Understanding property development: What is subdivision & strata?

If you’re curious about the benefits of property development, a good starting point is to familiarise yourself with the options available to you.

Read on to learn all about subdivision and strata – what they are, who the best rear strata builders and house behind a house builders are, and how they can help you unlock the profits of property.

What is subdivision?
A subdivision is a parcel of land divided from a larger area, with the intention of creating one or more new properties developed independent of each other. Development of subdivisions is often driven by the need for affordable, fast housing, and can be very lucrative as it maximises a property’s build potential.

To develop a property, you must first obtain a zoning permit from your local council. The zoning will determine the types of subdivision options at your disposal. Here are the most common types of development.

House Behind House (Perth)

If you’ve got a large block with the right zoning (and you’re happy to stay put in your home) subdividing your block and building a house behind a house (Perth) could be a great investment opportunity.


Here your zoning permits the development of two properties, meaning you can build two dwellings (either one behind the other, or side by side).


A step up from duplex sites - the zoning permits you to build three houses on your lot, giving you more options.

Grouped Housing development
An excellent option if you’re looking to maximise your block’s space with three or more units.

When exploring your subdivision options, you are likely to come across the term ‘strata’. But what exactly is it?

Strata (also known as Strata Title) is an Australian innovation in property law that has set the standard internationally. It was introduced in 1961 to attribute legal individual ownership of the ‘lot’, as well as shared ownership of the remainder of the property called ‘common property'.


Units, apartments, townhouses etc., as well as car bays, garages, storerooms are part of the ‘lot’, and are shown on the title as being owned by a lot owner. 

Common property

Common areas on the land that are not part of the strata lots (roofs, visitor parking, common stairwells, driveways, recreational facilities etc.) are part of what is called common property. All owners must pay to maintain the common areas through a levy payment system (strata fees).


Now that you know more about subdivision and strata titles, you can begin exploring your next options in property development. Talking to an experienced developer is a logical next step, as they can walk you through the various processes in layman’s terms.


Summit Projects are Perth’s leading rear strata builders and house behind a house developers. As the most experienced property development team in WA, they can help you navigate subdivision and strata titles with ease, leaving you perfectly positioned to commence the best value development solutions around.


Contact Summit Projects to learn more today.


Disclaimer: The information within this article is general information only and it does not constitute advice or recommendation. It does not take into account your financial situation, investment objectives or personal circumstances. Before making a decision about developing your property, you should seek independent financial, legal and taxation advice.

Strata Subdivision Property Development

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