Double the living, double the return — would dual occupancy homes make the most of your land and lifestyle? Photo: Sunny Homes.
Canberra’s housing market is under pressure, but change is coming — and for homeowners sitting on larger suburban blocks, the opportunity to shape the city’s future might be sitting right in their backyard.
With the ACT Government signalling reforms that could rezone thousands of blocks to allow dual occupancy, builders are bracing for a surge in demand. According to Sunny Homes director Sunny Malhotra, the shift will transform not just where Canberrans live, but how.
“RZ2, or ‘suburban core’ zoning, is where you can build two dwellings on blocks over 800 sqm. It makes sense to have higher density near shops, services and arterial roads,” Sunny says.
“But at the moment, around 70 per cent of Canberra’s residential land is zoned RZ1. On an RZ1 zone block, to build a second dwelling, the block must not only be over 800 sqm, but even then second dwellings are limited to 120 sqm.”
Sunny says this model has flopped.
“Not even 10 per cent of proposed secondary dwellings have been approved in RZ1 blocks, and 120 sqm [houses] just aren’t suitable for most people.”
Another 30,000 people are tipped to call Canberra home in the next five years, contributing to mounting pressure around housing affordability and supply.
An increase in dual occupancy is one part of the solution.
“We can’t keep building new suburbs, because land is limited,” Sunny says. “The ACT Government knows this, and they’re responding.”
The recently released draft Missing Middle Housing Design Guide includes recommendations for developers and builders. Its core intent is to allow for a broader range of housing types, with design guidelines to ensure these new developments fit well within existing suburbs.
Notably, though RZ1 will still be more restricted than RZ2, the proposed reforms would allow more dual occupancy and medium-density housing, such as townhouses and multi-occupancies, in existing RZ1 and RZ2 residential zones.
There are different ways to build dual occupancy on a block. Photo: Sunny Homes.
For homeowners and investors, dual occupancy possibilities go far beyond the old-fashioned granny flat, which Sunny says has waned in popularity over the years.
“Many people are opting to knock down a single dwelling, subdivide the land, and build two homes,” he says. “This provides the option to become the owner-occupant of one and either sell the other to pay off the mortgage or keep it as a source of income.”
Other options include attached duplexes, where two homes share a noise and fire-proof partition wall, detached duplexes with two separate houses on the same lot or tandem designs, where one home is positioned behind another.
Each can be tailored to the owner’s needs, whether that’s multigenerational living, generating rental income or setting up a long-term investment.
Sunny says this flexibility doesn’t always mean compromising privacy and independence – even duplexes that share a wall can be designed with individual driveways, garages and entrances.
“It’s worth noting, however, that if you subdivide, each block gets a separate title,” Sunny says. “That has definite appeal, especially for investors.”
Sunny says as the reforms move closer to reality, for many Canberrans, a dual occupancy will become a practical solution to today’s housing challenges — one that unlocks new value from their property while helping the city meet its future needs.
It’s important, however, to seek out the right guidance.
“Look for a builder who knows the rules, understands the market and can educate you on the best way to achieve your goals,” Sunny says.
Sunny Homes has positioned itself at the forefront of this shift. With an in-house building designer and a network of consulting architects, the company has already made its mark. Their dual occupancy at Eggleston Crescent in Chifley was a finalist for the 2021 HIA Dual Occupancy of the Year, while a subsequent project in Watson won at the 2022 Master Builders and Asset Construction Hire Excellence Awards and was a finalist again in 2023.
This year, they’re already lined up for dual-occupancy builds in Macquarie, Chifley, Taylor and Lyons.
“We’re looking forward to delivering those projects,” Sunny says.
“We’ve seen first-hand how well dual occupancies can help more than one person reach their goal in a challenging market.”
For help exploring dual occupancy design options, approvals and investment strategies, visit Sunny Homes or tour the display homes at Taylor (73 Robin Boyd Cres, Taylor, ACT) or Googong (60 Edward Dr, Googong, NSW).
