What is a ‘Splitter Block’ and why are they some of the most sought after properties in Australia? In this short report, we will explain what a Splitter Block is, examine the benefits of this property type, and seek to identify if any of these ‘golden blocks’ exist in the Inner and Middle Brisbane areas.
What is a ‘Splitter Block’? A Splitter Block, simply put, is a single property title with two existing lots.
What Are the Benefits of a Splitter Block?
There are many benefits associated with Splitter Blocks, hence their Golden Block moniker. One of the main benefits is removing the need to subdivide a new property, saving yourself much hassle and money. Subdividing property is when a property is split into two or more smaller lots. During this process, you must pay council contribution fees, which are similar to a tax or levy. In Brisbane, this amount is close to $30,000 (for every extra lot that you create). However, with a splitter block you actually have two lots on one title, this means you are not subject to that tax, thereby saving yourself close to $30,000 in feasibility. Furthermore, Splitter Blocks are exempt from minimum size lots, whereas subdivisions are not.
Splitter Blocks offer an extremely unique property investment opportunity. As such, Place Advisory has undertaken an analysis into Brisbane’s Inner and Middle rings and their current Splitter Blocks offering.
Splitter Blocks in Brisbane’s Inner and Middle Ring
To begin this analysis, we will first look at the suburbs that are 10km or less from Brisbane’s CBD. Looking at the table below you can see that the top five suburbs offering the largest number of Splitter Blocks within Brisbane’s Inner and Middle rings are (in order): Annerley (337), Coorparoo (298), Camp Hill (285), Norman Park (224) and West End (201). Suburb
Splitter Blocks in Brisbane’s Inner and Middle Ring - 800m2 or Larger
Additional analysis was conducted into the suburbs that are up to 10km from Brisbane’s CBD and have blocks 800m2 or larger. Looking at the table below, you can see that the top five suburbs (in order) are: Camp Hill (212), Norman Park (205), Coorparoo (182), Bardon (160) and Annerley (149).
As you can see, there is some cross over between the two tables. Both tables feature Coorparoo, Annerley, Camp Hill and Norman Park. The difference between the two lists is Bardon and West End. Looking only at the figures, it appears that in total there are more Splitter Blocks within West End (201) then there are in Bardon (174). However, if you were to look at blocks that are 800m2 or more, Bardon’s offering is much higher (Bardon 160, West End 39). This is most likely due to the average block size available within West End versus Bardon.
Some interesting insights of the splitter blocks 800m2 or above is that only 19% of these blocks are investor owned, this means that the remaining 81% are owner-occupiers. This gives further evidence that this is not just an investor avenue but a possible avenue for owner-occupiers alike.