us about your subdivision project.