What does Subdivision mean?

Subdivision means dividing existing land in to separate smaller houses or units has seen increasing popularity in New Zealand. For some people it could mean an extra source of income, downsizing after their children have moved out or merely a want for a simpler life.

If you are acquiring or buying a new piece of land, then you might also want to subdivide to maximise the investment of your property. You need

The concept of subdividing land might feel like a simple one but understanding the process can be a daunting task. There are many factors involved when subdividing even a simple piece of land into other dwellings. There are several risks, a lot of documentation, consents, processes, engineers, designers, builders, electricians, plumbers, waterproofers etc that are required to work cohesively as a team. In addition to that, there are suppliers and retailers for all the material you might need to carry out the project. Most people hardly have the time to manage and organise this process so you would also require a project manager.

As a landowner you should know all the risks involved, consents required, budget involved and especially the process behind subdividing your land.

We have developed this thorough guide on what really goes into subdividing your land.

In this Article:

1. 4 main reasons for subdividing land NZ
2. Feasibility of subdividing land NZ
3. Preliminary research, complexity of your project and possible risks for subdivision 
4. When Subdivision goes wrong and how to avoid them
5. Subdivision Auckland Costs explained

4 Main reasons why people consider division in Auckland

Increase the marketability of your land

Its is important to understand what is happening in the housing marketing and your intention to subdivide. Some people subdivide by demolishing a prior larger home on a piece of their land and replace it by building smaller units or townhouses. This also allows the homeowners to sell individual smaller homes easily as compared to selling a large house which previously may have existed on the land.

Downsizing from a larger home into a smaller home in the same land

Whatever may be the reason, many people do downsize into smaller homes. They might not however want to part with the location of their property. This spurs some families to demolish the existing home and subdividing the land and making two homes on the same land. They could then live in one house and rent the other house for an extra income the other or sell it altogether.

Making their old home into their dream home

Some people might demolish an older home on their property and build a home that is more suited to their family’s taste and dynamics. They might subdivide the land to create a main home and a guest house.

Making use of unused space on their property

Building another dwelling in your unused large garden or driveway is quite an popular reason to subdivide your land. That unused space could either be another source of income or to increase your own comforts.

How feasible is it to subdivide your land? Is it possible? + Neighbourhood ordinances

Not all homes in Auckland are zoned for subdivision. Before you get a professional to discuss your plans for subdividing, you should check whether your property is zoned for subdivision. The Auckland council provides a tool where you can key in your address and it shows whether your house is zoned for subdividing (https://unitaryplanmaps.aucklandcouncil.govt.nz/upviewer/)

According to Auckland council your property can be zoned as follows for subdividing:

• Subdivision in a single house zone
• Subdivision in a mixed housing urban zone
• Subdivision in a mixed housing suburban zone
• Subdivision in a terrace housing and apartment buildings zone

There are separate guidelines for each type of zone and they need to be followed when you subdividing your land. We have included a brief guideline for each zones in this article so you are able to get a general idea on how the guidelines differ for each zone.

Single house zone

Single house zones are homes that are zoned in an area where any dwelling needs to be complied in its exterior to the general character of the neighbourhood. For example, you cannot build a dwelling with looks very modern in style in a historic neighbourhood.

Subdivision guideline for single house zone (credit to Auckland council guideline):

• To create a new lot, each lot must have a minimum size of 600 square meters.
• Each site can only have one dwelling
• If you want to build a sleepout or another minor dwelling which is detached from the

main house, then your minor dwelling (sleepout etc) will also require to meet the minimum 600 square meter of size. This means that overall, the land must be a minimum of 1200 square meters.

• You must consult with the Auckland council whether your zone has any restrictions related to your zone
• Other constraints for your zone such as natural hazards also need to be checked.

Mixed housing Urban zone

This is a high density construction zone where you can build up to a 3 storey house. Each lot needs to have a minimum of 300 square meters for this zone. The Auckland council website states that ‘you will require a comprehensive land use consent’ before you subdivide your land (https://www.aucklandcouncil.govt.nz/building-and-consents/resource-consents/types-resource-consents/subdivision-of-property/check-subdivide-property/Pages/subdividing-mixed-housing-urban-zone.aspx)

Subdivision in a mixed housing in a Suburban home

According to the Auckland council website, this is the most widespread zoning in Auckland. It features a dwelling which is away from the lot’s boundary which means that the house is surrounded by landscaping. It mostly has one or two stories. Each new lot has to have a minimum of 400 square meters for this zone. Just like mixed housing urban zone, you will require a comprehensive land use consent before you subdivide your land.

Terrace housing and Apartment zone

This is a high intensity zone where you are allowed to built 4 to 5 stories as terrace housing or apartments. The minimum size of the new lot must be 1200 square meters. It also required a comprehensive land use consent before subdividing can begin.

Feasibility, Preliminary research, Complexity, and Possible risks for Subdivision NZ

People often think about subdividing land as a thing which is only common amongst real estate developers. This however has changed dramatically in the last few years as more people are trying to subdivide their own pieces of land. Subdividing your land can however be costly which means that you have to do your due diligence. Whether you are planning to subdivide your own land or are potentially thinking about acquiring a new land, there is also risk that the subdivision is not possible.

There are a lot of consents and information that you will have to know before you can begin subdividing your land. The risks and technicality involved in subdividing your land which makes it important that you consult with a professional subdivision company rather than just a builder. Most subdivision companies will have all the professionals on board who can carry out the feasibility of subdividing your land.

Once you have done your feasibility test, the next step would be to assess the complexity of your project. The complexity of your project will affect the time, money spent, expertise required and consent process greatly. Some common factors that affect the complexity of your project:

1. The size of your project:

   Size of the project does not always refer to the actual size. For example, subdividing a flat piece of land into 4 simple houses or a larger land into 8 different houses will have the same complexity. However, building 4 storeys building in a small piece or land will be infinitely more complex. Whatever the complexity of your project, it is always advisable to employ professionals to carry out your project. The risks of doing a DIY job is very high.

2. Public road and Infrastructure: When any infrastructure must be built, it makes the project a lot more complex. If your piece of land does not have access to a public road or vehicle access, then the consents and professionals required becomes more complex.
3. Wastewater and Storm water: if there is no existing storm water system then you will have to employ architects to design a storm water system which will then need to be approved by the council. The same goes for your wastewater system and both these systems must be designed by certified architects.
4. Complexity of your land: Not all land in Auckland is flat and any land that is on a mountainous or sandy terrain will have added complexity when subdividing. Suburbs like Piha in Auckland is an example of complex terrains for subdividing.
5. Restrictions and ordinances of your location: There are many neighbourhood ordinances and restrictions in place for your location. We recommend getting advice or lawyers as well as the council before you start the process of subdivision or acquire a piece of land. An example is the ordinances in place for subdividing in a single house zone in Auckland. You can only build houses whose exterior imitates the design of houses in that neighbourhood.

When subdivision goes wrong

 We cannot emphasise enough the importance of subdividing land with a trusted and experienced subdivision companies with qualified professionals. We have compiled a list of things that could possibly go wrong if not subdivided without carrying out the due diligence.

1. Buying land without being aware of deed restrictions: If you are buying land with the intention to subdivide in the future then we recommend consulting a lawyer about any hidden deed restrictions that might affect your plans.

2. Not calculating the costs of infrastructure required: Before acquiring land, its good to get a quality surveyor to check all the additional infrastructure that will be required before you can subdivide. Not every infrastructure like a public road is visible on sight as infrastructure like the need for waste pipes etc can only be determined after the site has been surveyed.

3. Buying land before understanding its residential zoning: Different residential zones as mentioned above have differing building restrictions. For example you might be thinking of building  an architecturally modern home, but had acquired a land in a single housing zone with a historic character would mean that your exterior will be able to have an overly modern look.

4. Cost of the actual built: Get in touch with professional building companies to see what the approximate cost would be for the actual design and building of your dwelling. People often underestimate the cost of building a home as most people do not build more than 1 home in their life.

5. Doing a DIY job with few professionals: There are too many factors, technicalities, council permits and hoops to jump when you are subdividing your land. We recommend professionals with knowledge and experience to carry out the entire process to avoid budget blowouts or spending too much money later on to fix issues that may go wrong.

How much does subdivision cost?

The Auckland council states that ‘dividing any residential property into two or more lots can range significantly especially due to need for infrastructure. Subdividing two similar lands in terms of size in two different locations of Auckland can prove to cost very different from one another. Every subdivision project will have its unique challenges in terms of residential zoning, infrastructure needed and the complexity of the land itself will contribute greatly to the costs.

The Auckland council website states that subdividing an average lot into two lots can cost between $120,000 to $150,000 in council fees and consents (https://www.aucklandcouncil.govt.nz/building-and-consents/resource-consents/types-resource-consents/subdivision-of-property/check-subdivide-property/Pages/default.aspx).

The costs included in this would include consent processing fee, driveways, planners, lawyers, engineers, development contribution feels, land information New Zealand fees, engineers, planners and surveyors. This is before you even employ someone to build your home. 

 

Before you think of subdivision, you should consider why you are subdividing? Is it as an investment to sell homes? Is it to make a couple of houses for your self and the family or is it to rent one property and live in one? The reason to subdivide will also mean that you might have to apply for additional resources and consents.