Subdividing Property Melbourne – The Plan of Subdivision Process Explained

Have you ever thought about doing a residential property development project but had concerns around subdividing your property?

Well, keep reading because in this article I am going walk you through exactly what you need to know when subdividing property in Melbourne.

I’ll be sharing everything that you need to know.

Your plan of subdivision allows you to subdivide your land into two or more parcels of land that can be sold off separately.

This is a pretty important step as residential property developers.

In-fact it’s critical that you complete your plan of subdivision timely as it means you’ll have the ability to settle your off the plan sales upon completion of your project. Meaning you will see your money sooner.

On the flip-side. Any delay in your plan of subdivision approval will delay your payday.

It’s extremely common to see beginner developers concentrating on the build and not giving the subdivision process the respect it requires.

It doesn’t matter how quickly or nicely you complete your build. You won’t be settling with your buyers or seeing any money unless you complete your subdivision and registration of titles.

All of which takes time, so leaving it to the 11th hour isn’t an option.

You need to get on the front foot from the beginning of your project and keep your finger on the pulse all the way through.

Re-establishment Survey

It all starts with getting a re-establishment survey completed by your land surveyor.

subdividing property melbourne

Now we are going to jump ahead because I really want to focus on subdividing your property in Melbourne. And the actual subdivision process.

Subdivision Process

Before I get into the actual subdivision process steps if you need some clarity on dual occupancy subdivisions check out this trusty article on what a dual occupancy subdivision and or property is.

And if you need to clear up any confusion around strata plans vs plan of subdivisions click here.

So, you have your survey completed and your new dwellings have been designed. You’ve submitted to council and you’ve received council endorsed plans.

It’s at this point you need to go back to your land surveyor who did the re-establishment survey. You need to get him/her to draw your proposed plan of subdivision.

  1. Re-establishment survey
  2. Project design
  3. Council submission
  4. Endorsed plans
  5. Proposed POSD

You proposed plan of subdivision will clearly outline the boundary of each of your new dwellings. It will also detail each dwelling’s titled land size.

So, when someone buys one of your dwellings it’s these cut up blocks of land on the subdivision that they are purchasing.

The plan of subdivision will also show your sites common property if there is any.

Your surveyor will then lodge the proposed plan of subdivision with the council on your behalf. It will accompany all of your other subdivision requirements.

In Victoria, there is an online portal called the Surveying and Planning through Electronic Applications and Referral known as SPEAR for short.

subdividing property melbourne

It’s a free service provided by the department of environment, land, water and planning DELWP.

It essentially makes lodging and processing your subdivision planning permit faster and easier for you as the applicant.

It also makes it easier for the council and referral authorities.

Once your subdivision application has been uploaded into SPEAR it will become your home base. It will list everything that is required to complete your subdivision.

It’s essentially a checklist for you to work through and complete. With the aim of receiving your statement of compliance (SOC) from the council.

The contents of the list will differ for each municipality. Once you’ve completed one subdivision don’t assume you have the master list as it’s always going to be different.

Some of the things you might see on your list include items that your land surveyor will need to complete. Such as the ones below.

Applicant Contact Requirements

applicant contact

There will also be a list of requirements from your specific council such as the items below.

Responsible Authorities

responsible authorities

And lastly, there will be a list of items that you’ll need to work through. Items that relate to third party authorities such as the ones listed below.

Referral Authorities

referral authorities australia

Once you have checked off all the items listed on SPEAR you’ll receive your statement of compliance (SOC) from the council.

The next step is to then ask your solicitor to lodge your statement of compliance along with your original title at the titles office to receive your new registered titles.

This process takes time as you are relying on third parties that you have no control over. It’s critical your solicitor lodges to the titles office on your behalf as soon as possible.

Something to be aware of is if there is a mortgage over the property. The bank will hold your original title, so your solicitor will need to request the bank to release your title first. Again, this takes time so don’t mess around.

Remember, time is everything as a residential property developer.

Right, so now you’re at the mercy of the titles office to spit out your new titles. This timeframe is extremely unpredictable as it depends on the volume of applicants on the title’s office desk.

As a guide, you can put a circle around 2-6 weeks.

Lastly, here is some detailed information on strata subdivisions for dual occupancy projects.

Conclusion

Subdividing property in Melbourne requires everything I’ve outlined in this article to be done timely. It can be super costly if you don’t get it right and something slips through the net.

The only reason we do these developments is to get to settlement day so we can collect our profits ready to roll into the next project.

Make sure you put the time and effort into learning what’s required to complete your own plan of subdivision. Then systematically start working your way through the list from the very outset of your project.

Got questions? Subdividing property in Melbourne and development project management is our thing.

We can run the full development process for you if that’s something you are interested in.

You can even lean on us as your trusted property development consultant if that’s what you would prefer.

Whatever kind of help you are after don’t hesitate to reach out 1300 799 277 we’d love to hear from you!

peter kelly

To put it mildly, Peter Kelly is enthusiastic about real estate. When he’s not looking at properties, or visiting potential sites, Peter can be found online at realestate. com. For him, it’s more than a job – it’s an obsession. Peter is a co-founder here at Little Fish Property developments.