FAQ on Subdivisions Development

What is subdivision development?

§ It is the conversion of unimproved rawland into a site that will be capable of supporting a desired activity and intended usage, which may be for residential, commercial, or industrial purposes.

§ Subdivision development is a very complex undertaking. It usually needs the services of different professionals such as, but not limited to, civil engineers, landscape artists, geodetic engineers, architects, real estate brokers and marketing specialists working as a team. Other team members may include ecologists, financing specialists, taxation experts, and many more with other areas of expertise.

What is subdivision?

§ It is a division of a tract or parcel of land into two or more lots, sites or other divisions for the purpose, whether immediate or future, of a sale or building development. It also includes re-subdivision.


What is land subdivision?

§ It refers to the creative “manufacturing” process of converting a large parcel of “raw” land or consolidating several adjoining parcels of various sizes and shapes, subdividing the consolidated land tract into lots of desired size and dimension in an orderly pattern and providing access roads to each of the lots, together with such utilities, facilities and amenities as may be necessary for the particular project.

§ It should be noted that while “subdivision” technically refers to the mere partitioning of land, and “development” means the subdivision and the setting up of essential community facilities, the words, are, in practice interchangeable.


What are the 3 main categories of subdivision development?

§ Residential subdivision- the conversion of rawland to a safe, serviceable and affordable residence with associated facilities

§ Commercial developments- the development of strategically located property for office, retail, wholesale and financial activities and also for general services and travelers needs. Its viability is dependent on the purchasing power of the supporting population within the area and its accessibility

§ Industrial developments- the development of big tract or rawland which focuses on providing property industrial manufacturing. Its success depends upon the climate, topography, transportation facilities, availability or sewer outlets, water sources and future expansion potentials.


What are the types of residential subdivision?

§ Single family development- a single unit on each building lot with direct access to a street

§ detached

§ attached (i.e. duplex)

§ Multifamily development- more than one dwelling unit on each building lot (i.e. multilevel housing, tenement housing)

§ Manufactured (factory built) housing development (i.e. prefabricated modular housing units)


What are the kinds of subdivision?


§ simple- refers to a subdivision of a parcel of land located on an existing street into two or more lots without creating any road or open space or without changing the existing external periphery or boundary. For segregation of separate title for each subdivided lot, the survey plan ordinarily needs to be verified and approved only by the Land Registration Commission.

§ complex- refers to a subdivision of a parcel of land, or of several parcels of land after consolidating them into two or more lots, with provisions for roads and/or community spaces, or with changes in the external periphery or boundary, subdivisions of this type require the approval of the Human Settlement Regulatory Commission, the Bureau of Land and the Land Registration Commission

As to USES

§ Residential- devoted to dwelling in a certain place which is used as the permanent abode of a person or family

§ Commercial- devoted to edifies or houses in which businesses directed primarily for profit is transacted or undertaken

§ Industrial- devoted to use by entities engaged in industrial pursuits or manufacturing of goods for profit

§ Institutional- devoted to the use by institutions, societies, or corporations which area charitable, educational, religious or the like in nature and character

§ Farm- devoted to agricultural purposes or the raising of domestic animals for sale or personal use and consumption

§ Resort- a place that is frequently and customarily used for assembly and entertainment purposes or where a person or his family friends usually go adventure and relaxation


§ Low cost- 66-100 family/Ha

§ Economic- 21-65 family/Ha

§ Open market- 20 and below family/Ha


What are the steps/process in subdivision development?

Financial planning

§ feasibility study

§ cash flow projection

§ sources of funds

§ tax analysis

Legal preparation

§ sales agreements

§ documentation

§ compliance with government regulations


§ preliminary development plan

§ final development plans

§ compliance with government standards



§ promotion

§ brokers

§ agency


What are the criteria to evaluate the feasibility of subdivision development?


§ surrounding development

§ access to amenities

§ access to employment

Market acceptance of subdivision layout

§ density

§ open space

§ recreational facilities

§ site plans (i.e. 2 storey or 1 story, single detached or rowhouses)

§ project design (i.e. cluster housing)

§ orientation to view (i.e. morning sun)

§ street plan

Economic factors

§ land cost

§ development cost

§ sales price

§ absorption rate

§ anticipated delays in securing permits

§ construction period

§ cost of complying with government regulations

§ special conditions for plan approval (i.e. open space ratio)

§ requirement for socialized housing component (i.e. RA7279)


What government office issues subdivision development permit?

§ Local Government Unit (LGU)


What government office issues the license to sell?

§ Housing and Land Use Regulatory Board (HLURB)


Membership to the Integrated Professional Organization of Real Estate Service Practitioners (IPORESP) is AUTOMATIC and FREE for all real estate service agent, salesperson, broker, appraiser, assessor, or consultant in the Philippines. It does not matter whether you have an organization or none.

1 comment:

camishii said...

wow, thank you. this was very helpful to our group in writing our business report about a subdivision. :)