Buying guide
How much does it cost to subdivide property in NZ?
Subdividing could be a great way to profit from your property, but getting it done is not cheap.
Last updated: 7 November 2024
Thinking about subdividing your property? It could be a smart way to unlock some value, but it's not exactly a cheap or quick process. Here's a breakdown of what you can expect to pay when subdividing in New Zealand.
What's the average cost of subdividing in NZ?
The cost of subdividing can vary quite a bit depending on your situation, but on average, it will set you back around $153,075. Costs can differ based on things like your property's zoning, location, and how complex the project is. Here are some of the key factors that will affect the price:
- Surveying costs: Expect to pay anywhere between $7,000 - $15,000 for surveying, depending on your land’s specifics.
- Council fees: These will vary by region. For example, in Auckland, council fees for a subdivision can be around $35,000.
- Services and access: If you need to add things like water, power, or a driveway, the costs can add up quickly.
- Specialist reports: You’ll likely need experts like engineers, planners, and lawyers to get things sorted.
- Project management: If you're bringing in a professional to manage the process, factor in those costs too.
While the costs might seem hefty, it’s important to know exactly what you’re getting into. You’ll also want to consider that subdividing could reduce the value of your remaining section, so it’s a good idea to check out recent sales of similar properties to get an idea of how your subdivision might impact your land’s value.
Want to be a property developer? Read this before you get started.
Talk to an expert early in the process to ensure you're on the right track.
Can I subdivide my property?
The short answer is: it depends. Here’s what you need to think about:
- Zoning: Your property’s zoning determines the minimum size for subdivisions. For example, in Auckland, properties in single housing zones must have a minimum size of 600 sqm, while mixed housing urban zones can go down to 300 sqm. You'll need to check with your local council to see if your property qualifies.
- Land suitability: Is the land stable? Is it prone to flooding? You’ll need to make sure your land is suitable for a new build.
- Services: Does your property have access to power, water, and wastewater services? If not, you’ll need to factor in the costs of getting those connected.
- Access: Is it possible to build a driveway and ensure vehicles can access the new section?
The first step is to check your property’s zoning and see if it meets the minimum requirements for subdivision. It’s also a good idea to have a licensed surveyor take a look to confirm whether subdivision is feasible and guide you through the next steps.
Keen to subdivide and build? Here are your most affordable options.
FAQs — subdividing properties in NZ
1.How long does it take to subdivide a property?
The time it takes to subdivide depends on various factors, including council approval, surveyor work, and construction. On average, the process can take anywhere from 6 months to 2 years, depending on complexity.
2. What is the minimum section size I need to subdivide in NZ?
The minimum section size for a subdivision depends on your local council’s zoning rules. For example, Auckland’s single housing zones require a minimum section size of 600 sqm, while other zones may have different requirements. You’ll need to check with your local council for specific regulations.
3. Do I need to build on the new section right away?
No, you don't have to build immediately on the subdivided section. However, it’s important to ensure the section is suitable for future development, including access to utilities and services. Want to see how much you could afford? Check out our guide on how to finance a new build.
4. What happens if my subdivision plan is rejected?
If your subdivision application is rejected, you can either revise the plan to meet the council’s requirements or appeal the decision. It’s a good idea to get expert advice before resubmitting to avoid unnecessary delays or costs.
5. Can I sell the new section once it’s subdivided?
Yes, you can sell the new section once the subdivision process is complete and all necessary approvals are in place. Just make sure the property is ready for sale, including any required services and infrastructure. Learn how to sell land on Trade Me.
6. Do I need insurance during the subdivision process?
Yes, it’s important to have insurance during the subdivision process. You’ll need coverage for any construction or development work, as well as for any risks associated with the land. It’s a good idea to speak to an insurance provider who can offer advice tailored to the subdivision process, covering things like public liability, damage during construction, and protection for the new sections once they are created. Find out how much this insurance could cost here.
*We hope this article has provided some helpful information. It's based on our experience and is not intended as a complete guide. Of course, it doesn’t consider your individual needs or situation and it is not financial advice. If you are considering a subdivision make sure you speak to a qualified expert for advice first.
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