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

What are the steps/process in

subdivision development?
Financial planning
feasibility study
cash flow projection
sources of funds
tax analysis
Legal preparation

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

compliance with government regulations

Commercial- devoted to edifies or houses

in which businesses directed primarily for
profit is transacted or undertaken

preliminary development plan

Industrial- devoted to use by entities

engaged in industrial pursuits or
manufacturing of goods for profit

final development plans

compliance with government standards

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



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

Low cost- 66-100 family/Ha
surrounding development
Economic- 21-65 family/Ha
access to amenities
Open market- 20 and below family/Ha
access to employment

Market acceptance of subdivision layout

special conditions for plan approval (i.e.

open space ratio)

open space

requirement for socialized housing

component (i.e. RA7279)

recreational facilities


site plans (i.e. 2 storey or 1 story, single

detached or rowhouses)

What government office issues

subdivision development permit?

project design (i.e. cluster housing)

Local Government Unit (LGU)

orientation to view (i.e. morning sun)


street plan

What government office issues the

license to sell?

Economic factors
land cost

Housing and Land Use Regulatory Board


development cost
sales price
absorption rate
anticipated delays in securing permits
construction period
cost of complying with government

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

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