Beyond the Splitter Block: What Most People Miss About Development Potential

“Could I do something with this block?” It’s one of the questions I hear most often from developers and investors, and it’s one of my favourite parts of the job. As a buyer’s agent with a background in valuation and construction, that combination shapes how I search; it’s not just about finding a block that’s for sale, it’s about knowing what to look for and what to look past.

Say “development potential” to most people and they hear one thing: split the block in two. Fair enough, that’s a real outcome, and often a good one. But it’s also the most obvious play in the book, and by the time an owner or agent has spotted it, so has everyone else bidding at auction. The more interesting sites usually sit a layer deeper, in the kind of properties most buyers walk straight past because they don’t fit the mental picture of a “development site.”

Start with the block, not the house

When I’m scoping a site for a client, the existing house is usually the least important part of the equation. What matters is the land: its size, shape, slope, orientation, zoning, and how much of it the current improvements actually use. A tired old Queenslander on a large, well-positioned block can carry far more value in what could replace it, than what’s standing on it today.

Some of the fundamentals that shape a search:

• Land size – most councils set minimum lot sizes for subdivision, so this is the first filter that rules a site in or out

• Frontage – a narrow frontage can cap subdivision options even when the total area stacks up on paper

• Slope and shape – steep or irregular blocks can push construction costs up sharply, and a fall in the wrong direction can make services connections difficult or uneconomic

• Orientation – north or south facing rear yards tend to carry more value for future dwellings than east or west

• Easements and overlays – a flood, bushfire, or infrastructure overlay sitting quietly on a title can rule a site out early, and it’s rarely obvious from the street.

Zoning is everything, and it’s not standing still

This is where a lot of buyers can get it wrong: they set their sights on a property before checking the zoning and what can be achieved on the property. For example, Brisbane City Council’s City Plan sets out a series of zoning categories, and each one comes with its own rules on lot sizes, density, and what can be built. Two identical houses next door to one another may potentially have significantly different outcomes achieveable due to the properties having different zonings (area classifications) or different Local Area Plans (LAP's). Council is also actively reworking parts of the residential density framework under its “More Homes, Sooner” reforms, with changes on the table that would lower minimum lot sizes, extend where smaller lots can be created near shops and transport corridors, and lift allowable building heights in the right locations.

A property that only justified a knockdown-rebuild eighteen months ago may look very different once those provisions have come into effect. It’s part of why a search can’t just look at current zoning; it has to account for any proposed changes to the town plan, what’s trending in that pocket, and how nearby precedents have already played out.

It’s not just splitter blocks

A straightforward 810m² two-lot subdivision is the play everyone knows, and there’s nothing wrong with it. But it’s one option of many. Depending on a property's, land area, existing improvements, zoning. LAP and its exact location, the more interesting outcomes can include:

• Multi-lot subdivisions – some sites will support three, four, or more lots rather than a simple splitter, particularly larger or irregular parcels, corner blocks, or those with rear lane access

• Townhouse and small multiple-dwelling sites – in the right zone and location, a block can support a townhouse development instead of stand alone houses, which changes the yield and the numbers substantially

• Dual occupancy or Duplex – two dwellings on one title, attached or detached, which can suit sites that fall just short of subdivision minimums, or owners who want to keep the all property under one title for tax or lending reasons etc. The definitions of either can vary between councils, and so can the requirements.

• Amalgamation potential – sometimes the real opportunity isn’t the block itself, but what it becomes combined with the property next door; these sites rarely get noticed because they don’t look like much on their own

• Corner and battle-axe configurations – awkward-shaped blocks are often dismissed by buyers who can’t see past the geometry, but the right configuration can unlock access and yield that a “clean” rectangular block simply can’t match.

A lot of properties still carry upside nobody has priced in. What that upside actually looks like depends on zoning, precinct-specific provisions, local area plans, proximity to transport and shops, and how the numbers stack up, and that’s a different picture for every block.

Why the numbers matter as much as the potential

This is where a valuation and construction background changes the way a site gets screened. Knowing something is technically possible on paper is only half the picture; the other half is whether it’s the kind of site worth pursuing at all, once real-world costs are in the frame. That means keeping an eye on things like:

• Construction cost trends – for the area and the product type, rather than a rule-of-thumb rate pulled from the last job

• Council fees and holding costs – infrastructure charges and holding costs across the life of a project

• Comparable end value – what comparable finished product is genuinely achieving in that specific pocket, not the suburb average

• Timeframe – how long a project of that type typically takes, and what that means for holding costs.

Plenty of technically-approvable sites don’t hold up once real-world costs are accounted for, and plenty of overlooked ones turn out to be strong opportunities once someone looks past the surface. That gap is a big part of what separates a site worth chasing from one that just looks good on a listing photo.

The bottom line

Development potential isn’t just about whether council will approve something. It’s about whether a site is even worth chasing once you look past the obvious, and whether you’re seeing the full range of what a block could become. Splitter blocks get all the attention because they’re easy to spot, and buyers will often pay a premium for the obvious play. The better opportunities tend to sit where fewer people are looking. The old line still holds: you make your money when you buy.

As a buyer’s agent, I bring a valuation and construction background to how I search for and secure sites for developers and investors, whether that’s a straightforward subdivision play or something with a few more layers to it. If you’re after a site with genuine upside, I’m always happy to have a conversation about what you’re looking for.