Costs of subdividing land vary depending on size and location

The costs of subdividing land can vary significantly depending on both the size and location of the property. Larger parcels often require substantial investment in infrastructure but offer the potential for higher returns. The location impacts costs through varying council contribution rates, state government levies, and the extent of required infrastructure development.

Size of the Land Parcel

Larger Land Parcels

Infrastructure Construction: Larger parcels that can be subdivided into smaller greenfield sites typically require substantial investment in infrastructure such as roads, drainage, sewer systems, and utilities. These costs can be high, but the potential return is also greater if the development is successful.
Higher Yield: More land means the possibility of creating more lots, which can lead to higher overall returns despite the higher initial costs.

Smaller Land Parcels

Lower Infrastructure Costs: Smaller parcels, such as those intended for duplex developments, generally incur lower infrastructure costs. The main expenses are usually the land purchase and the construction of the new buildings.
Lower Return: While the costs are lower, the potential return is also smaller compared to larger developments.

Location of the Property

Council Contribution Rates

Different local councils have varying contribution rates, which can significantly affect the overall cost of subdivision. These rates are fees charged by councils to fund local infrastructure and services.

State Government Levies

State government levies also vary by location and can add a substantial cost to the subdivision process. These levies are used to fund broader state infrastructure projects.

Infrastructure Requirements

Rural Areas: Subdividing land in rural areas may require more extensive infrastructure development, such as roads and utilities, which can increase costs.
Suburban and Inner-City Areas: In suburban or inner-city areas, existing infrastructure may reduce the need for extensive new construction, potentially lowering costs. However, land prices and contribution rates may be higher in these locations.

We provide expert guidance to help you navigate these complexities and plan your subdivision project effectively. Contact us today to learn more about how we can support your land subdivision efforts and help you achieve your development goals efficiently and within budget.