Rising land prices are driving an increase in subdivision of properties, with conveyancing companies reporting that they are working through weekends in order to keep up with demand.
Subdivision is a simple process when organised through a conveyancer in Melbourne, according to resident Steve Peterson, who sold off his backyard.
“We had this big backyard that we weren’t using, so we split the property into two titles with the help of a conveyancer, and sold it off to a property developer,” he said.
“They’re building a small house out the back, and with the money we were able to pay off our loans and take a holiday.”
The previous year has seen a record surge in land value, with many Melbourne suburbs enjoying growth of over ten percent on the previous year. Following unbroken upwards trends since recordkeeping began, many Australians are unable to afford the large properties enjoyed by previous generations.
In turn, homeowners with large backyards are taking advantage of the strong property market by selling their backyards to property developers.
This is a particularly appealing option to those with grown-up children, who no longer require the expanse of a large backyard.
Young families are among those most likely to purchase a house on a subdivided property.
Single parent Katrina Lewis, who has three children under five years old, is one such new owner of a unit of a subdivided block of land.
“I never thought I would be able to afford a house, but I think the places I was looking at were just too big,” she said.
“We don’t have much of a yard, we just have a small courtyard, which is not ideal but at least I am finally out of the rent cycle. It’s a modest place, but I am so glad it’s mine.”
The trend towards subdivision is not unique to Melbourne, property conveyancing professionals operate to subdivide properties in other cities with high land costs.