Strata or Torrens Titled Subdivision: What’s Best for Your Residential Development in Victoria

Torrens Titled subdivision

Strata or Torrens Titled Subdivision: Choosing the Right Option for Your Development.

When planning a dual occupancy, duplex, townhouse, or low‑rise apartment project in Victoria, one crucial early decision is how to subdivide your land. The two main types — Strata and Torrens Title (Freehold) — affect ownership structure, design flexibility, and long‑term property value. Understanding these differences ensures your subdivision aligns with both planning requirements and your project’s financial goals.

Torrens Title Subdivision Explained

A Torrens Title subdivision creates individually owned lots, meaning each owner controls their land outright. There are no shared driveways or services, and each dwelling is fully independent.

Think of it as the "House and Land" project or a house in a suburban block facing a named road used by services like Waste Collection Trucks. The road has nature strips and streetlights.

This title type is ideal for:

Some Dual occupancies on corner sites with separate street frontages

Some Duplexes seeking independent ownership

Houses in a suburb

Benefits:

Full land ownership with no shared property

No owners corporation or annual fees

Generally stronger resale and mortgage appeal

However, Torrens developments must accommodate separate service connections, driveway widths, and private open space, which can reduce site yield compared to shared Strata sites.

For example, a Townhouse may require a 3m -6.4metre wide driveways. Whereas, a Torrens titled lot will be serviced by a road capable of taking heavy loads, has nature strips, kerb and gutter drainage, street lighting which cost a lot more than a townhouse driveway

Strata Title Subdivision Explained

A Strata Title subdivision allows dwellings to share common property such as driveways, shared gardens, or service connections. Each owner receives a unit title plus a shared interest in common areas managed by an Owners Corporation.

This approach suits:

• Medium‑density townhouse projects

• Small infill developments with one frontage

• Boutique low‑rise apartment buildings

Benefits:

• Maximises yield on smaller sites

• Shared maintenance of common areas

• Lower individual land cost for buyers

Keep in mind that Strata ownership means ongoing Owners Corporation management and fees. Buyers and investors typically factor this into their decision‑making.

How to Decide

The right title structure depends on your site layout, access, and market strategy:

Choose Torrens Title when you want independent dwellings or plan to sell to buyers seeking full ownership.

Choose Strata Title when optimising yield or managing challenges such as narrow frontage, shared access, or constrained services.

Local council overlays, minimum lot sizes, and garden area requirements in Victoria also influence which title type can be approved. Early advice from your town planner, surveyor, or subdivision consultant is essential to confirm feasibility.

SECRET TIP! Air Space Development: Unlocking Hidden Value!

In some low‑rise apartment or strata townhouse projects, the air space above the top floor can hold untapped development value. Subject to council, body corporate and building regulations, this air space can be retained, sold, or developed as an additional dwelling, rooftop terrace, or future vertical extension.

For owners of existing Strata developments, controlling this air space can significantly increase property value or project yield if redevelopment becomes viable later.

Expert Tip

Begin your feasibility analysis by modelling both title options. Sometimes, a Strata development yields one extra dwelling, even after allowing for common areas — significantly improving return on investment. On the other hand, Torrens lots may sell faster and at higher prices due to their independence.

Conclusion

Both Strata and Torrens Titled subdivisions play an important role in Victoria’s residential landscape. Your choice should balance site constraints, council policy, and market preferences. Working with a knowledgeable consultant can help identify the most profitable and compliant path forward for your project.