Subdividing Your Land For Unit Or Townhouse Developments


Subdivision of property and building multiple units or townhouses has been a means for developers, investors or land owners to create wealth. That is provided they choose wisely and make the right property purchase and building decisions. If all goes to plan valuable profits are to be made once all real estate and building costs have been taken into consideration.


However, there are a few things to keep in mind if you are contemplating subdividing land for investment. In Melbourne the opportunities can be quite lucrative in certain suburbs such as Williamstown, Essendon and some of the more popular inner city locations to name a few. However, you may want to consider the Geelong property market as it is far more affordable compared to Melbourne. And quite a nice location to live in.


Firstly, are there other sub divided properties in the area? Older populated areas generally allow sub division. Check the local council zonings. Zone 1 allows higher density, Zone 2 & Zone 3 lower density and more restrictions. There are many good affordable properties on larger blocks of land within Geelong or suitable undeveloped blocks on the outskirts for purchase. While many entrepreneurs are contemplating unit development ventures, there are a few questions that need to kept in mind.


The first consideration is whether the investment can be financially viable. Before starting witha unit or townhouse development plan, you need to take a look at the following property subdivision suggestions prior to making that decision. Obtaining good honest advice is most important.


Location is the first success factor in choosing your property for sub division.

The best places for a multi unit development project would be centrally located and:

  • close to schools
  • public transport
  • hospitals
  • shopping facilities or supermarkets
  • sports facilities


To carry out a site analysis consider what can you fit on the property. Measure it yourself and get your architect to help with a rough schematic drawing to see what might fit on the site – 2 or 3 units or townhouses? Allowing 250-300 square metres per dwelling.

900 m squared allows for 3 dwellings.

A 3-4 bedroom townhouse or unit will require 2 parking spots, with a building height of 7.5m .

Then look at what easements, heritage overlays and services are on the property such as:

  • Storm water
  • Sewage
  • Utilities – water, power and gas

Any problems with these would lead to added costs.


The cost of building units on a subdivided property will depend on several factors. On an average, build prices for a unit or townhouse in Geelong would be around $10,000 – $18 000 per square. The final price depends on the land, fixtures and finishes chosen. Apart from this, any defect in the drainage or water supply lines would add to the price. Hence choosing wisely.


Whether it’s a townhouse or multi unit development you still need to allot space for parking, private open spaces, and outdoor spaces along with considering any heritage overlays.

With more and more people looking for low maintenance smaller homes, building townhouses or units is fast becoming a popular choice.

Michael Spiteri is a local Geelong Builder and owner of Belcoast Homes. He himself develops multi-unit developments for sale and for property developers or investors.

If you are ready to consider developing premium units or townhouses in Geelong and surrounding suburbs please contact Belcoast Homes through our contact page.

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