Perth's property market has a huge thriving potential with subdivisions being capitalized. One big block converted to two or more living-worthy land stands out as the diversifying property strategy for building a future-ready portfolio.
Subdivision is a profitable stand-alone development strategy that can be used in conjunction with one renovation and construction value-added strategy. As a land development component, subdivision is the process by which larger land parcels are subdivided into smaller ones, by being individually tiled. Next, the lands are sold off for construction.
In Western Australia, the West Australian Planning Commission (WPAC) administers property subdivisions at the state government level. Unless the smaller built strata subdivision application needs arise, the local councils are not involved in administration. The overarching decision maker is the WPAC who is holding the power of overruling and Council's or the local government's objections. The Councils are not the delegated authority for determining the green tile or survey strata or built strata subdivision applications.
Subdivision is the standalone opportunity for development for novice developers in Perth, from the perspectives of project cost and risk. Now, for optimizing returns, the subdivision is to be taken up in conjunction with renovations and building.
Even if the strategies are to be sequentially arranged, then for financial matters, the strategies should be combined for maximizing the potential to add value and generate the best returns on investment for each project.
Subdivision Types In Perth
Three types of subdivisions are practised by the surveyors in Perth. At the time of planning the property subdivision, the exact applicable type has to be finalized. Each requirement has to be finalized meaning - moving through the process is faster to reap the returns sooner.
What Does Green Title Subdivision Mean?
A Green Title Lot is even termed a Freehold Lot. It indicates the title has no common areas or shared services. The landholder, here entirely owns the lot and does not share any utility services, like power, sewerage, water and gas lines with other landowners.
The maximum land sold in Perth is Green Title. But most of the free-standing homes are on the Green Title lots. These are named Green Title, based on historical facts - when the sketches on the title documents had been featured by green shading.
When Should Green Title Subdivision Be Applied For?
Green Title Lots provide complete independence to the owners from the neighbours, particularly of their street frontage along with the exclusive access point to their property.
So, if a parcel of vacant land is being subdivided for selling off the smaller, newly established titles, then the attractive option is creating Green Title lots for the subdivisions to be more appealing to the potential buyers. On the flip side, if the existing property is to be subdivided for selling off a part of your land, based on the land's characteristics, then the Green Title Subdivision is not going to hold true. It largely depends on where the house is situated on the block and whether separate services and access are possible to be established.
Since the Green Title Lots cannot allow sharing services and common areas with any other titles, these are more expensive. The reason is for the application to be approved, the factor in works like sewer lines extension and constructing additional cross-overs will be most probably needed.
What is Meant By Built-Strata Subdivision?
Built Strata Subdivision is often applicable to the developments where the buildings have formed the boundaries of each title and show at least one boundary on the strata scheme. These are related to multi-apartment developments, multi-town house constructions, and commercial developments. Normally, the surveyors recommend the Built Strata Subdivisions for the new, multi-dwelling projects since all the needed service connections are defined at the outset. Any alterations might not be needed in the future.
Following the multiple dwelling constructions on one title, the Built Strata plans are issued. It means the developers cannot sell off any dwellings till the Strata Titles are cleared and issued for the entire dwellings.
But if the owner's timeline is such that the project can be managed in stages, then when subdividing the land is possible is preferred. The Survey Strata will then allow the construction of each dwelling and be sold independently of others.
Added to the regular approval process, Built Strata Subdivisions consist of more than five dwellings, with land size greater than 2500 meter square or of a commercial nature - where special WAPC approval is needed.
When Should Built Strata Subdivision Be Applied For?
The most appropriate subdivision strategy largely depends on the land's characteristics, the R-Code zoning, the budget, the development aspirations and the time frames wherein the returns are to be realized.
The owner should thoroughly understand the specific requirements of the Built Strata Subdivisions before the application process is commenced for establishing whether the outcomes are going to meet the expectations.
The approval-receiving process of Built Strata Subdivisions is likely to be longer and more complex compared to the other subdivision types. So, the owners have to work with licensed Surveyors experienced in Built Strata Subdivisions and deeply understand the information needed for individual relevant bodies for the entire project duration. A competent project manager helps in ensuring the necessary trades are pre-booked and scheduled for completing the works at the project's most efficient and strategic stages.
Finally, the property development is aimed at adding significant value to the original purchase, hence, delivering financial returns to the developer. Efficient subdivision process management leads to quicker project completion and greater financial returns generation.
What is Meant by Survey Strata Subdivision?
Survey Strata Subdivisions are sought when an owner is owning a corner block or land with a prevailing dwelling at one end, as well as sufficient space for another dwelling at the other. Even they are suitable for clients owning vacant land and willing to build two or three townhouses to be kept adjacent to each other on the block. The Survey Strata Subdivisions and Green Title Subdivisions differ with reference to each of the new titles sharing access to one or many more key utility services like the sewer lines.
When Should A Survey Strata Subdivision Be Applied For?
Whether a Green Title Subdivision or a Survey Strata Subdivision is to be created, the requirements depend on several factors. These include the block's overall accessibility and the newly proposed strata titles, along with the possible obstacles to development as the sewer location and other easements have presented. The owner's development budget is another key factor where the survey strata subdivision is suitable.
Land subdivision is indeed a revenue-generating way for building up wealth, reducing mortgage debt and reinvent lifestyle. The property owners of Perth prefer to subdivide for raising capital, selling unused land, developing empty blocks and downsizing their living arrangements. Rather, the specific reasons to subdivide are rooted in individual circumstances. The subdivision surveyors guide the owners in their property journey by employing the most relevant strategy and helping the owners exceed their goals.
