Why Subdivide?
Subdivision allows a property owner to divide a single parcel of land into smaller, separate lots, each with its own title. This creates opportunities to sell land, build multiple dwellings, or increase the overall value of the property. In New South Wales, subdivision is tightly regulated and requires both planning approvals and construction works to make new lots functional and compliant.
For new landowners, understanding the process early is essential. Subdivision involves more than lines on a survey — it often requires earthworks, retaining, drainage, and service connections to deliver build-ready sites.
Understanding Subdivision Types in NSW
Torrens Title Subdivision
Torrens Title is the most common form of subdivision in NSW. Each lot receives its own individual land title with no shared property. This suits detached homes and small residential infill developments.
Learn more at: NSW Land Registry Services – Torrens Title overview.
Strata Subdivision
Common in apartment and townhouse developments, strata subdivision allows separate ownership of individual units combined with shared ownership of common property such as driveways or open space.
Learn more at: NSW Fair Trading – Strata Schemes.
Community Title Subdivision
This applies where larger estates share facilities such as private roads, parks, or recreational areas. Owners hold their lot plus a share in the community property.
Learn more at: NSW Fair Trading – Community Schemes.
Stratum Subdivision
Less common but useful in mixed-use developments, stratum subdivision divides vertical sections of a building (e.g., retail below and apartments above).
Learn more at: NSW Land Registry Services – Stratum subdivisions.
Planning Framework in NSW
Subdivision must comply with planning rules set out in local planning instruments and state legislation. The key layers include:
- Local Environmental Plans (LEPs): Define minimum lot sizes and land use zones.
Read more at: NSW Department of Planning – LEPs. - Development Control Plans (DCPs): Provide detailed guidance on lot frontage, access, landscaping, and building envelopes.
[Check with your local council – DCPs are usually published on council websites.] - State Environmental Planning Policies (SEPPs): Cover state-wide matters such as affordable housing and infrastructure.
Learn more at: NSW Planning Portal – SEPPs. - Local Government: Councils issue subdivision approvals and subdivision certificates. Each council has different timelines and requirements.
Key Considerations Before You Start
1. Zoning and Minimum Lot Size
The first step is confirming that subdivision is permitted under your zoning and that your land area meets the minimum lot size. This information is available through the NSW Planning Portal – Spatial Viewer.
2. Site Constraints
Physical factors influence feasibility and cost:
- Slope and levels (affect earthworks and retaining).
- Flooding and overland flow paths.
- Bushfire Attack Level (BAL) requirements.
- Biodiversity or heritage overlays.
- Acid sulphate soils or mine subsidence zones.
3. Services and Infrastructure
New lots must have legal and practical access to services:
- Sewer depth and location.
- Stormwater connection to a lawful point of discharge.
- Water supply and metering.
- Power and communications (NBN).
4. Market Demand
Subdivision should also be tested against market demand in your suburb. Oversupply or unusual lot shapes may affect resale value.
The Subdivision Process Step by Step
Step 1: Feasibility and Pre-lodgement
- Commission a feature and level survey.
- Engage a planning consultant or check zoning via the Planning Portal.
- Assess services, drainage, and access.
- Identify early civil engineering requirements such as pad levels and retaining walls.
Step 2: Development Application (DA) or Complying Development Certificate (CDC)
Most subdivisions require a DA lodged with council. For simple two-lot subdivisions that meet strict criteria, a CDC may be an option.
Find out more at: NSW Planning Portal – Development Applications.
Step 3: Subdivision Works Certificate (SWC)
Before construction, you must obtain a Subdivision Works Certificate for civil infrastructure such as earthworks, drainage, and roadworks.
Step 4: Civil Works Delivery
This stage brings the subdivision to life:
- Bulk earthworks and site grading.
- Retaining wall construction.
- Stormwater pits, pipes, and headwalls.
- Sewer and water connections.
- Power and communications trenching.
- Driveways or internal access roads.
Step 5: Subdivision Certificate
After works are complete and all conditions are met, a Subdivision Certificate is issued by council or a certifier.
Step 6: NSW Land Registry Services Registration
The final step is registration with NSW LRS to create new land titles.
See details at: NSW Land Registry Services – Subdivision.
Civil Engineering Considerations
Earthworks
Cut-and-fill operations prepare level building pads. Incorrect levels can increase building costs or create drainage problems later.
Retaining Walls
Retaining must be engineered to AS 4678 and located within lot boundaries or supported by easements. Drainage behind walls is critical to long-term performance.
Stormwater
New lots need lawful stormwater discharge. This often requires inter-allotment drainage easements, on-site detention systems, or detention basins.
Driveway and Road Access
Driveway crossings must meet council standards for width, grade, and sight distance. In multi-lot subdivisions, internal access roads may require pavement construction to RMS standards.
Utility Coordination
Utility providers (Hunter Water, Ausgrid, NBN, etc.) have separate design and approval processes. Coordination delays can significantly affect project timelines.
Cost Categories to Budget For
Subdivision costs vary, but owners should plan for the following categories:
- Surveys: Feature/level survey, detail pick-ups, Work as Executed surveys.
- Planning and Reports: DA/CDC lodgement fees, planning consultant, engineering design, geotechnical investigations.
- Contributions and Bonds: Section 7.11 or 7.12 developer contributions, damage bonds.
- Civil Works: Earthworks, stormwater, retaining, driveways, service connections.
- Compliance and Registration: Certification fees, NSW LRS registration, legal costs for new titles.
Tip: Always prepare a contingency allowance. Unexpected service relocations or rock excavation are common cost blowouts.
Timeline Reality Check
A straightforward two-lot subdivision can take 6–12 months from feasibility to new titles. Larger or more complex projects may run 12–24 months. Typical breakdown:
- Feasibility and design: 4–8 weeks.
- DA assessment: 8–16 weeks.
- Civil works approvals (SWC): 4–8 weeks.
- Civil construction: 8–16 weeks.
- Subdivision Certificate and registration: 4–8 weeks.
Common Traps and How to Avoid Them
- Underestimating retaining wall costs: Retaining is often the largest single civil expense.
- Ignoring service depths: Shallow sewers or high water tables can make lots unbuildable without costly solutions.
- Assuming council timelines: Each council has different workloads and conditions.
- Not budgeting for contributions: Section 7.11 levies can be significant, especially in growth areas.
- Selling unformed lots without disclosure: Buyers may push back if pad preparation or drainage is unclear.
Where to Get More Information
How Keejen Construction Can Help
Subdivision succeeds when planning and construction are joined up. Civil engineering determines levels, drainage, and servicing, while construction delivers pads, roads, and infrastructure to standard. At Keejen Construction, our engineering and delivery teams work together to provide this end-to-end support.
We help landowners and developers by:
- Preparing sites with bulk earthworks and excavation.
- Constructing engineered retaining walls and drainage systems.
- Delivering access roads, pavements, and rural driveways.
- Coordinating with utility providers for seamless service connections.
With proven experience across Newcastle, the Hunter Valley, and the Central Coast, and backed by ISO-certified systems for quality, safety, and environment, we ensure subdivisions are built to last and compliant from the start.