How Much Does It Cost to Subdivide Land?
Understandably, before starting the land subdivision process, land owners want to know what the process will cost. There is no blanket fee for all subdivisions as each project varies and includes different factors that can affect the overall cost.
Here, the subdivision specialists at Tararua Surveyor have summed up the costs involved with land subdivision to give you a rough idea. To discuss how much your particular project in Wellington, Upper Hutt, Lower Hutt, Levin or the Kapiti Coast will cost, give us a ring.
Main factors that influence the cost of your land subdivision include:
Location, Size and Type of Land
Where you are in NZ will affect the cost of your land subdivision because different districts and regions have varying Council fees and specialist service fees. This means that the cost and fees involved with subdividing land in Wellington will vary to that of Levin. The size and type of land subdivision will also affect the cost.
Resource Consents
Applying for a resource consent is an important and complicated part subdivisions. It is an involved process that includes site plans, AEEs (Assessment of Environmental Effects), the identification of affected people and more. It is not easy to navigate for first-timers.
While the use of a professional will cost you, subdivision consultants know the process inside and out. Knowing exactly what is needed to get your consent granted will save you time, stress and even money in the long term.
Development on your Site
The design of the planned subdivision and installation of services such as power, water and access ways is at the heart of a land subdivision and will make up a decent chunk of your costs. Simpler subdivisions require the work of land surveyors and planners while more complicated ones can also involve engineers, Iwi and other specialist services such as drainlayers and construction companies..
Council and LINZ Fees
Your district or regional Council sets out fees for various parts of the subdivision process, including a fee for the resource consent application and the developmental impact, and possibly other Council-related costs. New titles must be lodged with LINZ (Land Information New Zealand), along with a filing fee and legal fees related to lodging the title.
Estimated Total Cost
As a very rough estimate, it’s not unusual to pay anywhere from $50,000 to $100,000 for a straight-forward subdivision, including issuing new titles. While you can use this wide range as a guideline, there are many factors involved in land subdivision, so if you are keen to go forward, it’s best to talk to land subdivision specialists for a more accurate estimate. You’ve also got to take into consideration how much you’re likely to pay a building company for your new build on the subdivided land.
If this seems like a lot of money, keep in mind that it is normal for development costs to make up one-third of a section price. This means that spending around $100,000 on a new section that will then sell for approximately $300,000 is well within the normal range.
Talk to a Subdivision Specialist
Hopefully this guideline has given you an idea of how much subdividing land can cost. For more detailed estimates of your particular project, speak to the team of surveyors and land specialists at Tararua Surveyors.