What Is Property Subdivision? Types, Process & Land Development Explained
- Swarup Dutta
- Jul 21
- 2 min read
Property subdivision is the legal process of dividing a piece of land into smaller lots that each receive their own title. This is a common and powerful strategy in Australian real estate to increase property value, create new homes, or unlock development potential.
What Is Property Subdivision?
Definition
Property subdivision splits a single title of land into two or more individual lots, each with its own legal title. These lots can then be sold, developed, or held separately.
Why Subdivide?
Increase land value
Sell part of your land
Create space for more dwellings
Meet council housing density goals
Boost your property's investment potential
Types of Subdivision in Victoria
Torrens Title Subdivision
Also called “fee simple”
Completely independent lots
No shared property or infrastructure
Strata Title
Strata involves shared areas like driveways and common gardens
Battle-Axe Subdivision
Rear lot with access via a long driveway (the “handle”)
Ideal for deep blocks in residential areas
Development Subdivision
Larger subdivisions for estates, townhouses, or mixed-use
Typically involves rezoning and extensive planning
The Property Subdivision Process (Step-by-Step)
Step 1: Check Zoning and Feasibility
Review local planning rules, overlays, and site constraints. This step ensures your project aligns with council requirements.
Step 2: Design and Planning
Work with a surveyor or planner to create subdivision plans. Submit these to your local council for assessment.
Step 3: Development Approval
Council assesses the proposal, may request changes, and will issue a planning permit if approved.
Step 4: Construction and Infrastructure
Install services: roads, drainage, sewer, power, and water. These must meet council and utility standards.
Step 5: Title Registration
Once everything complies, new land titles are registered through the titles office and lots are legally separated.
Key Considerations Before You Subdivide
Minimum lot sizes (if applicable)
Building envelope requirements
Environmental, heritage and other planning overlays
Costs & Timeframe
Timeframe: 6–12 months (for a basic 2-lot subdivision)
Costs include council fees, surveying, infrastructure, and legal documentation
Budget around $50K+ for professional fees and utility connections to each new lot
Market Viability
Ensure your subdivision project aligns with current demand, price expectations, and development feasibility.
Frequently Asked Questions
What’s the Difference Between Torrens and Strata Title?
Torrens: Fully separate land ownership
Strata: Individual units share land or infrastructure
How Long Does It Take to Subdivide?
Typically 6 to 18 months depending on council responsiveness, approvals, and site readiness.
Can I Subdivide Without Building?
Yes. You can subdivide land and hold or sell it without immediately developing the new lot (land subdivision is one option).
Is Subdivision Profitable?
Final Thoughts: Should You Subdivide Your Property?
Land subdivision is a powerful tool for unlocking the hidden value in your property. Whether you’re increasing density for investment, downsizing, or developing new housing, a well-planned subdivision can deliver significant returns.
Be sure to:
Start with a feasibility study
Engage professionals (planner, surveyor, architect)
Review local planning controls
Budget for costs and timelines
Get Started Today
Ready to subdivide? Speak with a Swarup - he is a Registered planner - to begin assessing your property's potential. Now is the perfect time to explore subdivision options—especially with recent planning reforms aimed at boosting housing supply.
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