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The cost of subdividing land can vary depending on a number of factors such as the size and location of the property and the availability of infrastructure.
This is a very common question received by planners. To keep it simple, this addition to the learning hub will focus on 1 into 2 lot subdivisions, with these types of subdivisions still the most popular on the Gold Coast. The cost of subdividing land can vary depending on a number of factors such as the size and location of the property and the availability of infrastructure. Below is an overview of the typical costs associated with subdividing land on the Gold Coast:
1. Council Fees
One of the largest expenses associated with subdividing land is council fees. These fees can include application fees, plan sealing fees, plumbing and drainage fees, operational works, and infrastructure contributions. The fees can vary depending on the level of assessment of the application and the availability of infrastructure. The City of Gold Coast application fees for a two lot subdivision are $1,862.00 (as of 30/3/2023) if code assessable and $2,156.00 if impact assessable. The fees for infrastructure connections or the like can vary significantly depending on the complexity of the works required.
Council also charges an infrastructure charge for any new allotment created in the City. This charge is not due until just prior to plan sealing. The standard charge for an additional lot is $31,080.00 (as of 30/03/2023). This fee can be reduced depending on the infrastructure provided to a new lot. For example, if your subdivision is within a rural area of the city and no sewer connection is available, the fee will reduce by approximately 33%. It is important to note that the infrastructure charge does not include any physical connections to infrastructure. The charge is essentially a tax payable by the developer that is then used for infrastructure upgrades and the like within the city.
Estimated council costs: $30,000.00 – $40,000.00
Various consultants are involved during the process of a subdivision. At a minimum, the following consultants will be involved:
A civil engineer is also often involved in subdivision applications. Additional consultants can be involved depending on the complexity of the site.
Estimated costs for consultants: $10,000.00 – $30,000.00
3. Infrastructure Costs / Physical Construction
The physical construction of the subdivision is where the costs can vary most significantly. This is due to the various factors that can influence the cost of establishing a two-lot subdivision. In order to achieve plan sealing from Council, both allotments will need to be provided with all services and infrastructure. This includes the following at a minimum:
Additional conditions can also be imposed by Councils such as covenant works, environmental rehabilitation, bushfire buffers, etc., that all increase the costs of physically establishing the subdivision. The difficulty in pricing this stage of the process is due to the major variances from property to property. For example, if the Council sewer main is located on the opposite side of the road and a new sewerage connection is required, the road may have to be cut and the connection installed. This can instantly add thousands to your costs. It is critical to engage a qualified planner to help explain some of these potential cost-incurring items should you be considering a subdivision.
Estimated costs of physical works: $30,000.00 – $150,000.00
Other costs associated with subdividing land on the Gold Coast include financing fees (holding costs), marketing costs (real estate agents, etc.), and maintenance costs. These costs are unknown and will affect people differently depending on each individuals circumstances.
Overall, it is extremely difficult to give an accurate estimate on the costs involved to undertake a 1 into 2 lot subdivision on the Gold Coast. The most significant variant when it comes to costs is the physical construction of the subdivision. A number of variables can cause a wide variance in costs.
Align would estimate that total costs to undertake a 1 into 2 lot subdivision is $70,000.00 – $220,000.00.
Should you be considering undertaking a subdivision contact Align today to discuss.