Why Subdividing Now Might Be the Smartest Move in Property
How One Expat Client Won in Frankston. When my Singapore-based client first came to me in early 2023, they were fascinated by subdivision. On paper, it’s one of the most powerful strategies in residential real estate: buy once, unlock multiple dwellings, amplify appreciation, and maximise tax efficiency.
But here’s the reality: they were also nervous, not about the numbers, not about the strategy, but about the idea of actually building. That’s where most people stop.
The key insight? You don’t have to build immediately to profit. Subdivision creates multiple exit points. Selling with plans and permits alone adds tremendous value, even if you never put a shovel in the ground. For many expats paying down loans while working overseas, that’s the perfect balance: capital growth working in the background, without the stress of managing construction remotely.
Step 1: The SMART Filter
We began the process with the Shortlist SMART Filter, our signature suburb matching and refinement tool. It forces focus by exploring three concepts side by side, then narrowing to what really matters.
In this case, one of the initial contenders was a property in Pakenham with solid subdivision potential. We missed it. At the time, the client was frustrated. Looking back now, it was a blessing in disguise.
The SMART Filter did its job. It showed us what didn’t fit, and in turn, clarified exactly what did. That clarity is what led us to Frankston.
Step 2: Why Frankston
Frankston offered the “whole package”:
- Strong future infrastructure investment
- Scarcity of land relative to demand
- A long-term record of capital appreciation
- Coastal lifestyle appeal that resonates with both investors and future homeowners
Here’s the interesting part: when we were buying in early 2023, median growth in Frankston was declining. Most saw that as a warning sign. My experience told me it was an opportunity. Lower median trends often disguise micro-markets where well-located properties perform much better.
Step 3: The Search Technique
To find the right property, we used one of my go-to techniques on realestate.com.au:
- Set filters for price range, minimum 600sqm land size, and the keyword STCA.
- Switch to map view and zoom out to see clusters of subdivision opportunities.
- Sort by “newest to oldest” and save the search for quick daily checks.
This simple process is how we found the eventual purchase. It’s repeatable, efficient, and cuts through the noise.
Step 4: Negotiation in a Silent Bid Market
The property went to market under a silent bid process. These campaigns mean fewer buyers see the property, but the competition among those who do is intense. In this case, there were 22 bids submitted.
This is where professional representation makes the difference. We secured the property not only with the winning bid, but with a strategic clause that allowed renegotiation two weeks later, after the dust settled and the competition had walked away. That single clause saved the client thousands, and more than covered my fee.
Step 5: The Lipstick Renovation
Once settled, we carried out a lipstick renovation. This wasn’t about adding luxury. It was about ensuring the property met rental compliance standards, presented well to tenants, and created stable cash flow while the subdivision potential simmered in the background.
Two Years Later
Fast forward over two years. In our annual review, we conservatively estimated 30%+ appreciation on the property. And that’s before factoring in the unbuilt dwellings.
Meanwhile, Beat Magazine has named Frankston the hottest property spot in Victoria, and one of the top four in Australia. That validates the decision to focus here, even though the median was in decline at the time of purchase.
Comparable Case Studies
Subdivision is not just a theory. Here are three recent examples that show how the strategy plays out in practice:
- 28 Leonard Street, Frankston – 804sqm with wide frontage. Classic “house at the front, unit at the back” setup. See details →
- 16 Heatherhill Road, Frankston – 846sqm in Frankston High School Zone. Perfect knock-down for multiple new dwellings. See details →
- 45 Cameron Way, Pakenham – 785sqm flat block in a growth corridor. Strong dual-occupancy potential.
See details →
Each example shows a different flavour of subdivision, whether that’s one extra dwelling, a knock-down and rebuild, or land banking with future upside.
The Lesson for Expats
Subdivision can look like a “too hard basket” strategy. The holding costs are higher, the blocks are older, and the process is more complex. But for those who commit, the payoff is extraordinary.
Why it works so well for expats:
- One stamp duty, multiple properties over time
- Amplified appreciation as new dwellings are added
- Tax efficiency if a property becomes your principal place of residence upon return
- Flexibility to sell early with plans and permits, or hold for the long play
And don’t underestimate the power of loan repayment. Expats earning well overseas, often in low-or no-tax environments, can smash down debt faster, which accelerates equity growth.
Final Thought
This Frankston purchase is a case study in why you don’t need to wait for the “perfect time” to buy. It’s not about timing the market. It’s about being clear on strategy, acting decisively, and leveraging the right opportunities when they appear.
Subdivision isn’t for everyone. But for the right profile, it’s the closest thing residential real estate has to a James Bond strategy, smooth, powerful, and built to win in the long run.
👉 See how we apply 8+ hours of due diligence to every property: Our Due Diligence Process →
👉 Get the complete Shortlist 360 Guide & Checklist to buying remotely: Download Here →