Can you build two homes on a block?-a Dual Occupancy Subdivision
- Swarup Dutta
- Oct 4
- 7 min read
How to Build Two or More Homes on Your Block in Victoria: A Step-by-Step Guide
More and more homeowners in Victoria are realising the potential of their land by building two or more dwellings on a single block. Whether you're helping your children get into the property market, planning an investment, or simply downsizing, subdividing your land can create long-term value.
Here’s a real example from a recent project where the existing house was retained for the parents, and a new home was built in the backyard. This process works for both dual occupancy and multi-unit developments, regardless of whether the existing house stays or is demolished.
Step 1: Review the Property Title
Before anything else, check your land title for restrictions.
Common issues to look out for:
Covenants – especially single dwelling covenants that prevent more than one house on the land.
Section 173 Agreements – legally binding agreements that may limit development.
These restrictions can significantly impact your ability to subdivide.
Removing a covenant is possible but difficult, costly, and without guaranteed success.
Step 2: Inspect the Land
Assess the physical features of the block, either in person or virtually using satellite tools.
Key things to check:
Is the block flat or sloping?
Flat blocks are generally easier to develop.
Steep blocks require more complex design and higher construction costs.
Shape of the land
Regular-shaped blocks with good frontage are ideal.
Narrow or irregular blocks may limit design flexibility.
Access to the rear
If retaining the existing house, you’ll need a 3-metre-wide driveway from the front boundary to the backyard.
In our example, there was 4 metres of space beside the existing house, which was sufficient.
Step 3: Assess Rear Setbacks
When building behind an existing house, you’ll need adequate space.
General guidelines:
At least 16 metres from the back of the existing house to the rear boundary is ideal for standard blocks.
On corner blocks, you may be able to work with less (e.g. 9 metres), depending on access and design.
These are not fixed rules — local planning controls always apply.
Step 4: Check Zoning, Overlays and Easements
This step is critical and should be done early.
You must check:
Zoning and Zone Schedule
These control what can be built and the development standards that apply (e.g. GRZ, NRZ).
Overlays
Flood overlays can restrict building or require elevated floor levels.
Cultural Heritage Sensitivity overlays may trigger the need for a CHMP (Cultural Heritage Management Plan).
Tip: CHMPs are often required when building three or more dwellings.
In a recent childcare project near a creek, the CHMP process took months and cost $50,000.
Easements and existing services
Underground pipes, drainage lines or electricity services can restrict where you build.
Building over easements is generally not permitted.
Step 5: Consider Site Orientation and House Layout
Design feasibility also depends on:
Which way the block faces – North-facing living spaces are preferred and often required under planning rules.
The current layout of the existing house – You may need to modify it (e.g. relocate windows or fences) to comply with privacy, access or ResCode standards.
Summary Checklist
If you're planning to build two or more dwellings on your land:
Review the title for covenants or restrictions.
Inspect the land for slope, shape, and access.
Ensure you have enough space at the rear if retaining the existing home.
Check the zoning, overlays and easements before spending on designs.
Think about orientation and existing house layout for compliance.
Be aware that some overlays can add significant cost and time to your development.
Need Expert Help? Get a Free Site Assessment
Swarup Dutta is a registered planner and designer with experience managing 250+ subdivision and dual occupancy permits across Victoria.
We offer a free high-level review of your property, including:
Title review for covenants and restrictions
Assessment of development feasibility
Zoning and overlay checks
Step-by-step guidance on what to do next
Don’t guess — get expert advice before you invest. Contact us now to book your free assessment.
Contact Swarup to review the planning overlays on your land.
Our Subdivision- Dual Occupancy Development Process
Turning a Backyard into a Second Home
Thinking of subdividing your land to help family or unlock investment potential?
Here’s how we helped a family in Victoria transform their backyard into a second home — a classic dual occupancy subdivision. This process applies whether you’re retaining your existing house or starting fresh.
Step 1: Zoning & Planning Overlays Check (1 Day)
We began with a Planning Review of the property:
The zoning allowed subdivision with no minimum lot size.
The Schedule had no restrictive variations, meaning:
Site coverage of 60% was allowed.
Secluded Private Open Space requirement was a standard 25 sqm.
In some areas, Schedule variations can reduce site coverage to 40–50% or increase open space to 60 sqm, reducing development potential.
We also reviewed planning overlays. In this case:
Vegetation overlays required careful siting of the new house to protect root zones of existing trees.
Other overlays (not on this block, but often seen) may include:
Flood overlays
Bushfire overlays
Neighbourhood character/design overlays
Heritage controls
Height limits
Step 2: Design Brief & Initial Concept (7 Days)
Swarup, our Principal Planner, met with the family to understand their needs and priorities.
We assessed the block and confirmed that a two-bedroom unit could be built in the backyard, provided we complied with planning rules, including:
Open space requirements for both homes (existing and new)
Car parking and car turning space
A 3-metre wide driveway from the front boundary to the backyard
Retaining the root system of a large gum tree near the proposed driveway
We arranged a:
Feature and Re-establishment Survey (RE Survey) to confirm boundaries
Re-establishment surveys are essential to avoid boundary breaches
Preliminary design for the new dwelling and subdivision layout
Approved by owners
Step 3: Town Planning Application Lodged (4–6 Weeks)
We developed a complete Town Planning Application, including:
Site plan
Floor plans and roof plans
Elevations
Shadow diagrams
Town Planning Report
We also:
Lodged a subdivision plan at the same time (saving 50% on Council fees)
Received a Request for Further Information (RFI) from Council after ~28 days
Addressed issues including vegetation and tree protection
Once complete, Council:
Advertised the application for public notice
Reviewed submissions and issued a Planning Permit
Timeframe: This stage can take 6 to 12+ months, depending on Council processing and community feedback.
Note:The subdivision approval granted was an in-principle approval (not yet title registration). It was a Strata Subdivision, with:
Lot 1: The existing house at the front
Lot 2: The backyard for the new home
A shared/common driveway
Step 4: Planning & Subdivision Permits Issued (6–8 Months)
Council granted:
A Planning Permit for the new house
A Subdivision Permit to create two separate lots
Permit conditions included:
Creating a shared/common property driveway
Ensuring each lot had its own services:
Sewer
Water
Electricity
NBN / Telecommunications
Once service connections (WORKS) were completed:
The formal subdivision plan could proceed to title registration
The parents and daughter could legally enter a contract of sale
Settlement would occur after the new lot (Lot 2) was registered with Land Use Victoria
Looking to Subdivide Your Backyard or Block?
We’ve managed 250+ subdivision and development permits across Greater Melbourne and regional Victoria.
Swarup offers a free high-level assessment to check if your land can be developed. We’ll:
Review your title and zoning
Identify any planning constraints
Advise on what’s possible and what’s not — before you spend a cent
Get honest, upfront advice from an experienced planner.Contact us now to book your free site review.
Our Founder walks the talk and developed his own dual occupancy subdivision
Swarup, our Founder, developed his first home into a highly successful Dual Occupancy subdivision. The sale proceeds paid off the mortgage and had enough left over to pay deposits on 2 further projects. He faced stiff obstruction from neighbours and Council.
Ready to find out if you too can subdivide your property in Victoria
Free! HIGH LEVEL OPINION including review of the property title.
Contact us for a Free high level opinion.
Step 5: Registration of Titles (9–15+ Months) (approximate timelines and costs)
Once Council issued the Planning and Subdivision Permit, the next step was to register the new lots with Land Use Victoria (the Titles Office).
Here’s how that process unfolded:
Our licensed land surveyor prepared a formal Plan of Subdivision in a format suitable for registration.
Council reviewed and approved the plan, provided it complied with all conditions of the subdivision permit.
The owners completed all required WORKS, including:
Connection of essential services (sewer, water, power, NBN) to the new lot at the rear
Construction of any required infrastructure (e.g. driveway)
After inspection, Council issued a Statement of Compliance (SoC) — confirming all permit conditions had been met.
Next:
The formal Plan of Subdivision and Statement of Compliance were lodged with the Titles Office in Melbourne.
Applicable fees were paid to statutory authorities (e.g. Council, water authority, energy providers).
The Titles Office then issued the Registered Titles:
Lot 1: Existing house
Lot 2: New backyard lot
Plus common property for the shared driveway
Finally:
The parent and daughter settled the sale, with the daughter now the legal owner of the new lot.
Approximate Cost to Date: $40,000, including:
Service connection costs
Land survey and planning professional fees
Statutory authority charges
Town Planning and Subdivision application fees
Step 6: Building Permit to Construct the New Home
With titles registered, the buyer of the backyard engaged a registered builder to construct her new two-bedroom home in the backyard.
This phase included:
Signing a building contract based on Building Permit drawings
Preparing all supporting documentation for a Building Permit, including:
Construction/working drawings
Structural and civil engineering reports
Thermal performance assessment (energy rating)
Landscape plan
Drainage and stormwater design
Once the Building Permit was issued, construction began.
The new owner secured a construction loan from her financial lender. Funds were released to the builder at key construction milestones, as per the contract and lending agreement.
Thinking of Subdividing Your Backyard?
Whether you're planning to:
Help your children into the property market
Downsize while staying on your land
Maximise the value of your block
Build and sell for profit
Our founder Swarup Dutta has personally managed over 250+ property subdivision and dual occupancy permits across Victoria — and completed his own dual occupancy development.
He understands what works — and what to avoid.
We offer a complimentary review of your land where we:
Assess your property’s development potential
Check zoning and overlays
Flag planning constraints early
Outline realistic next steps — with no obligation
Get expert advice before you spend thousands.
Contact Swarup today for a free high-level opinion on what’s possible on your block.
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