If you’re considering a 2-lot subdivision of your residential property, understanding the costs involved is essential for making an informed decision.
Subdivision costs can vary depending on a range of factors, including consultant choice, site location, infrastructure requirements, and local council regulations. In this article, we’ll break down the general expenses you might encounter, so you can better prepare for what’s ahead and ensure your project runs smoothly.
Prior-to-Subdivision Costs
Before you subdivide a residential property in Victoria, you will first need to have designed building plans approved by your local council.
These building plans demonstrate to council that a residential building can fit in the designated land for subdivision. For most suburban areas, council will not allow the subdivision process to occur without approved plans for a residential dwelling on the site. As we will explain in the next stage, you do not necessarily need to complete the build process to move ahead with the subdivision of your land.
If you have yet to have designed building plans drawn and approved by council, you will need to consider the following expenses:
- Architectural & Design Fees: you will need to engage a design consultant, most likely an architect, to draft plans for a residential building on the area to be subdivided. These fees will vary from consultant to consultant, so it is best to request a few quotes to compare.
- Land Surveyor Fees: your design team may request a Title Re-establishment and Feature & Level Survey of the site be completed by a land surveyor. This survey provides the design consultant with accurate data to guarantee that their design can fit on site.
Tip – The team at Linear Land Surveying are highly experienced in providing these surveys and can help with a quote today. Be mindful that only licensed land surveyors (like our team) can provide a Title Re-establishment survey.
- Council Fees: Once the designed building plans are drawn, you will need to submit these to council for approval. Council will issue a Planning Permit for development. Council fees for a Planning Permit can vary from council to council so it is best to check with your local council for an estimate of what these might be.
Subdivision Costs
Once your building plans have been approved by council, you can now begin the subdivision process by engaging a Licensed Land Surveyor.
A Licensed Land Surveyor will guide you through the subdivision process. The costs of this process can include:
Licensed Land Surveyor Fees
A Licensed Land Surveyor is the only professional consultant who can subdivide land in Victoria. They will guide you through the process, prepare the Plan of Subdivision, conduct the relevant field work, and manage your subdivision’s documents and permits with council. The fees for land subdivision management can vary from licensed surveyor to licensed surveyor, however, you should expect this to be one of the larger expenses incurred during the process (aside from any construction expenses), as the surveyor will guide your subdivision for 6-12 months.
Council Fees
For your subdivision to commence, your land surveyor will apply for a Council Planning Permit to Subdivide on your behalf (different from the Permit acquired in the ‘prior-to-subdivision’ section). These fees can vary depending on the following:
You are choosing to construct the approved dwelling onsite:
- If construction has commenced onsite and you can provide council with adequate proof (discuss with your surveyor what proof is required), you can apply for the subsidised VICSmart Application for approximately $413.20 (at time of writing). This fee also includes the cost of council’s Certification of the Plan of Subdivision which occurs at the end of the subdivision process.
- If you have not commenced construction, the full council fee for a subdivision Planning Permit is $1,646.10 (also including council’s Certification of the Plan of Subdivision).
Tip – If you are planning to construct the dwelling, you can begin the build process as soon as the Planning Permit from above has been issued by council. The subdivision process can take place alongside the construction process.
You are choosing not to construct the approved dwelling onsite, but would like to proceed with the subdivision of the land:
- You will need to pay for a Planning Permit for Subdivision. As you are not constructing your dwelling, the full fee of $1,646.10 will be required by council. Furthermore, you will also need to apply and pay for a Section 173 Agreement which will allow your subdivision to proceed without the construction of the dwelling. The fee for this agreement can range across councils.
Unexpected council or Local Service Authority Expenses
Once council has issued a Planning Permit to Subdivide, you will be issued a list of conditions that must be met onsite before the subdivision can be finalised (i.e. a Statement of Compliance and Certification of the Plan of Subdivision is obtained). Meeting these conditions may incur further costs on top of those budgeted for in the construction of your residential building. If you are choosing not to build the approved dwelling, you may face a more limited list of conditions.
Solicitor or Conveyancer Fees
Once council has issued a Statement of Compliance and Certification of the Plan of Subdivision, your land surveyor will submit a final Plan of Subdivision to Land Use Victoria. Once this has been submitted you will require a conveyancer or solicitor to formally lodge these documents so that you can be issued with the separated titles for each lot of land.
In summary, completing a subdivision of your residential property can be an expensive, but ultimately highly rewarding process. With a complete understanding of the potential subdivision costs, you can avoid any unpleasant surprises and ensure your project is completed successfully.
The information on this website is intended to be general in nature and is not personalised land development advice. It does not consider your specific objectives, land development site or financial situation. Council fees listed are general indications of costs at time of writing and may be subject to change. Before acting on any information, you should consider the appropriateness of the information provided and seek more specific advice from the professional team at Linear Land Surveying.
