It is no secret that Western Australia is facing a housing crisis with a low vacancy rate and a growing population.

According to Summit Developments Senior Development Consultant Adrian Johnson, this has made it the perfect time to consider subdivision or strata lots.

“Perth’s property market remains the most affordable in the country, yet it’s poised for continued growth,” he said.

“In addition, the state continues to face a housing and rental crisis, as well as a low vacancy rate.

“Given these factors, it’s easy to see why investors are looking at subdivision for their next development.

“Or, for anyone starting out in property investment and who lacks the ability to take on a largescale project, front and rear strata projects are an ideal strategy.”

Grouped housing development in Waikiki.


With so many different types of strata and subdivision projects available, it can be difficult for investors and homeowners to know what is right for them.

Luckily developers, such as those at Summit Homes Group, are always ready to help owners throughout the decision-making process.

“The type of development you can build on your block will be determined by residential design codes,” Summit Developments Senior Development Consultant Ewan McConnell said.

“The next step is to conduct a feasibility study, where your developer will analyse your project to maximise the potential returns and minimise the risk of any cost blowouts. “Following this, your developer will order a feature contour survey to allow them to correctly assess your block and create detailed home designs.

“Once all of this is complete, your developer can then accurately recommend what type of strata development will best suit your site.”

Summit Developments Senior Development Architect Quentin Lau said engaging with a developer early on in the process was key to maximising one’s investment, as they often had industry knowledge that owners might not be aware of.

“Knowing what’s possible for your site and the rules and regulations involved is vital,” he said.

“For example, something as simple as a sewage connection may have added complications that could prove costly down the track, so it is crucial to have the right people around you from day one.”

Mr Lau also notes that in order to get the best investment, it is important to consider where the prices are cheap and where the demand for housing is.

“Look at infill areas in close proximity to the Perth CBD with infrastructure or proposed activity centres such as universities, shopping centres or nearby public transport,” he said.

“Consider Perth’s older suburbs where you are paying land value only and the existing house has no intrinsic value or property with an existing house that has redevelopment potential on the vacant portion.”

*As originally published in The West Australian on 18th February, 2023.

Summit Homes are Perth’s leading home builders and property developers. Speak to our team of experienced development specialists who will be able to help guide you in the right direction. And if feasible, create a structured property development plan for you.