Property Subdivision: What is it?

In property-terms, subdivision involves dividing a property or piece of land into two or more individual properties. The purpose of subdivision is to make an immediate or future sale, or to establish land for a future development, the end-result being maximised investments.

Factors to Consider


First and foremost, it is important to check with your council that the prospective development complies with the zoning regulations in your area. The zoning category allocated to a piece of land by your local council will determine the size and type of development that can be constructed.

An ‘A-zone’ means that only standard homes can be built on the land; the easiest option for subdivision, it allows for several small properties to be built on a pocket of land. A ‘B-zone’ allows for three-story properties, and a ‘multi-zoned’ piece of land is suitable for the development of larger-scale commercial or industrial properties.


Not something to overlook, and like zoning, boundary regulations vary between councils; one council may allow a property to be developed on the boundary of a neighbour’s land, while another council won’t permit this extension. Something to consider: if the fence or a wall of your property is on the outskirts of a neighbour’s land, you will have shared ownership of that piece of your home with the person next door.


Every home requires a draining system of its own, and so a subdivided property means a subdivided drainage system. Before going ahead with the subdivision, with the assistance of a reputable builder, the type of drainage system running at your current property needs to be determined. This is important because a parcel of land cannot be sold in subdivisions if the site has not been adequately drained, or if there is no knowledge of the drainage capacity.


Agreements under a legal contract will place restrictions on several factors relating to the appearance and practicality of your subdivided property. These might cover everything from driveway material requirements to garden aesthetics and the colour of the property; you may be given a colour palette with around 15 options. Some covenants do not allow for subdivisions. Before going ahead with a development, you must ensure that subdividing your property is permitted by your council in the first place.

Where to from here?

The first step is to get in touch with your local council. They will run you through the regulations in your area surrounding factors such as zoning and areas of compliance. Once you’ve gotten your head around the subdivision ‘dos and don’ts’ for your area, a licensed surveyor will be able to compile a subdivision plan for your property. Bring this to us and we’ll take care of the finely detailed documents required. Once these are lodged and approved by the Development Assessment Commission, you’ll be issued with Certificates of Title, meaning that each subdivided property is official!

The experts in subdivision conveyancing, contact us at Cape Settlements today. We’ll get the ball rolling, so you can start maximising your investments!