The 2 Subdivision Killers Every Property Developer Must Know

When it comes to maximizing property development yield, two “killers” consistently trip up even experienced developers. Ignoring them can drastically reduce the number of units you can fit on a site. Let’s break them down.

1. Garden Area Requirements

Victorian councils require a minimum garden or open space for new subdivisions. On large lots, this often comes out to around 35% of the site.

Why it matters:

• A 35% garden requirement can reduce the buildable area significantly.

• For large lots, this can mean losing space for one or more extra units—directly affecting your profitability.

Tip for developers:

• Always check the local planning scheme before purchasing.

• Consider smart landscaping solutions to satisfy garden requirements without eating too much into your buildable footprint.

  
  

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2. Canopy Tree Requirements

All Victorian councils also mandate the retention or planting of canopy trees, covering 10% of large sites (1000sqm and larger).

Why it matters:

• Even on lots 1sqm over the 1000 sqm, this 10% rule applies.

• For larger developments, canopy trees can reduce the number of units you can fit or require creative placement to avoid conflicts with buildings.

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Tip for developers:

• Early consultation with a landscape architect can help integrate trees into your design without sacrificing yield.

• Explore options for smaller native species or creative positioning to maintain compliance and appeal.

Key Takeaway

These two factors—garden areas and canopy trees—are non-negotiable in all councils but often underestimated. Proper planning early in the development process can increase your final yield.