Considering subdividing your property? It can be a smart way to unlock its value and create new land parcels for sale. But before you dive in, it’s crucial to understand the costs involved.
Subdividing, which legally splits land or buildings into separate pieces for ownership, can be a complex process. That’s why we’ve developed a so you have a clear understanding of the process.
What will it cost me?
Costs for subdividing in Auckland varies greatly. Why? Location, number of lots, dwelling sizes, market conditions, development, and infrastructure costs, etc. However, as a general $$ figure is likely to start at $150,000 per lot.
Some of these costs include:
- Application and processing fees (Council)
- Land Information New Zealand fees
- Solicitor fees
- Development Contribution and Infrastructure Growth Charges (Council, Watercare)
- Professional services eg: surveying, engineering, planning, and other specialists
- Physical construction work eg: drainage (stormwater, wastewater), driveway and vehicle crossing, and earthworks and retaining utilities (Vector, Gas, Chorus)
But please remember, the cost of a subdivision can be influenced by factors, both internal and external to the development itself.
Sure, the upfront costs of subdividing may seem like ‘big numbers’, but Auckland’s strong property market offers attractive potential returns. With high demand and a growing population, a well-designed subdivision project can be a very profitable investment. Furthermore, these costs can be phased strategically, making the development more financially manageable.
We offer an affordable feasibility report to assess your property’s potential. This way, you’ll gain valuable insights early on and avoid investing in a project that might not be feasible.
How has the Auckland Unitary Plan changed things?
The Auckland Unitary Plan (AUP) increases subdivision and development potential across Auckland. Where most previous district plans stated how many lots or dwellings could be created on a site, the AUP allows for as many dwellings or lots on a site as physically feasible, as long as the quality of living for occupants is acceptable.
This means that a subdivision with a high-quality residential design will achieve a higher number of lots than a site which is simply subdivided into vacant sections. Common reasons people choose to subdivide:
- To sell the subdivided land to fund another housing project.
- Sell the subdivided land with a new house for greater returns.
- Help fund a retirement.
- Help your children get on the property ladder.
- Your section is simply too large for your needs.
- Your property has been re-zoned to enable subdivision where it previously wasn’t an option.
The Bottom Line
Subdividing your property can be a rewarding venture, but it’s essential to be realistic about the costs involved. The Thomas Consultants Subdivision Guide offers a clear roadmap to navigating the complexities of subdivision and unlocking the value of your land.
Our guide includes:
- Information about the Auckland Unitary Plan
- 10 Step infographic of what’s involved
- Detailed information of each step
- Subdivision timeframes
- What a Resource Consent involves
- Meet our team of experts
- Customer testimonials
- Tips so you can reach subdivision success sooner!
Talk to us about advice on spreading payments across reports, infrastructure, construction, and final approvals. Our expertise ensures your subdivision application meets all the requirements for a smooth and timely Council go-ahead.
Get in touch with our planning team today and let’s get started!
