Your Ultimate Guide to Subdividing Property in 2025

Everything You Should Know Before Starting a Subdivision Project

With housing demand rising and property prices climbing, subdivision has become one of the most powerful wealth-building strategies in Australia (particularly in NSW, where new planning changes in 2025 have made it easier to achieve on smaller sections than previously allowed).

As property values can sometimes double in value with a subdivision, it is easy to understand why subdivisions are such a great investment. Still, this strategy must be approached strategically.

To help you, we have developed this comprehensive subdivision guide (backed by the Town Planners at Council Approval Group and Colin Fragar, our CEO) to answer your questions regarding subdivisions and to help you navigate the pathway to success.

Perhaps you own a property that can be subdivided, or are you looking at purchasing a property to invest in?

Whether you’re a homeowner looking to unlock equity or an investor aiming to multiply your returns, understanding the subdivision process and strategy in 2025 is essential for a successful outcome.

Before we proceed, please watch the video below, where our CEO, Colin Fragar, discusses subdivisions, why they are part of his favourite strategy, and why you should consider consulting with a Town Planner before diving into your project, especially if you want to achieve the best possible outcome.

If you are not quite sure about what the best subdivision strategy would be for your project? We would suggest you click below to book a free consult to get tailored advice for your needs. We will be able to assess the possibility of a subdivision and help guide you to adopt the best strategy to proceed. You will also be sent a digital copy of our magazine to help you navigate this journey.

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If you’re thinking about a subdivision, congratulations, that means you’re thinking about your financial future. It means that you’re serious about creating the future that you want – Colin Fragar

Summary (Key Takeaways)

Click the + on the right to read the full summary

A subdivision in Australia legally divides land into additional lots so they can be sold to more people
You can subdivide a property that has an existing home
Council Approval is required for a subdivision
Subdivision is a valuable investment strategy, helping to boost profits to meet the growing demand due to Australia’s rising population and the housing crisis
A subdivision approval could double the value of your property
- There are 3 different types of subdivisions:
  - Torrens Title
  - Strata Title
  - Community Title
There is a minimum lot size requirement for a subdivision, but sometimes this can be overcome
If planning to purchase a property and subdivide it, seeking advice before purchase is crucial
Choosing the best subdivision strategy depends on the budget, goals and the location of the development
The key benefits of a subdivision approval include:
- Increased Equity, Value and Profit
- Additional Income Streams
- Reduced Tax Incentives
- Optimised Land Use & Future Buyers
Whilst a subdivision can significantly add value, it is important to get it right to avoid these 3 common risks of a subdivision
- Council Rejection
- Unexpected Tax Implications
- Utility Delays
The subdivision approval process includes 6 steps
- A Site Feasibility Assessment
- Approval through Development Application or Complying Development Application
- installation of Sinfrastructure & Services
- A Subdivision Plan
- A Subdivision Certificate
- Title Registration
A subdivision can expire
You should consider engaging with the following professionals to help with your subdivision
- Town Planner
- Surveyor
- Civil Engineer
- Conveyancer or Property Lawyer
Understanding the challenges is crucial for success, we share some common cchallenges and tips to over come them
- Council Rejection or Delays
- Minimum Lot Size & Zoning Restriction
- Unexpected Infrastructure & Delays
- Utility Provider Delays
- Legal or Title Issues
- Tax Surprises
A subdivision ranges in cost depending on the complexity of the project
Getting the right advice from the start is crucial for success
Whilst a Subdivision is a great strategy to get ahead in 2025, getting the right advice and being prepared is key to success

What Is a Subdivision?

A subdivision in Australia is the process of dividing a single property into two or more separate lots, each with its legal title.

The new lots can be sold, developed, or held independently of each other. This process immediately increases the value of land and manufactures growth regardless of current market conditions.

A subdivision strategy is a key approach employed by property investors and developers to increase profits.

Example of a Subdivision Approval

A homeowner in NSW owns a 900m² R2-zoned block. With a minimum lot size of 450m², they apply for a two-lot torrens title subdivision. After approval, they build a dual occupancy; living in one and renting the other.

Colin Fragar loves this strategy:

A Dual Occupancy can literally be a game changer for you and your family, not only by adding in extra rental income but by adding significant net worth to your portfolio – Colin Fragar.

If you are considering a dual occupancy with your subdivision, we recommend reading our recent comprehensive guide to dual occupancies.

Can I Subdivide a Property with an Existing House on it?

Yes, if your land meets local zoning and minimum lot size requirements, you can often retain the existing house and subdivide the backyard. This is a common strategy for dual occupancy projects.

Do I Need Council Approval to Subdivide my Land?

Yes, you do need council approval to subdivide your land. As discussed, approval can be achieved either through a DA or a CDC. Approval largely depends on the property’s location and zoning requirements, but sometimes we also find loopholes to achieve subdivision where approval was not expected possible.

Is a Subdivision Worth It?

Yes, a subdivision is worth it, especially in 2025 when you consider the potential increase in profits made from one lot of land.

Ultimately, supply does not meet demand, and this is keeping property prices elevated.

Subdivisions in sought-after locations close to amenities remain in demand due to the housing crisis, and subdividing a property can increase the resale value of your property.

My experience is that if you can subdivide even a small property with a one-to-two lot subdivision, you’re literally looking at doubling the return, doubling the value of your property – Colin Fragar

Furthermore, a subdivision may enable a dual income, and subdivisions attract higher valuations from lenders.

Does a Subdivision Add Value to your Property?

Yes, a subdivision adds incredible value to a property, and subdivision approval could double the value of your property. Subdivisions add value to properties by creating smaller and more affordable lots, appealing to a larger segment of the market. Appealing to a larger segment increases demand for these properties, due to the ability to build more than one dwelling (lowering the purchase price for individual lots).

Types of Subdivisions in Australia?

In Australia, there are three different types of subdivisions:

Torrens title (the most common):

Torrens title means that the person registered is the legal owner of the land and any buildings on it. The land is secured through a registration process.

Strata title:

Strata titles are generally used for larger building complexes, such as townhouses and apartments. Strata titles are also known as “body corporate”, and individuals have shared ownership of common areas whilst owning separate units.

Community Title:

A community title is divided into separate lots and is generally used in larger housing estates where owners share common areas and facilities (for example, gardens and recreational facilities). Individuals own specific lots, but shared areas are jointly owned and managed.

It is crucial to understand these differences and the potential value gained from each type before deciding which strategy to adopt.

Is There a Minimum Lot Size for a Subdivision?

The short answer to this is yes. However, there are circumstances where subdivision approval can be met through loopholes in the system. It is worth consulting a Town Planner to determine if your property may be eligible for subdivision.

Don’t think it’s the end of the day if the rules say you need a 7000 square metres to subdivide into two lots. Quite often we can find a way around that – Max Fragar

Can I Subdivide a Property Before Buying it?

Yes, if your land meets local zoning and minimum lot size requirements, you can often retain the existing house and subdivide the backyard. This is a common strategy for dual occupancy projects.

What is the Best Type of Subdivision Approval?

Choosing the best subdivision strategy depends on several factors that align with the development’s budget, time, and goals.

A crucial factor to consider is the needs of the surrounding community, as well as the type of development that would best fit their needs (to ensure there will be a demand for the end product).

Torrens Title (Standard/Most Common Subdivision)

As discussed, a Torrens title ensures that the owner owns and has full control over the entire building and the land on which it sits. There are no shared walls or facilities.

The Torrens title is ideal for detached or attached dual occupancies and does not include a body corporate or ongoing fees. This type of investment is best suited for owners who want complete control of their property, families seeking to create intergenerational wealth, or smaller developers.

Strata Title

Strata title means that owners share common areas such as driveways and facilities. They are most often used for townhouses or apartment building complexes. A strata title requires a body corporate and strata fees.

These types of developments are more complex, as they involve more rules and restrictions for compliance. This type of development is better suited to mid-sized developers.

Community Title

A community title is the largest and most complex type of subdivision strategy. A community title is generally used for gated estates or lifestyle villages where tenants share access to recreational areas (such as tennis courts, playgrounds, swimming pools, and clubhouse facilities) and infrastructure (roads, gardens, etc.).

The community title is a combination of Torrens and Strata, as occupiers own their individual lots but share the community’s infrastructure, necessitating the need for levies and a community association.

Subdivision Types Comparison Table

The Verdict: It Depends

A Torrens title holds the greatest value in terms of resale, offers the most freedom, allows for the avoidance of ongoing strata or levies, and is particularly suitable for dual occupancies or standalone dwellings. A community title or strata title may be required if the property is zoned for higher density or the site’s layout demands shared access. Ultimately, the type of subdivision to choose requires careful consideration based on many factors. Ideally, a Town Planner would be engaged to help choose the best strategy.

What are the Key Benefits of a Subdivision Approval

Subdividing your property comes with many benefits, which can optimise your investment. Four key benefits include:

Increased Equity, Value & Profit
Additional Income Streams
Reduced Tax
Optimised Land Use & Future Buyers

1. Increased Equity, Value & Profit

By splitting a large lot into smaller titles, you automatically increase the untapped value of owned land without having to sell the property.

I held those two houses for a period of time. And then I got to the point where I wanted to sell one and so I sold one. I significantly reduced the debt levels of that remaining property. As a result, I was able to do some really cool things in my life and it really took a lot of the financial pressure off me as I went through my life – Colin Fragar

The increase in equity provides an opportunity to receive higher valuations (therefore greater profit potential), increases borrowing capacity, and diversifies the property portfolio. This diversity also provides the bonus of an inbuilt exit strategy if needed.

2. Additional Income Streams

Receiving a subdivision approval can provide you with additional income if you decide to build an additional home to earn a passive income through renting it out (for example, a dual occupancy).

Alternatively, it is an opportunity to create intergenerational wealth or provide a future home for the children.

3. Reduced Tax Incentives

Whilst a subdivision may trigger capital gains tax (CGT), thoughtful planning (holding periods, exemptions, or using a trust) can be added to your cost base to reduce your liability. There are ways to avoid CGT, but you must meet specific criteria to be eligible for this exemption.

Additionally, if a property is developed and generates income, it may be eligible for depreciation.

4. Optimised Land Use & Future Buyers

With housing supply remaining a constant issue, New South Wales has made subdivisions faster and more achievable on smaller blocks than previously (we expect that this may happen in other states in the future).

We often look for ways to maximise your yield and often the way to do that is to look for other loopholes like subdivision through a dual occupancy process. Or maybe there’s some departures that a town planning firm like ourselves can organize to depart from the minimum lot size – Colin Fragar

Combining the supply issue with affordability becoming a greater concern, having two smaller lots at a more affordable price in a great central location is likely to attract more buyers when it is time to sell.

Our Subdivision Bonus Tip

The value of a subdivision comes from strategic planning. Zoning, access, and minimum lot sizes play a significant role, which is why we provide our clients with an initial Preliminary Planning Assessment to determine the strategy that best suits their goals.

What Are the Risks of Subdividing?

While subdividing land can lead to significant benefits, it is crucial to plan your investment from the start to avoid costly mistakes that could reduce your return on investment (ROI). With the right team by your side, it is possible to mitigate these risks.

1. Council Rejection

If the subdivision is not strategically planned and the application is not supported by sufficient information to justify approval, it may not be accepted by the Council or could be rejected. A council rejection wastes precious time and money, ultimately reducing profits. Working with an experienced Town Planner can help avoid this common mistake.

2. Unexpected Tax Implications

Subdividing land can lead to unexpected tax implications, such as capital gains tax. It is crucial to discuss your subdivision strategy with your accountant to avoid this unforeseen consequence of bad planning.

3. Utility Delays

The possibility of utility delays is often an overlooked part of the process. Avoiding utility delays for a subdivision requires early and thorough planning, as well as comprehensive site inspections, to provide the Council with well-designed utility mapping and clear boundaries that meet the requirements.

It is crucial to consider the increased demand the subdivision may place on utility providers to ensure that the possibility of time delays due to necessary upgrades is accounted for. Finally, communication and planning with utility providers are required to streamline the installation process.

What is the Process & Requirements of a Subdivision Approval?

A Subdivision requires meeting specific legal, planning, and technical requirements. Understanding these requirements helps to plan the project effectively and avoid costly mistakes.

In Australia, subdivision is governed by state-specific planning legislation and the local Council. The process typically involves the following 6 steps:

Site Feasibility Assessment
Planning Approval through Development Application (DA) or Complying Development Certificate (CDC)
A Subdivision Plan by a licensed Surveyor and Town Planner
Installation of Infrastructure & Services
A Subdivision Certificate issued by the Council or a private certifier
Title registration with the state’s Land Titles Office

1. Site Feasibility Assessment

Not all properties can be subdivided. Zoning and site eligibility play a crucial role in deciding whether land may be subdivided.

To achieve approval, we recommend consulting with a Town Planner as the first step to conduct a feasibility assessment.

In the preliminary planning assessment, we look at the loopholes. We look at the opportunities for departure from the rules. We look at what sort of things we need to achieve in order to pull off this subdivision for you. This assessment will determine whether a subdivision approval is likely and, if so, what the best approach would be to achieve the best possible outcome based on your goals – Colin Fragar

Councils apply rules based on various factors, including:

Minimum Lot Size: Each area is assigned a minimum lot size, which determines the smallest possible size for subdivided lots. This requirement varies depending on the land’s zoning and the local Council’s regulations.
Zoning Type: Areas are zoned for different use types (residential, commercial, industrial, etc). Zoning restrictions determine what kind of subdivision is allowed and whether the property can be used for multiple dwellings.

Above are the most basic factors, but there may be others that will be site-specific. As previously mentioned, subdivisions in New South Whales have made it easier than in the past. New zoning and lot requirements for NSW can be found here.

At Council Approval Group, the Preliminary Planning Assessment is designed to determine the feasibility of the project. If the project is considered viable, then an application can be considered.

2. Development/Planning Approval (DA or CDC)

Before subdivision, a property, requires approval from the local Council. This approval is granted through one of two pathways:

Development Application (DA): This is the most common process, requiring a formal application to the local Council. The Council will assess your proposed subdivision, taking into account factors such as zoning, land use, infrastructure needs, and community impact.
Complying Development Certificate (CDC): In some cases, you may qualify for faster approval through a complying development, which is considered ‘more streamlined’ and can often get approval from a private certifier rather than a council. This route has specific eligibility criteria. This process, although considered faster, can come with further complications; in most instances, we recommend a DA.

You may need to hire a licensed surveyor to address any potential objections the Council may have; however, we can assist with this process. Sometimes, fewer reports are required than initially expected by our clients.

Examples of these reports may include environmental assessments, particularly if the subdivision could impact local ecosystems or natural features, such as waterways, wetlands, or vegetation. The Council may ask for:

Environmental Impact Assessments (EIA)
Flood or bushfire assessments (if applicable)
Soil tests or contamination reports (in some areas)

Once the application is submitted to the Council, be patient. You may receive an approval or a Request for Further Information (RFI). If an RFI is received, do not panic. An RFI does not mean an unlikely approval; it simply means the Council is considering the proposal and requires additional information to validate its decision.

If Council Approval is received, please note that it may include conditions, such as services and easements, which must be met.

3. Subdivision Plan by Surveyor

A licensed surveyor must prepare a subdivision plan to outline the proposed division of the property, including:

Boundary locations
Location of any existing structures (e.g., buildings, fences)
Infrastructure changes (e.g., new driveways, road extensions)
Detailed layouts showing the shape, size, and positioning of each new lot.

The subdivision plan is a critical document required for both the DA and CDC processes.

4. Infrastructure and Services Installation

Subdivision usually requires that specific infrastructure be in place or upgraded to meet the needs of the new lots. This includes:

Road Access: New roads or driveways may be necessary to provide access to new lots.
Utilities: Water, electricity, sewerage, and stormwater services must extend to new lots. This involves significant work and coordination with utility providers.
Drainage Systems: Effective drainage plans require designs to prevent flooding and manage runoff.

5. Subdivision Certificate

Once the subdivision is approved and the physical changes to the land are made, a Subdivision Certificate must be issued.

A subdivision certificate confirms the subdivision complies with council conditions and must be issued by the local Council or a private certifier.

In New South Wales, a subdivision certificate is issued by the Principal Certifying Authority (PCA), which can be the local Council or a private accredited certifier. The PCA will need to confirm that the subdivision aligns with the approval and is suitable for occupation before issuing the certificate.

6. Title Registration

On receipt of the subdivision certificate, the titles can then be registered by the particular state registry.

In New South Wales, titles are registered with the NSW Land Registry Services.

Titles for the new lots can then be registered as legally separate lots, allowing for individual sale or development.

Does a Subdivision Approval Expire?

Yes, a subdivision approval can expire, but most approvals last for five years from the date the approval was granted. Building or engineering work should start ahead of the expiration date to avoid the subdivision approval from lapsing.

Who Should Help You with a Subdivision Approval?

It is recommended that you engage the following 4 professionals to help you with your subdivision. We do not recommend attempting a Subdivision Approval alone.

There’s still a large number of people who think that they can achieve the approval by themselves. They try to figure out the legislation, they spend hours deliberating over the different rules that are applied to their property, but they miss one thing and then they spend money on plans. Gets to the Council, and it gets refused. It all comes unstuck – Colin Fragar

1. Town Planner (Council Approval Group)

The Town Planner is responsible for assessing the likelihood of a favourable outcome for a subdivision and determining whether the project is worth pursuing. If issues arise, the Town Planner will be able to advise on the best approach to resolve them.

2. Surveyor

A Surveyor will prepare a detailed report of the subdivision plan and define the boundaries of the subdivision.

3. Civil Engineer

The Civil Engineer prepares designs and manages the construction of the property’s infrastructure, including drainage and utilities.

4. Conveyancer or Property Lawyer

It is recommended that you engage either a Conveyancer or a Property Lawyer for a subdivision. Conveyancers typically handle the administrative tasks and transfer of ownership titles, which is fine if the subdivision is uncomplicated.

If your subdivision is complex in nature, it is recommended that you engage a Property Lawyer who can provide further legal advice and guard against potential disputes.

Common Subdivisions Challenges & How to Overcome Them

Although subdivisions are a powerful wealth-building strategy, they can come with challenges which put people off. Understanding the potential risks and identifying them early on can have a massive benefit and hopefully prevent risks before they happen.

Below are some of the most common challenges faced by property owners who wish to subdivide, along with some strategies to overcome them.

1. Council Rejection or Delays

Subdivision applications are often rejected or delayed due to non-compliance with planning regulations, insufficient documentation, or site constraints (e.g., flood risk, bushfire zoning).

Overcome It:

Engage a Town Planner from the start. At Council Approval Group, we conduct a Preliminary Planning Assessment to identify any potential risks and tailor your strategy and supporting documentation to meet council criteria.

Having an experienced team by your side will help with council negotiations and enable a prompt response to any further requests.

2. Minimum Lot Size & Zoning Restrictions

Not all land is eligible for subdivision. Understanding zoning requirements or ways to circumvent them is crucial to maximising investment and land potential.

Overcome It:

What appears to be a “no” may be a “yes”. Working with an experienced Town Planner from the start who understands possible loopholes (such as dual occupancy subdivisions, lot size averaging, or planning variations) may make the difference between approval and not.

A skilled planner will know how to appropriately depart from the development standards and submit sufficient supporting documentation to obtain the approval you are looking for.

3. Unexpected Infrastructure & Delays

If approval is received, services (like sewer, stormwater, or road access) may need to be installed or upgraded to service the additional lot. This is often an unexpected cost, which can blow the budget and delay the project.

Overcome It:

It is recommended that a civil engineer is engaged from the start of the project. It’s also a good idea to get an estimation of these costs before the DA is lodged. Understanding the cost of these services helps to budget accordingly and ensures no nasty surprises along the way.

Understanding and coordinating this process will also avoid any unnecessary delays.

4. Utility Provider Delays

Space farm services can also significantly slow down the project, especially in new or regional areas.

Overcome It:

After receiving approval, it is essential to ensure civil works and utility applications begin to move forward. Working with professionals who have established relationships with utility providers ensures compliance and can speed up the process.

Remember, projects often take longer than expected, and it is crucial to include contingencies in your budget and timeline.

5. Legal or Title Issues

Properties with easements, covenants, or access issues can face legal complications during subdivision. Title errors or disputes with neighbours can also hold up registration.

Overcome It:

Engage with the property lawyer or conveyancer early in the process to help identify any potential title or legal risks. It is essential to resolve issues with neighbours or variations in covenants before applying.

6. Tax Surprises

As mentioned, a subdivision can trigger Capital Gains Tax (CGT) or other liabilities, and this catches many people off guard. It is imperative to know this from the outset if you plan to subdivide and sell within a short timeframe.

Overcome It:

It is essential to consult a property-savvy accountant before commencing a project to structure the investment appropriately to achieve the best possible outcomes. It is also recommended to hold onto the property for more than 12 months to gain the CGT discount.

7. Trying to DIY a Subdivision

Many property owners attempt to manage subdivision approvals themselves, only to face rejection, delays, or costly mistakes by not understanding the council rules.

Overcome It:

Avoid the DIY trap by getting expert advice from the start

Our Preliminary Planning Assessment identifies the right strategy for a specific property, saving time, money, and stress.

How Much Does it Cost to Subdivide?

Whilst the subdivision can offer fantastic returns, understanding subdivision costs can be daunting enough to put a person off from beginning their project.

Ultimately, understanding your ROI will help determine whether seeking approval is worthwhile.

You’re probably getting tired of doing all the lawn mowing and the upkeep and you just want to be able to make a good profit from the property – Colin Fragar

The first step in determining your ROI is to obtain the right strategic advice to understand whether a subdivision is feasible or not. Several factors influence this cost, and each subdivision application is unique in terms of the specific requirements needed to receive approval.

To understand the unique challenges and unexpected costs associated with a subdivision (especially if the property has not yet been purchased), it is crucial to receive tailored advice regarding the particular property for which you are seeking subdivision approval.

Ideally, you should consult with a Town Planner who can advise you on the expected costs for your particular subdivision project and the required process to get an approval. At Council Approval Group, we do offer a free consultation to help you take this first step.

Conclusion: Is a Subdivision Right for You?

Subdivision is one of the most powerful strategies available to Australian property owners and investors in 2025.

With housing demand at record highs, planning rules becoming more flexible, and the potential to significantly increase property value, it’s no wonder more Australians are exploring subdivisions as a way to unlock hidden equity and create long-term wealth.

But, as Colin Fragar and the Council Approval Group team often remind our clients, success in subdivision isn’t just about dividing land; it’s about having the right strategy, team, and guidance from day one.

From navigating council requirements to maximising your site’s potential, the right advice can mean the difference between a game-changing result and costly setbacks.

Before you start drawing plans or lodging applications, click below to book your free consultation.

It’s the smartest first step to protect your investment and achieve the best outcome for your subdivision.

Need a Town Planner to Help with your Subdivision?

We’d love to help you get started and guide you through the process of your subdivision. We have helped 40,000+ people so far. We’re a family-run business and have been in business for 29 years, and have Town Planners who cover New South Wales, Victoria and South East Queensland

We will be able to take you through this process by starting with your Preliminary Planning Assessment to see if your property meets requirements, to then moving forward and guiding you through the steps to make your subdivision a success.

Please click below to schedule your free consultation with us today. We will be able to advise you on how to proceed with your project.

We look forward to helping you plan your subdivision development dreams a reality in 2025.

Article Last Updated: 8 September 2025