Understanding Secondary Dwellings and Dual Occupancy in NSW
28th March, 2025
In New South Wales (NSW), two popular property development options are secondary dwellings and dual occupancy. While they share some similarities, each has distinct features that affect how they are built, used, and approved.
What is a Secondary Dwelling?
A secondary dwelling, sometimes known as a granny flat, is a smaller, self-contained living space on the same lot as an existing house. It provides extra accommodation, often for family members or rental income.
Key characteristics of secondary dwellings include:
- Size and Layout: These dwellings are limited to 60 square metres in internal floor area.
- Single Ownership: A secondary dwelling cannot be sold separately from the primary house. It stays on the same title.
- Primary Use: They are commonly used for family accommodation or to generate extra income through rentals.
Approval Process for Secondary Dwellings
In most cases, a secondary dwelling can be approved via a Complying Development Certificate (CDC). This is a quicker process if the property meets zoning and setback requirements. If the property doesn’t qualify, a Development Application (DA) is required, which involves a more detailed council review.
What is Dual Occupancy?
Dual occupancy involves two separate dwellings on a single property. These can either be attached (sharing a wall or a walkway) or detached (separate structures).
Key characteristics of dual occupancy include:
- Size and Layout: Dual occupancy dwellings are larger and can have floor areas, like a primary home.
- Ownership: With council approval, dual occupancy can be subdivided, allowing the properties to be sold separately.
- Intended Use: These developments are suited for multi-family living or investment properties, including potential rental income or resale after subdivision.
Approval Process for Dual Occupancy
A Development Application (DA) is required for dual occupancy developments. This involves an in-depth assessment by the local council, including checks for zoning, setbacks, and planning controls. In some cases, attached dual occupancies may qualify for a Complying Development Certificate (CDC).
Key Differences
| Feature | Secondary Dwelling | Dual Occupancy |
| Size | Limited to 60 sqm | Larger, like the primary dwelling |
| Ownership | Cannot be subdivided | Can be subdivided (with approval) |
| Approval Pathway | CDC or DA | DA (limited CDC options for attached) |
| Primary Use | Family accommodation, rental income | Investment, multi-family living |
| Zoning Requirements | Residential zones (R1, R2, etc.) | Stricter zoning, larger lot sizes |
Choosing Between a Secondary Dwelling and Dual Occupancy
- Purpose: If you want a smaller living space for family or rental income, a secondary dwelling is ideal. If you prefer more flexibility and the possibility of subdividing and selling, dual occupancy offers greater potential.
- Property Zoning and Size: Secondary dwellings generally have fewer restrictions and are suitable for a wider range of properties. In contrast, dual occupancy requires larger lot sizes and strict zoning compliance.
- Investment and Ownership: A secondary dwelling stays on the same title, while dual occupancy may allow for subdivision, offering more investment flexibility.
- Approval Process: Secondary dwellings often can qualify for a faster CDC process, while dual occupancy typically requires a DA, which involves a longer approval timeline.
Bangalow Conveyancing works closely with Castrikum Adams Legal to provide comprehensive support throughout your property development journey. From zoning and legal compliance, we ensure a seamless experience. Contact us today for expert advice and assistance with your property project.
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