Subdividing your block: What you need to know

Important factors to consider before you start a townhouse or multi-unit subdivision.

If you own a substantial piece of land, you can generate short-term income and long-term wealth by subdividing your property. Building a townhouse or multi-unit development can provide you with regular income and capital growth. By constructing new dwellings you can generate rental earnings from each occupied dwelling. When you sell the units, either immediately or decades down the track, you can also earn a substantial profit. Whatever your strategy, subdividing is an effective way to maximise the residential value of your land parcel.

In this article, we’ll equip you with a comprehensive understanding of the development phase. We’ll go over the fundamental steps involved and show you how to generate wealth. . With the right knowledge by your side, you will feel empowered and gain the confidence you need to successfully achieve your financial goals.

The following information is presented in actionable steps to help you make the right moves. Remember, it’s always advisable to consult industry professionals before embarking on your venture.

What is a subdivision?

In Australia, subdividing land is a viable commercial option for some properties. When you subdivide a block of land, you are essentially dividing one block into numerous smaller blocks. There are many ways to do this, but in each scenario, each plot is given its own land title. A residential subdivision may build a second property adjacent to an existing house, or it can start with vacant land that is then split into multiple titles.

There are five types of subdivisions available in Australia:

  • Freehold subdivisions divide an existing block into two or more separate titles.
  • Strata subdivisions divide an existing block vertically into apartments or units, which include common areas.
  • Bare land strata subdivisions divide a vacant block vertically into apartments or units, which include common areas.
  • Battle-axe subdivisions divide a block that’s shaped like an axe, with a new home constructed at the rear of the property.
  • Development subdivisions divide a large plot of designated land into multiple residential or commercial titles.

What are the benefits of subdivision?

People subdivide and develop their property for many reasons, but most of the time, it’s about generating wealth of some kind. Once a development is complete you have the option of selling the completed townhouses or keeping them to rent out. party, or.

Regardless of your end goals, however, you need to put in some work first. Developing takes time, money, and lots of paperwork, so it’s essential to work with an experienced partner.

Initial considerations

While subdividing a block offers numerous benefits, it’s important to educate yourself before plunging into such a project. The potential for additional income or profit is a major driving factor, but you need to be careful about how you spend your money. Some of the questions you may be asking yourself include:


  • How do I embark on a townhouse development?
  • how do I develop my block successfully?
  • How long does it take to build townhouses?

Whether you’re buying a small block or a large estate, the answers to these questions can only come from an expert.

Research the property and determine its viability

Before diving into your development plans, it’s crucial to assess the feasibility of your project. You need to research the land, look into the neighbourhood, and analyse your prospective purchase with a fine-toothed comb. When done correctly, this step will save you time, money, and effort in the long run. Keep in mind that not all blocks are viable for subdivision. For this reason alone, conducting thorough research is essential before making plans or purchasing property assets.

At this stage of your project, seeking guidance from an experienced builder is highly recommended. An expert can help you determine the maximum number of units or townhouses that can be accommodated on your block, along with the ideal size of these parcels. By leveraging local knowledge and industry expertise, you can make informed decisions and optimize your investment from the outset.

Perform a site evaluation

Once you have purchased a suitable property, it’s time to plan your development. During these early stages, it’s important to assess the site’s location, size, slope, and shape. Everything needs to be considered, from the positioning of trees to the management of sewer lines, water, and other services. Along with doing your own research, it’s essential to connect with an expert builder. With someone trustworthy fighting in your corner, you can ensure a successful project.

A comprehensive evaluation is needed to address the following property issues:

  • Planning approval and timelines
  • Zoning restrictions
  • Design and materials
  • Supply and demand considerations
  • Building type and size limits
  • Costs and cash flow issues
  • Rent and sales forecasts
  • Profitability measures
  • Land covenants and restrictions
  • Development and management

Find an experienced builder

When looking for someone to build your development, it’s essential to choose a builder that specialises in multi-unit or townhouse developments. Not all builders have the same skills; a development  expert is able to help with relevant paperwork and planning permits throughout the construction phase. Local knowledge and relevant building experience are crucial during this process.

Zoning rules vary based on municipality, design guidelines need to balance cost with demand, and character requirements need to align with neighbourhood expectations. Understanding these issues is vital, as they dictate what you can or can’t build on your site. It’s recommended to conduct your own research early in the process so you get a solid foundation before you begin. Next, it’s important to access relevant expertise to ensure a successful and profitable development.

Hiring an experienced builder  p helps to ensure a hassle-free and cost-effective project. When you work with a proven professional, you can start your project faster, keep costs and timelines in check, and get the building completed fast without compromising quality. Experienced builders can streamline the planning approval process and minimise the risk of delays from incorrect paperwork or human error.

It’s important not to rush this process. The right builder can meet your expectations by aligning with your budget and timeline. While there are lots of qualified and experienced builders available for hire, it’s essential to carefully evaluate and select the right person for the job. By assembling a competent and dedicated team from the beginning, you can expect much smoother project execution. Don’t leave your project to chance. Partner with a knowledgeable and capable team to ensure a successful outcome.

Are you subdividing in Melbourne’s east?

Like most places in Australia, the city of Melbourne has local rules and regulations when it comes to subdivisions. If you’re planning any kind of subdivision, it’s important to connect with an experienced local team. We have completed many successful developments  across Melbourne, including many in the sprawling eastern suburbs. We have the skills and experience you need, including strong connections with local councils and a thorough working knowledge of local zoning regulations.

We work across Melbourne’s east, including areas like Boroondara, Kingston, Maroondah, Manningham, Monash, Whitehorse, Yarra Ranges, and Knox. From the inner eastern suburbs of Burwood and Camberwell to the outer suburbs of Croydon and Dandenong, we deliver exceptional results that meet the demands of your neighbourhood.

Don’t risk investing in a block that’s not fit for your intended purpose. Contact our team today to learn more.