When it comes to expanding residential properties in New South Wales (NSW), two popular options are secondary dwellings (often referred to as granny flats) and dual occupancies.
While they may appear similar, each has distinct characteristics, uses and regulatory requirements.
What is a Secondary Dwelling?
A secondary dwelling, commonly known as a granny flat, is a smaller, self-contained living space built on the same lot as an existing primary residence.
Key features of a secondary dwelling include:
- Size and Layout: A secondary dwelling is usually limited to a maximum internal floor area of 60 square metres, making it more compact than a primary residence.
- Single Ownership: A secondary dwelling cannot be subdivided or sold separately from the primary dwelling. It remains part of the same property title.
- Primary Use: Secondary dwellings are often intended for accommodating family members, such as elderly parents or young adults, or as a rental unit for additional income.
Approval Pathways for Secondary Dwellings
- Complying Development Certificate (CDC): For eligible properties, a CDC offers a streamlined approval process, allowing secondary dwellings to be approved as complying development. This pathway applies if the property meets specific criteria outlined in the State Environmental Planning Policy (Exempt and Complying Development Codes) 2008 (Codes SEPP), such as zoning requirements and setbacks.
- Development Application (DA): If the property doesn’t meet the criteria for a CDC, a DA may be required. This involves submitting an application to the local council for assessment against the Development Control Plan (DCP) and Local Environmental Plan (LEP).
What is Dual Occupancy?
Dual occupancy involves constructing two separate dwellings on a single lot, either as two detached homes or two homes attached by a shared wall. The two main types of dual occupancies are:
- Attached Dual Occupancy: Two dwellings that share a wall but have separate entrances and living spaces.
- Detached Dual Occupancy: Two freestanding homes on the same lot, creating more separation and privacy.
Key Characteristics of Dual Occupancy
- Size and Layout: Unlike secondary dwellings, dual occupancies can be larger, and each dwelling can have similar size and amenities to a primary residence.
- Subdivision Potential: With council approval, some dual occupancy developments may qualify for subdivision, allowing each dwelling to be sold separately. However, this depends on local council regulations and minimum lot size requirements.
- Intended Use: Dual occupancies are often intended for investment purposes, multi-family living, or creating a second home on the property that can be rented or sold (if subdivided).
Approval Pathways for Dual Occupancy
- Development Application (DA): In most cases, dual occupancy developments require a DA submitted to the local council. This involves a detailed assessment process to ensure compliance with zoning, setbacks, height restrictions, and other planning controls.
- Complying Development Certificate (CDC): For certain properties that meet specific requirements, an attached dual occupancy may qualify for a CDC as complying development. However, this is subject to strict criteria under the Codes SEPP.
Comparing Secondary Dwellings and Dual Occupancies
| Feature | Secondary Dwelling | Dual Occupancy |
| Size | Up to 60 sqm | Can be the same size as a primary dwelling |
| Ownership | Single title, no subdivision | May be subdivided (with council approval) |
| Approval Pathway | CDC or DA | DA; limited CDC options for attached duals |
| Primary Use | Family accommodation, rental income | Investment, multi-family living |
| Zoning Requirements | Residential zones (R1, R2, etc.) | Stricter zoning and lot size requirements |
Factors to Consider When Choosing Between the Two
1. Purpose of the Additional Dwelling
- If the goal is to create a smaller unit for family or rental income, a secondary dwelling may be ideal due to its simpler approval process and lower cost.
- For creating a second, fully functional home that may eventually be subdivided and sold, dual occupancy provides greater flexibility.
2. Property Zoning and Lot Size
- Secondary dwellings are generally permitted in more residential zones with fewer lot size restrictions.
- Dual occupancies often require larger lot sizes and stricter zoning compliance, especially if subdivision is a goal.
3. Future Investment and Ownership Options
- A secondary dwelling cannot be subdivided, meaning it will always remain part of the same title as the primary dwelling.
- Dual occupancy has the potential for subdivision, making it suitable for property owners looking for more flexibility with ownership and investment.
4. Approval Complexity
- Secondary dwellings often qualify for a CDC, making the approval process faster and more straightforward.
- Dual occupancy typically requires a DA, which involves a more extensive assessment and a longer approval timeframe.
Both secondary dwellings and dual occupancies offer valuable options for expanding your property, each with distinct benefits and requirements.
Secondary dwellings are ideal for smaller, flexible housing additions with simpler approval processes, while dual occupancies offer the potential for subdivision and greater independence.
For advice on choosing the right option for your needs, ApproveAll Town Planning can provide expert guidance and support with the approval process to ensure your project aligns with council regulations and your investment goals.
Contact us at projects@approveall.com.au or give us a call on (02) 8000 9150
