Melbourne is one of the fastest-growing cities in Australia, with a burgeoning population and increasing demand for new housing developments. As a result, property owners and developers are constantly looking for ways to maximise the value of their land, and subdivision is becoming an increasingly popular option. Subdivision refers to the process of dividing a single piece of land into multiple lots, each with its own title and often with its own dwelling.
While subdivision can be a lucrative investment, it can also be an expensive and complicated process. There are several costs associated with subdivision in Melbourne, which vary depending on the size and location of the property, the type of subdivision being carried out, and the services required. In this blog post, we’ll take a closer look at some of the key subdivision costs you need to consider in Melbourne.
- Land surveying and planning
Before you can begin subdividing your land, you will need to engage the services of a licensed land surveyor to conduct a survey and produce a detailed plan of the proposed subdivision. This process typically includes site analysis, concept planning, subdivision design, and submission of the planning permit application to the relevant local council. The cost of these services can vary depending on the complexity of the project, but you should expect to pay at least several thousand dollars for this stage of the process.
- Council fees and charges
Once your subdivision plan has been submitted to the council, there will be a range of fees and charges payable. These can include application fees, planning fees, and inspection fees. The exact amount you will need to pay will depend on the size and complexity of your project, as well as the specific requirements of your local council. In some cases, you may also need to pay contributions towards local infrastructure and services, such as parks, roads, and public transport.
- Utility connections and infrastructure
One of the most significant costs associated with subdivision is the provision of utility connections and infrastructure. This includes things like water and sewage connections, electricity supply, and telecommunications infrastructure. Depending on the location of your property, you may need to pay for new connections to be installed, or you may need to upgrade existing infrastructure to accommodate the new lots. These costs can quickly add up, so it’s important to budget for them carefully.
- Construction costs
If you plan to build new dwellings on your subdivided lots, you will also need to factor in the cost of construction. This can include everything from site preparation and earthworks to building materials and labour. The exact cost will depend on the type of dwelling you plan to build, as well as the level of finish and quality you are aiming for.
- Legal and professional fees
Finally, it’s important to remember that there will be a range of legal and professional fees associated with subdivision. This can include things like conveyancing fees, legal fees, and accounting fees. You may also need to engage the services of a project manager or development consultant to help you navigate the complex process of subdivision.
In conclusion, while subdivision can be a profitable investment in Melbourne, it’s important to be aware of the costs involved. By consulting industry you can be enabled to budget and plan for the various expenses, you can ensure that your subdivision project is a success and delivers the returns you are looking for.