What are the subdivision costs in Australia?
13 July 2018
Subdivision costs in Australia vary slightly from state to state. The greatest variations in these costs will be state specific planning and application fees, contributions and fees to local governments and councils, and utility provider access costs. The nature of subdivision site works will generally be similar in most Australian states. Some local council’s in Australia are no longer supporting subdivision applications for staged development (production of land only). They may support developments only where complete dwellings are built or require covenants to be placed on the title, dictating what the future purchaser must build on the site. This can have significant cost implications for bringing your subdivision to completion.
Subdivision costs in WA
The cost of a subdivision project in WA will vary dependent on the size and type of subdivision being performed. All, however, will have subdivision costs associated with the following:
§ Surveying, town planning and project management fees,
§ WAPC and Landgate fees,
§ Contributions to utility providers (electricity, water etc) and local council,
§ R-code compliance upgrades to any retained dwellings or demolition,
§ Civil or geotechnical engineering design costs,
§ Subdivision site works, inclusive of earthworks, retaining, drainage, fencing and access leg construction.
For an average two-lot subdivision with a retained dwelling in Perth, most investors would realise costs upwards of $50,000 to complete the project. Because of this, performing proper project feasibility is essential to ensure the development can be adequately funded and to guarantee a return on investment.
Multi-dwelling subdivision in WA
Subdivision costs in NSW
The main costs involved are the development application costs, constructions costs, infrastructure contributions and plan sealing charges. Minimum costs for even a minor subdivision can start around $50,000. So while subdivision is one strategy that is great for quick equity gains, it’s also risky and highly complex. You should always do two things to reduce risk. Firstly, spend time doing feasibility studies for your subdivision project. Perform some due diligence and upfront planning to gather as much information as possible about your site before beginning. Secondly, seek professional assistance to ensure your project is planned, executed and managed properly. This will ensure a hassle-free subdivision experience with a healthy profit at the other end.
Subdivision costs in QLD
In Queensland, the cost to subdivide land can vary greatly depending on the size of the subdivision, constraints of the site, planning scheme overlays and the location of the existing infrastructure. As a general ballpark figure for a one into two lot subdivision in Brisbane, the entire process will cost roughly $60,000 – $90,000, which includes infrastructure charges (currently set at just over $28,000 per additional lot), town planner/surveyor/civil engineer fees, council fees, civil construction costs etc. This is a general guide only and the costs will vary for each site, with every subdivision project requiring a detailed financial analysis and feasibility assessment.
Auchenflower -small lot subdivision in Qld
Subdivision costs in Victoria
The cost to subdivide land in Victoria is variable and dependent on the number of lots created, whether there is common property, construction requirements for access and services, and whether a subdivision is undertaken subsequent to the completion of building works. For a subdivision of land only in a typical dual-occupancy scenario (without common property) the total cost of completing a subdivision would be in the range of $30,000 to $50,000. This would include professional fees for planning and surveying, authority contributions, and the provision of access and services so that any new lot created has the capability of connecting to all essential services. These include electricity, water supply, drainage, sewerage and telecommunications. Subdivisions in excess of two lots are likely to attract a requirement for a contribution of cash to go towards the creation or embellishment of open space – this can vary but is typically 5% of the site value of the land.
For all general subdivision enquiries and assistance getting your project underway, contact the respective professional in your state for some expert advice today.
Liam ph. 07 3368 2211