The Benefits of a One-Into-Two Property Development in Brisbane

Brisbane contains thousands of older homes positioned on larger blocks that may no longer represent the best use of the land. For suitable properties, subdividing one existing lot into two new lots and building two new homes can unlock considerable value while adding much-needed housing to established suburbs.

A one-into-two development is also generally more manageable than a townhouse project or larger residential subdivision, making it an attractive option for homeowners, investors and first-time developers.

However, owning a large block does not automatically mean it can be subdivided. Zoning, overlays, frontage, access, services and construction costs must all be investigated before committing to a project.

1. Unlock the underlying value of the land

In many established Brisbane suburbs, the land can represent a substantial proportion of the property’s value.

An older dwelling may occupy a block capable of accommodating two appropriately designed homes. Subject to planning approval and a successful feasibility assessment, subdividing the property can allow the owner to transform one asset into two independently titled properties.

The development’s potential value comes from creating two finished products that may each appeal to buyers wanting a new home in an established suburb.

2. Create multiple development and exit options

A one-into-two project can provide several potential strategies depending on the owner’s financial position and objectives.

These may include:

• Building and selling both homes

• Selling one home and retaining the other

• Living in one home and selling the second

• Retaining both homes as rental investments

• Completing the subdivision and selling the vacant lots

• Selling one lot to help fund construction on the other

Not every strategy will work for every property. Tax, finance, planning and market conditions must be considered, but having two separate lots can provide greater flexibility than holding a single property.

3. A more approachable entry into property development

Compared with larger townhouse or multi-residential projects, a one-into-two development can be easier for a new developer to understand and manage.

There are fewer dwellings, fewer individual buyers and generally fewer design interfaces. Finance requirements and total project exposure may also be lower than for a larger development.

The process can still involve numerous moving parts, including town planning, surveying, engineering, demolition, civil works, services, plan sealing and construction, but the overall scale is often more suitable for a homeowner or small developer completing their first project.

4. Meet demand for new homes in established suburbs

Many buyers want a modern, low-maintenance home but do not want to move into a distant greenfield estate.

A carefully planned one-into-two development can deliver new homes close to existing schools, employment, transport, shopping and established community infrastructure.

Well-designed homes on more compact lots can appeal to:

• Young families

• Professional couples

• Downsizers

• Interstate buyers

• Investors

• Buyers wanting a new home without maintaining a large backyard

Brisbane City Council acknowledges that continued population growth is placing pressure on housing supply and that the city will require a broader range of housing choices as its communities change. Read more about Brisbane’s housing supply

5. Spread certain project costs across two homes

A development will include costs that do not relate solely to the construction of the houses. These can include professional consultants, demolition, service investigations, authority applications, surveying and some site-establishment expenses.

Creating two new homes can allow some of these broader project costs to be distributed across two saleable properties rather than one.

This does not mean a subdivision is automatically profitable. Civil development costs across South East Queensland continue to rise, making accurate allowances for drainage, retaining, earthworks, utility connections and authority requirements increasingly important.

6. Make better use of existing infrastructure

Infill development creates additional housing within suburbs that already have roads, schools, shops, public transport and established utility networks.

This is one reason appropriately designed small-scale development can play an important role in Brisbane’s housing future. Instead of relying entirely on new outer-suburban estates, infill development can introduce additional homes into existing communities.

New connections or infrastructure upgrades may still be required, particularly for sewer, stormwater, water, power and telecommunications. These requirements should be investigated during the feasibility stage.

7. Use custom home design to maximise the site

Following subdivision, the resulting lots may be narrower or have site-specific constraints that are not suited to a standard project-home design.

A custom design can respond to:

• Lot width and orientation

• Natural light and ventilation

• Privacy between the two homes

• Vehicle access and garage positioning

• Sloping land

• Overlooking requirements

• Outdoor living areas

• Streetscape presentation

• Target buyer expectations

Designing both homes together also provides an opportunity to create complementary façades without making the houses appear identical.

Is every large Brisbane block suitable?

No. Before purchasing or developing a property, several matters should be investigated.

These include:

• Zoning and minimum lot requirements

• Traditional building character or heritage constraints

• Flood, overland flow, bushfire and biodiversity overlays

• Existing and proposed lot frontages

• Sewer and stormwater availability

• Easements and underground infrastructure

• Site slope, retaining and earthworks

• Significant trees or vegetation

• Vehicle access and driveway requirements

• Demolition restrictions

• Expected construction and civil costs

• Local resale values and buyer demand

A property can look ideal from the street but become unviable once drainage, services, retaining or planning restrictions are properly assessed.

Why feasibility should come first

The success of a one-into-two project is determined before construction begins.

A detailed feasibility should consider the total cost of acquiring and developing the property, including:

• Stamp duty and purchasing costs

• Consultant and approval fees

• Demolition

• Civil works

• Infrastructure charges

• Utility connections

• House construction

• Finance and holding costs

• Sales and marketing costs

• GST and potential taxation

• A suitable contingency allowance

These costs can then be assessed against conservative estimates of the completed homes’ sale values.

Feasibility figures are estimates rather than guarantees. Approvals, construction pricing, interest rates and property values can change throughout a project, so allowances should be realistic rather than based solely on the best possible outcome.

An end-to-end approach to Brisbane development

Yellowwood Building Group can assist with the complete development process, from initial site feasibility and due diligence through to development approval, civil and engineering coordination, subdivision, plan sealing, custom home design and construction.

Having the development and building stages coordinated by one team can help identify design, servicing and construction issues earlier, before they become expensive problems on site.

If you own a potential development property or are considering purchasing one, speak with Yellowwood Building Group about assessing whether a one-into-two development may be suitable.

Every property is different. All development opportunities remain subject to planning requirements, authority approval, site conditions, finance, taxation advice and detailed project feasibility.