Costs to subdivide one into two lots can vary greatly, as each site has its own constraints and differences when it comes to the infrastructure required.
Some lots may require minimum infrastructure, such as a new sewer and water connections on existing mains, electricity or phone services. Others may need more substantial upgrades such as footpaths, water and sewer extensions and underground electricity connections. These, and many other, factors impact the cost of subdivision.
Under the Adopted Infrastructure Charges Regime (AICR), the maximum infrastructure charge is $28,000 per additional allotment although some council areas levy less than this amount. The estimated cost for the entire subdivision process, including infrastructure charges, statutory fees, civil works, and consultants is usually between $65,000–$85,000* based on some general rules of thumb. However, each subdivision requires its own financial analysis and feasibility, as costs in some cases can exceed this cost range.
The reason for such a broad range is required civil works on each project can vary significantly. Even two projects, which look the same, can have a significantly different costs.
"There can be significant cost variations in infrastructure charges not only in different council areas, but even in different catchments within the same council."
Consult Planning frequently work with project managers and engineers to firm-up project costs for a subdivision proposal as part of due diligence feasibilities and/or the submission of ROL applications – ensuring projects are profitable.
*Disclaimer: This information is for education purposes only and this general advice should not be relied upon in any particular situation or financial transaction. Whilst all care has been taken in the preparation of this advice, no responsibility will be held by Consult Planning Pty Ltd for any errors or omissions therein. Requirements often change and it is strongly recommended that any particular subdivision proposal is specifically reviewed by a Town Planning Consultant and Civil Engineer to identify any specific and unusual constraints which may apply. Councils also offer pre-lodgement meeting services and these can be beneficial in determining all constraints which may apply to a site. This information is accurate at the time of publishing being June 2016.