5.

1 SUBDIVISION DEVELOPMENT
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Subdivision
In general, a subdivision is a large tract of land that is subdivided into smaller
parcels for a specific use.
Subdivisions can either be:
• A simple subdivision : one in which a parcel of land is divided into
smaller parcels but there are no provisions for streets or open spaces.
Example, a lot of 600 sqm is subdivided into 3 smaller lots to be
distributed among siblings.
• A complex subdivision : one in which the entire tract is carefully planned
and divided into smaller lots served by streets and open spaces. Usually, a
complex subdivision is undertaken by subdivision developer and this
becomes a “subdivision project.”
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Common Types of Subdivision projects:
1. Residential subdivision – the most common form, found in almost all major
cities and municipalities. The project could be “Lots Only” or “house and Lot”
or a combination.
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2. Industrial subdivision – devoted primarily for factories and
manufacturing plants; many are found in Cavite. Includes those that were
created into special economic zones (EPZA) for export industries.
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3. Agricultural subdivision – larger lots (minimum 750 sqm) in which the
buildable area is restricted to 25% so that remaining space can be used for small–
scale farming.
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4. Planned unit development – large tracts of land that is master –planned to
become a mixed use neighborhood with spaces allocated for commercial,
residential, office and other uses; as well as amenities and open spaces.
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Several other special projects which also planning and complex subdivision of
land but these does not usually result in separate titles:
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1. Golf courses – an 18 hole golf course requires at least 150 hectares. Land is
planned as a series of landscaped areas called fairways that lead to a target area called
the green. On the green is a hole. Golf course ownership is sold in the form of
membership shares.
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2. Memorial parks – are tracts of land which are carefully planned to offer
burial plots for sale. Besides burial plots, spaces for mausoleums ( small
privately owned structures containing crypts ) are also sold. Memorial plots are
not title under the Torrens system but buyer/owners hold certificates.
DEFINITIONS:
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1. Subdivision in general is a tract of land subdivided into two or more lots.
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2. Subdivision Project – as defined by P.D. 957, is a tract of land registered
under Act 496 (Now P.D. 1529), which is partitioned primarily for
residential purpose into individual lots, with or without improvements
thereon, and offered for sale to the public in cash or instalment. It shall
include all residential, commercial, industrial and recreational areas, as
well as open spaces and other community and public areas.
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3. Simple Subdivision – a subdivision where no street or open space is
delineated
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4. Complex Subdivision – a subdivision with street and / or open spaces.
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5. Square Planning – a subdivision scheme for flat terrain.
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6. Contour Planning – subdivision scheme for a rolling terrain.
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7. Gridiron – a subdivision scheme where the resulting blocks are more or
less rectangular.
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8. Chaplan –indention along corner lots allow better visibility to
perpendicular traffic.
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9. Cul-de-sac – a passageway with only one outlet. A blind alley.
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10. Key Lot – a lot adjoining a corner lot and fronting an intersecting street.
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11. Relocation Survey – the measurement of the land to determine its external
boundaries and ascertain whether or not there are encroachments.
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12. Subdivision Survey – a survey to determine the boundaries of each lot in
the subdivision project.
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13. Contour Lines – are lines in a topographic map which indicate the
elevation of the land at various sections.
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14. Tie Line – imaginary line connecting point 1 of lot with a reference point,
such as a Bureau of Lands Location Monument (BLLM).
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15. Point of Beginning – the first corner or point 1 of lot.
16. Tie Point – the reference point or a BLLM. The point of beginning is
connected with the tie point by a tie line.
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 17. Environmental Compliance Certificate – a document issued by the DENR
Secretary that the proposed project will not cause a significant negative
environmental impact.
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18. Environmental Impact Assessment – the process of predicting the likely
environmental consequences of implementing projects, and designing
appropriate preventive, mitigating, and enhancement measures.
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19. Environmental Impact Statement – refers to document/s of studios on the
environmental effects of a project, including the discussions on direct and
indirect consequences on human welfare and ecological and
environmental integrity.
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GENERAL STEPS IN SUBDIVISION DEVELOPMENT
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1. Title verification or due diligence to be conducted by the developer
2. Feasibility study (market, profit, finance, technical and social desirability)
that includes highest and best-use-study.
3. Contract with landowner (in case of joint venture project)
4. Relocation and topographic survey
5. Preparation of subdivision plan and engineering drawings
6. Procurement of government approvals (subdivision permits and license)
7. Development of the project
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COMPUTATION OF UNIT COST
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Rawland cost: say P400/sqm Development cost: say P1,000/sqm
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Unit cost = Land & Development Cost = P1,400.00 = P2,000.00/sqm
% Saleable area 70%
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SCOPE OF FEASIBILITY STUDY (Subdivision Development)
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1. Feasibility of conversion (if land is agricultural)
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2. Highest and best-use analysis
a. maximum potential and legal use
b. consideration to economic principles of values
i. conformity
ii. over and under-improvement
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3. Market study
a) Population growth in city / municipality and adjoining areas
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 b) Character of population growth
c) Income or purchasing power
d) Families owning / renting residences
e) Who is the target market?
f) Absorption analysis?
g) Study competitors
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4. Finance (Project Cost / Operating Cost)
a) Raw land costs
b) Development cost
c) Permits and licenses (procurement of government approvals)
d) Surveys (relocation, topographic, subdivision)
e) Preparation of subdivision plan and engineering drawings
f) Segregation of titles
g) Operating Cost:
a. Marketing, promotion,
b. Administration, contingencies
c. Taxes
h) Source of financing
i) Cash flow
j) Remember: If you can sell, can you construct;
If you can construct, can you sell;
If you can sell and construct, can you collect.
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5. Profitability aspect
a. Profit and loss
b. !
6. Technical aspect
a. Qualifications of the technical people involved in the development
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7. Social desirability
a. Development enhances the value of property
b. Increases the value of adjoining lots (principle of progression)
c. Increase in realty taxes (due to development) and national taxes (taxes
on disposition)
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DEVELOPMENT ITEMS
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1. Clearing and grubbing, cut and fill, and / or backfilling
2. Roads, curbs and gutters, sidewalks, planting strips
3. Drainage and sewerage systems
4. Water and electric supply and distribution system
5. Perimeter wall, landscaped entrance gate, guardhouse
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 6. Clubhouse parks, sport facilities, and other amenities
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GOVERNMENT PERMITS AND LICENSES
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1. Department of Agrarian Reform (DAR)
• Conversion Permit, if land is agricultural
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2. Local Government Unit (LGU)
• Certification that the land falls within residential, commercial, or
industrial zone.
• Approval of subdivision plan and engineering drawings, and
issuance of development permit.
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3. Department of Environment & Natural Resources (DENR)
• Certification that the conversion is ecologically viable.
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4. Department of Agricultural (DA)
• Certification that the land is no longer suitable for agriculture.
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5. Housing and Land Use Regulatory Board (HLURB)
• Pre-approval and final approval of subdivision plan
• Issuance of Certificate of Registration and License to Sell
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6. Land Management Bureau (LBM) or Land Registration Authority
(LRA)
• Approval of subdivision plan and lots technical descriptions.
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7. Register of Deeds (RD) – segregation of titles.
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8. In some cases:
• Laguna Lake Development Authority (LLDA)
▪ clearance if proposed subdivision is near Laguna Lake
• Department of Tourism (DOT)
▪ Clearance if the area is remarked for tourism
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