The Perth Property Show with Trent Fleskens!

On this episode Trent is

talking about Subdividing Your Property in Perth, Western Australia: A Profitable Endeavor?

If you’re a homeowner in Perth, Western Australia, you’ve likely considered the idea of subdividing your property as a means to tap into the potentially profitable real estate market. In a recent property podcast, Gerald from Waikiki posed a question that many Perth homeowners are likely pondering: Is property subdivision still a profitable venture in the region? In this blog post, we will delve into the insights shared in the podcast and provide guidance on how to embark on a successful subdivision journey while incorporating strong SEO practices to boost your website’s traffic and inquiries from potential clients.

For those contemplating property subdivision in Perth, there’s good news – there are abundant resources available to guide you through the process. The podcast recommends starting with a review of specific episodes to gain a solid foundation on property subdivision:

  1. Episode 62 – Introduction to Subdivision
  2. Episode 68 – Laying Out Subdivision Costs

These episodes feature David Gilbert, the development manager at Strategic Property Group, who is an authority on small-scale property subdivision in Western Australia. It’s crucial to listen to these episodes as they offer valuable insights that remain relevant today.

The Subdivision Process:

To understand the entire subdivision process in Perth, you should also consider Episode 74 of the podcast. In this episode, you will learn about applying for titles through the subdivision process, which is a pivotal step in the journey. By following these educational resources, you’ll be well-equipped to start your subdivision venture.

Is Property Subdivision Still Profitable in Perth?

Gerald’s question about the profitability of property subdivision is addressed with a resounding “yes.” Subdivision is inherently a profitable endeavor because it helps alleviate the chronic housing supply issue in Western Australia. By turning one property into two or more, you play a part in addressing this critical challenge.

However, the key to ensuring profitability in property subdivision lies in doing thorough homework and due diligence. The process includes identifying the initial property at the right price, understanding the costs associated with the specific conditions and requirements of your property’s location, and estimating the potential sales values of the subdivided properties. It’s essential to have the right team around you, including professionals who can help you identify and mitigate risks and costs throughout the subdivision process.

Property subdivision’s profitability can vary significantly based on the location, the property, and the current market conditions. The West Australian Planning Commission imposes different conditions and costs for every property, suburb, and council. Some subdivisions may cost $40,000 to $60,000, while others can exceed $100,000. You must research and analyse these costs to determine if the market will accept the price you can pay based on these expenses.

Adding a Layer: Development

Beyond property subdivision, many individuals consider developing new structures on the subdivided land. For example, you might split one block into three and then build three houses on top of it. However, in recent years, building costs have surged, potentially impacting the profitability of small-scale development projects. The rising costs are partly due to a scarcity of tradespeople in the industry.

While there are indications that the market might be evolving to make development more profitable, it’s essential to conduct feasibility studies and be cautious about pricing in future market gains. Ultimately, the profitability of development projects in Perth depends on a multitude of factors, including property values, labor costs, and market conditions.

Future Opportunities

As the value of properties continues to rise in Western Australia, and labor costs potentially stabilise, there will likely be more opportunities for profitable property subdivision and development. The key is to stay informed, conduct thorough research, and avoid becoming the last investor caught off guard if market conditions shift.

Property subdivision in Perth, Western Australia, remains a potentially profitable venture. By learning from available resources, conducting diligent research, and staying attuned to market conditions, homeowners and investors can embark on a successful subdivision journey. As you consider these opportunities, remember the key to profitability lies in knowledge and foresight. Stay informed, be cautious, and seize the right opportunities when they arise.

If you’re looking for additional guidance on property subdivision in Perth or seeking expert advice, visit our website @strategicpropertygroup.com.au for a beginner’s guide and other valuable resources. Also contact us at Team Rash for any further real estate enquiries. We hope this article helps you make informed decisions and drive profitable outcomes in your property endeavors.