Subdivision development management proposal
Four plots.
A clearer route to value.
Erf 279 Saxonwold
Conceptual diagram. Final plot dimensions and access remain subject to professional review and approval.
The opportunity
Advance the four-plot subdivision route.
The Phase 1 assessment tested three routes for Erf 279: a 24-unit development, a lower-density cluster scheme and subdivision into two or four residential plots.
Our recommendation is to advance the four-plot subdivision route. The planner has confirmed that a density rezoning is not required if the four erven each have direct road access; the statutory route is removal of restrictive title conditions plus subdivision. The current working case assumes four plot sales at R2 million each, producing R8 million in gross receipts.
This proposal appoints Akoma to take that recommendation into delivery. We will act as the owner’s representative, coordinate the planning and land-survey team, manage the City of Johannesburg application, and prepare the plots for sale alongside the appointed property agents.
Confirm whether four compliant, marketable plots can be approved, then manage the process through to sale without committing the owner to avoidable cost.
Why subdivision
A lower-exposure path that stays close to the neighbourhood’s character.
Planning fit
Subdivision keeps the proposed use close to Saxonwold’s established low-density residential character. This should reduce, but cannot remove, the risk of objections compared with a townhouse or apartment scheme.
Construction exposure
The owner can unlock value through serviced or approved plots rather than funding a full residential build.
Test before committing
Planning compliance, plot dimensions, access, title conditions, services capacity, bulk contributions and market evidence will be tested before the project advances.
Our proposed approach
One accountable route from feasibility to transfer.
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01
Confirm the development basis
Confirm the four-plot layout, direct road access, title conditions, services and physical fit. Obtain the land-surveyor and electrical-engineer inputs required for submission, and test plot values with local agents before relying on the R2 million assumption.
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02
Prepare and submit the application
Agree the preferred subdivision layout. Coordinate the town planner, surveyor and any specialist inputs. Prepare the City of Johannesburg application, notices and supporting documents, then manage submission and municipal queries.
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03
Manage approval and conditions
Track the application, public participation and objections. Coordinate responses and keep the owner informed on programme, cost and decisions. Manage clearance, contributions and approval conditions that fall within the agreed scope.
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04
Prepare the plots for sale
Work with the appointed agents on pricing, positioning and the release plan. Coordinate buyer information, planning disclosures and the handover to conveyancers through transfer.
Working programme
The planner estimates approximately nine months for the concurrent removal-of-restrictions and subdivision applications, six to eight weeks for SG diagrams, and a further four to six months for Section 34(5) clearances. Objections, service works and municipal response times may extend the programme.
Commercial case
A working balance of R745,027 before VAT.
Updated from VBH Town Planning’s 21 August 2026 quotation, the model gives R945,027 before Akoma’s fee and R745,027 after the R200,000 fee at the current R8 million sales assumption. The planner’s quoted scope is R153,297 excluding VAT, or R176,292 including VAT. The allowance for development and parks contributions is approximately R300,000 for the three additional portions, with a further R30,000 allowed for three new sewer connections. The R63,250 professional-fee allowance remains provisional pending land-surveyor, electrical-engineer and legal quotations. This remains a decision tool, not a guaranteed return, and excludes VAT on Akoma’s fee and any unconfirmed VAT treatment of the agents’ commission.
Working budget
- Land, transfer and demolition costs
- R6,000,000
- Sales costs
- R400,000
- Planning costs
- R176,292
- Development and parks contributions
- R300,000
- Sewer connection allowance
- R30,000
- Other professional fees and surveys
- R63,250
- Contingency (15%)
- R85,431
- Total costs
- R7,054,973
Sales assumptions
- Plots
- 4
- Plots sold
- 4
- Value per plot
- R2,000,000
- Agents’ fees
- 5%
- Akoma base fee
- 2.5%
- Uplift incentive above R8m
- 10%
- Combined Akoma fee cap
- 25% of pre-fee surplus
View planning fee detail
Removal of restrictions
- RoR application fee
- R1,297
- Advertisement costs
- R7,000
- Town-planning fee
- R40,000
- Drafting fee
- R5,000
- Disbursements
- R4,000
- Subtotal excl. VAT
- R57,297
Subdivision
- Application fee
- R1,600
- Town-planning fee
- R50,000
- Drafting fee
- R4,000
- Disbursements
- R5,000
- Subtotal excl. VAT
- R60,600
Section 34(5) and clearances
- Application fee
- R2,400
- Town-planning fee
- R30,000
- Disbursements
- R3,000
- Subtotal excl. VAT
- R35,400
- VAT on quoted planning scope
- R22,995
- Total planning fees
- R176,292
Other professional fees and surveys
- Architect
- R5,000
- Miscellaneous surveys or studies
- R50,000
- VAT on the above
- R8,250
- Total
- R63,250
Scope, terms and approval
Clear responsibility. Controlled commitments.
Akoma’s role
We will act as development manager and owner’s representative across the planning and sales workstreams. Our scope includes team procurement and coordination, application management, programme and cost reporting, objection-response coordination, sales preparation and owner decision support.
Commercial terms
Akoma’s proposed fee is 2.5% of gross plot sales proceeds, plus 10% of gross receipts achieved above R8 million. The combined fee cannot exceed 25% of the realised project surplus, calculated as gross receipts less approved fixed project costs before Akoma’s fee. R50,000 is payable on appointment and R50,000 on submission of the application. Both amounts count toward the final fee, with the balance payable from transfer proceeds. At the current R8 million working case, the total fee is R200,000. The illustration excludes value-added tax, which applies where required.
Third-party costs
Town-planning, surveying, municipal, advertising, specialist, conveyancing and agent costs are for the owner’s account. The town-planning scope now reflects VBH’s written quotation; land-surveyor, electrical-engineer and legal costs remain provisional until written quotations are received. No third-party appointment or material cost will be committed without the owner’s approval.
Key exclusions
Approval, timing and sales values cannot be guaranteed. Legal advice, tax advice, detailed engineering, physical infrastructure works and litigation are excluded unless separately appointed.
Approval to proceed
Start with a costed inception plan.
To appoint Akoma, please confirm acceptance by email. We will then finalise the planner’s appointment, obtain land-surveyor and electrical-engineer proposals, confirm the four-plot layout and return with a fully costed inception plan before the statutory application begins.