What does Property Subdivision mean?
In real estate terms a subdivision means creating two or more lots (parcels of land) from one lot (or parcel of land). The one lot is the parent.
In the image shown, we created two lots from the one corner lot.
How much does a backyard subdivision cost?
As a very rough guide your backyard subdivision costs in Victoria will be around $50,000 plus. That fee will include but not limited to applying for Council approvals, drawing up the lots, writing the planning report, connecting all services to the new lot and fees to statutory authorities. The bulk of the cost will be on meeting Council Subdivision Permit costs. Council will require all services be connected to each lot ( like sewer, water, power, NBN, drainage etc). Services Connection points play a role in your costs.
Backyard subdivisions typically are Strata Title with a shared driveway.
What are Subdivision costs for larger lots
In larger parcels of land, where your subdivision will include proper named roads, nature strips, footpaths, kerb drainage, street lighting ( like you would see in a typical street) subdivision costs could be around the $150,000 + per lot. Cost variations will depend on civil construction costs to an extent.
These type of subdivisions are Torrens Titled with each lot serviced by a road.
What is the minimum lot size in Victoria?
In Victoria there is no minimum lot size unless specified in the Planning Scheme. Generally speaking suburban lots are above 200 sqm per lot as long as the new home on a new lot can meet all the requirements of Rescode, which is the main planning control.
Swarup our Principal was involved with creating lots of around 70sqm just outside Melbourne CBD.
Want more help with your project? Contact us for a no obligation high level advice.
Contact me and I will - at no cost to you -check for covenant on your title and give you a HIGH LEVEL opinion on the development potential of your land. Can you subdivide the land?
I will need to see the full title documents which are found in the Section 32 of your Contract of Sale.
Can you subdivide my house?
This is the question we get asked every day. So you are no alone!
Firstly, can you afford the subdivision cost of around $50,000? Banks don't lend on this. You will need to raise funds through say an equity loan, line of Credit, Personal loan and so on. Or you may have saved up the amount. Ask your mortgage broker for his advice.
Secondly, will the subdivision stack up as a profitable venture? See what is selling closeby and how much was the land sold for and do your feasibility numbers?
Next 10 steps to the backyard subdivision are:
Check if there are there any restriction on subdividing your land- like is a Single Dwelling Covenant on the title? Is there Section 172 agreement with such an restriction. New estates usually have some binding agreement. Contact me and I will review your Section 32 document.
What is the zoning on the land? Most zoning allow a second or third dwelling to be built on a typical lot. Some Zoning with Planning overlays might have a MINIMUM lot size requirement.
What is the size and dimensions of the land? This is critical as each lot will have its own parking, Private open space of a specified size- even the existing house if it is retained. Council prefer parking and Open spaces be on the side or back of the dwellings- including the existing house. Both parking, shared driveway, Private open spaces chew up a large chunk of the land.
We design the proposed new dwellings ( units). They must satisfy the objectives of Rescode (see below) .
We draw up all the plans, elevations, shadow diagrams etc which must meet Council planning requirements- like setbacks from boundaries, overlooking onto neighbours lot, impact of shadows on neighbour amenities and so on. These are technical matters and needs careful attention.
We submit the Application for a planning Permit for the new house (unit) and a subdivision permit. You pay all Council fees.
The Application goes through the process like responding to Council Request for further Information (RFI), advertising, resolving objections if any. If all goes to plan the Permits are issued.
Great news! You have the Council permits. You now need to satisfy Council Permit conditions and connect services to each lot. Once done, Council issues a Statement of Compliance.
The Registered land surveyor draws up the Plan of Subdivision and this Plan and the Statement of Compliance is Lodged with the Titles Office with fees.
The Office issues the new Lots and you can sell these legally. The whole process can take 15 months and more.
What are the requirement of Rescode and other important policies?
The provision includes requirements that the application must be compliant with Rescode standards of the planning scheme and meet other specified criteria.
Two dwelling on a lot proposals as required by some councils.
The specified criteria are:
Maximum building height
The standard maximum building height requirements of the zone must be met. Within some Council Neighbourhood Residential Zone, the building height must not exceed 9 metres; and must contain no more than 2 storeys at any point.
Within some council the General Residential Zone, the building height must not exceed 11 metres; and must contain no more than 3 storeys at any point.
Minimum garden area
The standard mandatory minimum garden area requirement of the zone must be met.
Landscaping
The landscaping requirements within the Neighbourhood and General Residential Zones and relevant planning overlays must be met.
These requirements relate to canopy tree planting.
Site layout and building massing
All numerical standards relating to street setback, site coverage, permeability and width of accessways and car spaces must be met. These requirements ensure that development respects character of the neighbourhood and makes efficient use of the site.
Amenity impacts
All numerical standards relating to side and rear setbacks, walls on boundaries, daylight to existing windows, solar access to existing north-facing habitable room windows, overshadowing of open space and overlooking must be met. These requirements ensure that the impacts of development on
adjoining land owners are not unreasonable.
On-site amenity and facilities
All numerical standards relating to internal views, daylight to new windows, private open space, solar access to open space, storage and front fences must be met. These requirements ensure that high quality living environments are created for those who will live in the dwellings.
Car parking
Numerical standards relating to the number of car parking spaces must be met. In addition, requirements have been included to reduce the dominance of crossovers and car parking from the street.
These requirements are consistent with Council’s case study analysis and relevant VCAT decisions and are particularly applicable to side by side dual occupancies. These requirements ensure the retention of street trees, adequate space for front garden landscaping and retention of on street car parking spaces.
Livable (accessible) housing
All new dwellings must achieve Silver Level of performance under the Livable Housing Australia, Livable Housing Design Guidelines.
This requirement is consistent with objectives to increase the
supply of housing that is visitable and adaptable to sectors of the community with altered mobility. The specification of Silver standard performance gives greater clarity of accessibility requirements to deliver outcomes that improve upon those currently being delivered by the planning scheme provisions.
Environmental sustainability
All new dwellings in some councils must achieve a minimum Built Environment Sustainability Scorecard (BESS) score of 50%, including achieving the mandatory minimum score paths for water, energy, storm water and indoor environmental quality. This requirement will ensure that the outcomes will be of high quality
and that the requirements of the Environmentally Sustainable Development local policy will be met in every application.
The seven core design elements in the LHA Silver Level are:
A safe continuous and step free path of travel from the street entrance and / or parking area to a dwelling entrance that is level.
At least one, level (step-free) entrance into the dwelling.
Internal doors and corridors that facilitate comfortable and unimpeded movement between spaces.
A toilet on the ground (or entry) level that provides easy access.
A bathroom that contains a hobless shower recess.
Reinforced walls around the toilet, shower and bath to support the safe installation of grabrails at a later date.
Stairways are designed to reduce the likelihood of injury and also enable future adaptation.
extracted from Merri-Bek Amendment
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