An Introductory Guide to Residential Property Subdivision in Auckland
Dividing your residential property into separate lots can be an excellent way to unlock its development and value potential.
However, subdivision in Auckland can be complex due to regulatory requirements, zoning rules, and logistical issues.
In this guide, we'll walk you through a summary of the residential subdivision process and answer some common questions, all to help you navigate the process more successfully.
What is Property Subdivision?
Subdivision involves dividing a larger piece of land into two or more smaller parcels, each with its own legal title. The types of titles common in Auckland are:
Fee Simple: This is the most common form of subdivision where an existing property is divided into two or more sections.
Unit Title: This gives individual titles to housing units over an existing piece of land. The units typically share common property such as driveways and gardens. This is the most common title for apartments. These titles are subject to additional requirements under the Unit Titles Act 2010.
Cross-lease: While less desirable today, a lease is created over each unit, called a "flat," with each flat owner having shared ownership of the property. It is more common to apply to Auckland Council to convert a cross-lease to fee simple than create a new cross-lease.
Zoning and Subdivision Rules in Auckland - Residential
In Auckland, the zoning of your property can influence the subdivision process. Each zone has unique requirements and guidelines that you must follow.
Below is a summary of the different requirements and limitations for each zone. The source of this information is Chapter E38 - Urban Subdivision of the Auckland Unitary Plan (Operative in Part) (“AUP(OP)”).
You can find out the zone of your site by searching on the AUP(OP) maps.
Residential - Single House Zone (SHZ) - Link to Zone
Intended for low-density areas with a single house on a full site. More than one dwelling is a non-complying activity, and generally not supported by Auckland Council.
Minimum net site area size for a vacant lot subdivision is generally 600 square meters, but it varies in special areas.
Allows for minor dwellings of up to 65 square meters, however these generally cannot be further subdivided.
Residential - Mixed Housing Suburban Zone (MHS) - Link to Zone
This zone bridges the gap between the Single House and Mixed Housing Urban zones.
Minimum net site area size for vacant lot subdivision is 400 square meters, with each site needing to be sufficient in dimensions and clear of hazards and other constraints in order to accommodate a building within a specified envelope.
Zone allows for up to three dwellings without resource consent subject to design and compliance with zone standards.
If you propose a subdivision around dwellings that are either existing or proposed, you are not subject to the minimum net site area requirement.
The incorporation of the Medium Density Residential Standards (MDRS) into the AUP(OP) will see most areas of Auckland that are subject to this zone converted into the Residential - Mixed Housing Urban Zone.
Residential - Mixed Housing Urban Zone (MHU) - Link to Zone
Intended for areas with a mix of housing types.
Minimum net site area size for vacant lot subdivision is 300 square meters, with each site needing to be sufficient in dimensions and clear of hazards and other constraints in order to accommodate a building within a specified envelope.
Zone allows for up to three dwellings without resource consent subject to design and compliance with zone standards.
If you propose a subdivision around dwellings that are either existing or proposed, you are not subject to the minimum net site area requirement.
If you propose a subdivision around dwellings that are either existing or proposed, you are not subject to the minimum net site area requirement.
Residential - Terrace Housing and Apartment Building Zone (THAB) - Link to Zone
This is the most intensive residential zone, aimed at accommodating high numbers of people, and taller buildings.
All dwellings in this zone require resource consent and are generally subject to increased scrutiny by the council of their design, layout and appearance. The incorporation of the MDRS into the AUP(OP) will see up to three dwellings become a permitted activity, and no longer require resource consent, subject to compliance with zone standards.
Minimum net site area size for vacant lot subdivision is 1200 square meters. It is rare to see vacant lot subdivision in this zone, except in greenfield areas where large land parcels are being divided into smaller sites ready for development.
If you propose a subdivision around dwellings that are either existing or proposed, you are not subject to the minimum net site area requirement.
Note that the above is only a high-level summary of requirements for each zone. You can also read our more technical guide on subdivision in the urban areas of Auckland.
Subdivision Costs and Fees
The costs associated with subdivision can vary significantly due to numerous factors. In general, the average two-lot subdivision in Auckland may cost around $120,000 – $150,000, covering costs like:
Consent Processing Costs
These are fees that the Auckland Council charges for processing your subdivision application. Costs can vary based on the complexity and scale of your subdivision.Development Contribution Fees
As part of your subdivision, you may be required to pay development contributions to the Auckland Council. These fees help fund infrastructure needed to support development in the city. Use the development contribution fee estimator provided by Auckland Council to calculate an estimate of the fees that will apply to your subdivision.Infrastructure Connections
You'll need to budget for connecting the new lots to necessary services such as water, power, and telecommunications. Depending on the site, you may also need to upgrade existing pipes or establish new stormwater or wastewater drainage.Driveways and Access
Creating new access points, including driveways and possibly footpaths, is a significant part of subdivision costs.Professional Fees
Subdividing property requires the input of various professionals, including surveyors, planners, lawyers, and engineers. Their fees will constitute a considerable portion of the total costs.Land Information New Zealand Fees
Once your subdivision is complete, you'll need to apply for a Record of Title from Land Information New Zealand for each new parcel of land. There are associated fees with this process.
Note that the resource consent deposit costs with Auckland Council and other local authorities vary depending on whether other consent requirements apply, for example, land use consents for constructing dwellings, or a need for a groundwater permit due to excavation.
Other costs above can vary significantly depending on the site's specific circumstances. Remember to account for these potential variances in your budgeting and planning.
Understanding the Subdivision Process
Engaging a licensed surveyor can help you better understand the overall costs, timeline, and processes involved in subdivision. Here are the key steps you should anticipate:
Initial Assessment
Engage a licensed cadastral surveyor to assess your property's potential for subdivision. They'll consider zoning, site-specific constraints, potential hazards, and the requirements for new or upgraded utilities and infrastructure.Pre-Application Guidance
It can be beneficial to get pre-application guidance from Auckland Council to help you understand potential issues and complexities. This guidance can help you refine your subdivision proposal and prepare for the application process.Subdivision Consent Application
You'll need to apply for a subdivision consent with Auckland Council. This application will need to detail how you intend to subdivide your property and must comply with the AUP(OP) rules and any specific zoning conditions. Your surveyor can help you with much of this process, though it is very often helpful to have a planner on board, depending on the complexities of your proposed subdivision and development. Planners are often skilled at being able to project manage between numerous experts.Detailed Survey Plan
Once you have a subdivision resource consent, you will need to prepare and submit to Auckland Council a detailed survey plan. This outlines the exact boundaries of the new lots. Your surveyor will assist in creating this plan and obtaining a s223 RMA certificate from Auckland Council.Infrastructure Installation
With consent granted and a detailed survey plan approved, you can begin works. This includes installing necessary services such as water, wastewater, power, phone, entrances, and driveways.Apply for s224c Certificate
After all physical works have been completed, you apply for a s224c RMA certificate from Auckland Council. This certifies that you've met all conditions of your subdivision consent. For those that you haven’t met, these will usually be subject to bonding, completion certificates, or a consent notice.Obtain Record of Title
The final step is to lodge your approved survey plan and s224c certificate with Land Information New Zealand (LINZ). They'll issue new Records of Title for each new parcel of land. This document is crucial if you plan to sell the subdivided lots separately.
Remember, subdivision can be a complex process, and professional advice is essential to navigate it smoothly.
Each property is unique, and specific steps and requirements may vary based on your property's individual characteristics and the AUP(OP) rules.
Summing Up
Subdividing your property can be a complex, time-consuming, and expensive process. But, with the right information and professional advice, it can be a worthwhile investment. If you're considering subdivision in Auckland, it's crucial to understand the process, costs, and potential hurdles involved.
You can get in touch with us if you have any questions regarding process, and we’d be happy to help.
