What’s the difference between a Splitter & Subdivision?

Splitter vs Subdivision? 

Is a splitter better than a subdivision?

If you’re considering investing in property, you may have heard of two popular property investment strategies: splitter blocks and sub-division. While both strategies involve splitting a larger block of land into smaller ones, there are some key differences between them. In this blog, we’ll explore the pros and cons of each strategy, so you can decide which one is right for you.

The short answer: a splitter block is a property that already sits on two or more separate lots, so the lots exist and can often be sold or built on separately without a new subdivision approval. A subdivision creates new lots from one existing lot, which needs council approval and must meet the zone’s minimum lot size and other rules.

Updated October 2026: we’ve added a section on minimum lot sizes for subdivision in Victoria, softened the cost estimate for a subdivision application, and updated how to find splitter blocks in Stash.

Things to consider when looking at splitter blocks

1. Development approval is not required for a splitter, but it is for a subdivision.
2. Minimum lot sizes do not apply to a splitter, but they do to a subdivision.
3. The existing dwelling on the property may be protected from demolition or not be in a suitable position.
4. The size and shape of the existing lots cannot be changed.
5. Lack of infrastructure services can be a hurdle for development plans.
6. Finally, infrastructure charges should not generally apply to a splitter, but they usually do to a subdivision. Charges and exemptions vary by council, so confirm with your council before you buy.

It’s crucial to understand these differences when considering whether to invest in “splitter” blocks or sub-divisions, as they can have significant implications on the development process and costs. It’s always advisable to seek professional advice and thoroughly research the specific circumstances of each investment opportunity before making any decisions.

What is the minimum land size for subdivision in Victoria?

There’s no single minimum lot size for subdividing residential land across Victoria. Under the Victoria Planning Provisions, a minimum subdivision area can only be set in the schedule to the Low Density Residential Zone or the Neighbourhood Residential Zone (see Planning Practice Note 91):

• Low Density Residential Zone: each lot must be at least 0.4 hectares (4,000m²) where reticulated sewerage isn’t connected, or at least 0.2 hectares (2,000m²) where it is, unless the schedule sets a larger area.
• Neighbourhood Residential Zone: the council’s schedule may set a minimum subdivision area, and it varies from council to council. Some schedules set none.
• General Residential and other residential zones: there’s usually no fixed minimum. Lot sizes are assessed against the subdivision provisions and the neighbourhood character of the area.
• Garden area: in the Neighbourhood and General Residential Zones, a vacant lot under 400m² created by subdivision must set aside at least 25% of the lot as garden area (see Planning Practice Note 84).

Overlays, covenants and local policies can also affect what’s allowed, so check the planning scheme for your council on Planning Schemes Online or speak to a town planner or licensed surveyor. In Stash, the Planning Insights tab on a property shows the zone and, where the data is available, the Minimum Lot Size and Minimum Frontage. See Minimum lot size and zoning details.

Splitter Blocks

Splitter blocks refer to the process of dividing a single property title with multiple existing lots into individual property titles, with the aim of selling each property lot separately. The advantage of this strategy is that it can increase the value of the land, as smaller blocks can be more desirable and easier to sell than larger ones. Splitter blocks are often desirable where there is a high demand for land, such as inner-city suburbs or coastal regions and most importantly, a splitter does not need to go through the process of a development application as the property is already subdivided.

Pros:

• Increased value: By dividing a larger block of land into smaller ones, you can increase the value of the land overall.
• Flexibility: You can choose to sell each block separately or develop them yourself.
• Potentially lower development costs: Compared to sub-division, splitter blocks may have lower development costs, as they often require fewer approvals and infrastructure upgrades.

Cons:

• Lower profit margins: While splitter blocks can increase the value of the land, the profit margins may be lower compared to sub-division, as you are only selling smaller blocks.
• Potential zoning and regulatory issues: Some areas may have zoning or regulatory restrictions that prevent you from subdividing the land.

Sub-Division

Sub-division refers to the process of dividing a larger block of land on one lot and one property title into individual smaller lots, with the aim of developing each lot separately. The advantage of this strategy is that it can potentially yield higher profit margins, as you are able to develop each lot and sell them individually. In Queensland, a subdivision requires a Development Application for Reconfiguring a Lot (other states have their own subdivision permit process), which can take time and can cost thousands of dollars in council fees, consultant reports and survey costs (not to mention additional holding costs). Check your council’s current fee schedule and get quotes before you budget.

Pros:

• Higher profit margins: Sub-division can potentially yield higher profit margins compared to splitter blocks, as you are developing and selling each lot separately.
• Increased housing supply: Sub-division can help to increase the supply of housing in an area, which can be beneficial for both investors and the wider community.
• Potential for rental income: If you choose to hold onto the properties, you can potentially earn rental income from each lot.

Cons:

• Higher development costs: Sub-division can have higher development costs compared to splitter blocks, as it often requires more infrastructure upgrades and approvals.
• More complex process: Sub-division can be a more complex process compared to splitter blocks, as there are often more regulatory requirements and approvals needed.

Find Splitter blocks or development sites in seconds with Stash.

A development approval is not required for a splitter, but it is for a subdivision….

Splitter blocks are a great strategy for finding properties with investment potential. Stash flags properties that sit on more than one lot as Splitter, so they’re easy to find. In Search all properties (Find Prospects for real estate and property services accounts), click EXPAND LAND FILTERS and use Splitter Blocks to set the number of lots. Splitter block searching isn’t available yet in the ACT, NT and Tasmania. See Find off-market properties.

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Happy Stashing!