Land Subdivision Part 2: Types and Application Process

For developers and property owners, understanding and correctly executing land subdivision is a critical strategy for enhancing property value and unlocking new development opportunities.

Subdivision involves dividing a single parcel of land into multiple smaller lots, each with its own independent legal title, allowing for individual sale, development, and usage rights.

The creation of these independent titles is the cornerstone of the subdivision process, significantly increasing asset flexibility and economic value.

Given the legal, planning, and engineering complexities involved, engaging professional guidance is essential. Eipi10 is well-positioned to assist owners in streamlining the subdivision process, mitigating risks, and maximising potential returns.

Common Types of Land Subdivision

1. Torrens Title Subdivision

   The most common form of subdivision, ideal for detached dwellings and duplex developments.Each subdivided lot is granted an individual, freehold title with direct land ownership, offering a clear and straightforward ownership structure that is highly attractive to developers and purchasers.

   
   

2. Strata Title Subdivision

   Primarily used for multi-unit residential developments such as apartments and townhouse complexes.Under a strata scheme, each unit holds a private title, while common areas — including corridors, gardens, lobbies, and shared facilities — are jointly owned and managed by all owners.Strata subdivision underpins much of Australia's medium to high-density residential development framework.

   
   

3. Stratum Subdivision

   It is important to distinguish Stratum from Strata.A Stratum subdivision separates different functional components within a building vertically — for example, retail space on the ground floor with residential apartments above.This structure is particularly advantageous for mixed-use developments (commonly in B3 or B4 zones), providing a flexible framework that allows distinct ownership, management, and operational strategies for each component.

   
   

4. Community Title Subdivision

   Suitable for large-scale projects incorporating extensive shared facilities, such as gated communities and retirement villages (prevalent in areas like Northern Beaches Council).Under a Community Title scheme, residents own their private lots while collectively owning and managing shared amenities such as parks, swimming pools, gyms, cinemas, and community centres, governed by a formal community association and management rules.

Overview of the Subdivision Process

Once subdivision eligibility is confirmed (including compliance with minimum lot size, frontage, and planning controls), the standard process typically includes:

1. Engagement of a Registered Surveyor

   A surveyor will prepare a proposed subdivision plan delineating new boundaries, allocation of communal areas (such as Right of Way), creation of easements, and definition of any restrictive covenants.

2. Preparation and Lodgement of a Development Application (DA) or Complying Development Certificate (CDC)

   Depending on the nature and complexity of the subdivision, a Development Application (DA) may need to be lodged with the local council for assessment and approval.For simpler projects that meet specific criteria, subdivision may be processed via a Complying Development Certificate (CDC), offering a faster and more streamlined approval pathway, thereby reducing administrative timeframes and costs.