A splitter block project takes a single larger residential block, typically a wide corner lot or a rectangular suburban block large enough to subdivide under local council rules and converts it into two or more separate development sites. The existing dwelling is usually demolished or removed, the title is subdivided, and new dwellings are built on each of the new lots. The financial logic is straightforward: the completed value of two or three new dwellings substantially exceeds the value of the original block with the original dwelling on it.
Splitter block activity has grown rapidly across Australia over the past decade, particularly in metropolitan and major regional areas where state and local government planning policy favours infill density over continued urban sprawl. Average block sizes in growth corridors have fallen, splitter approvals have multiplied, and small developers including first-time investors moving from holding into development, have stepped into the asset class. Banks have not kept up. Splitter block deals don't fit traditional residential construction lending, sit awkwardly between subdivision and construction policy, and are routinely declined or delayed for procedural reasons rather than commercial ones.
At Commercial Property Funding, splitter block finance is asset-led and project-led. Assessment focuses on the original block, the council position on the proposed split, the builder, the projected end value of the new dwellings on completion (NRV), and a credible exit strategy - typically the staged sale of the new dwellings or a refinance to a longer-term facility once construction completes. Pre-sales are not required to start the build, and the loan can fund the project whether the original block is already owned or is still being acquired.
Up to 80%
of Net Realisation Value of the completed project Funded
against projected completed value, not the current block No
pre-sales required to start the build Funding
available whether the block is owned or being purchased
Capitalised interest - no monthly debt servicing during the term
Staged
drawdowns covering demolition, subdivision, and construction
First-time developers considered on the merits of the project
No
brokerage clawbacks - broker commissions stay paid
Large suburban blocks - typically 700 square metres and up - split into two or three new lots, each with a new dwelling built for sale.
Corner lots offering dual-street frontage and higher-value-unlock potential - split into separately titled lots with street access.
Tired or dated dwellings on otherwise valuable blocks, demolished, subdivided, and replaced with 2+ new dwellings.
From first-time developers running a single splitter on a long-held block, through to experienced operators.
Submit your project for assessment or speak with our team about splitter block finance for your next development.
Funding solutions designed for property developers, investors, and brokers across Australia.
