The Cost of Subdivision
What is the cost of subdivision?
We get asked this question a lot, and it's really true – it's as long as a piece of string. Depending on the type of development you're doing, and what you want to get out of it, will influence how much you want to spend on it.
Knowing the costs and getting a reasonable idea up front is key to managing expectations. With subdivision, especially if you're going to be building a house as well, the profit you can expect will vary. We believe the process, if followed correctly and involving the right experts, will be worth it at the end.
A Simple Case Study
Let's examine a straightforward scenario:
An infill subdivision in an urban environment with one existing house on a section larger than 700m², with an installed driveway from the road and access available past the house to the rear.
Approximate Costs Breakdown
Item - Approximate Cost (excluding GST)
Our fee - $4,000 – $6,000
Surveying Fees - $15,000 - $20,000
Geotechnical Engineer - $5,000 - $7,000
Service connections* - $30,000
Council processing fees - $2,500 - $4,500
Development contributions** - $34,000 per new Lot
*Service connections include power, internet, and Council connections for water, wastewater, and stormwater
**Development Contributions shown are for Hastings District
Additional Costs to Consider
- Lawyers and conveyancing fees
- Lodgement fees with Land Information New Zealand
- Fencing/landscaping/driveways that might need to be removed or installed
**Total Approximate Cost: $100,000**
Is It Worth It?
In our opinion, absolutely! For context, most vacant urban lots in Hawke's Bay (between 350m² - 500m²) can sell for over $250,000 – potentially yielding a profit of $150,000+.
How Can Bay Planning Help?
The team at Bay Planning brings extensive experience in both urban and rural subdivision. We collaborate with a network of trusted experts, including surveyors and geotechnical engineers, to achieve your desired outcome.
We encourage our clients to view the Resource Consent process as an opportunity rather than an obstacle. Not every subdivision fits into a neat box – that's where our expertise becomes invaluable. We can work with you to achieve great outcomes on your property, whether it's an undersized subdivision or a multi-lot development.
Our Track Record
We have successfully prepared subdivision applications across:
- Hastings
- Napier
- Wairoa
- Central Hawke's Bay
- Tararua
- And beyond!
Our fee represents a small portion of the overall subdivision cost, but our involvement can significantly increase your asset's value and make the subdivision process worthwhile. Our experience helps you navigate the process efficiently and maximize your investment returns.
Ready to Start Your Subdivision Journey?
Whether you own a property you're looking to subdivide or are considering purchasing a property for development, get in touch with the team at Bay Planning. We're here to help turn your subdivision plans into reality.