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I guess the appeal of a corner block (and the reason I bought one) is the potential to subdivide a property without having to demolish the existing house provided the backyard is big enough.

I dont think so. are you looking at it from a buyers or sellers point of view? as a buyer it would be more important for the numbers to stack up. i.e. the realized equity after the subdivide. IMO separate driveways would not give a hell of a lot more appeal than joint. in most cases you could...