WHY CAN'T I SUBDIVIDE MY BACKYARD?

Some properties are simply not suited to a backyard subdivision.

In some cases, a partial or full demolition of the existing dwelling may be the only practical way to unlock the site. However, that option is not always commercially viable, and if there is a mortgage on the property, the lender may not support demolition unless the existing house is in poor condition or requires major works.

So why can’t some backyards be subdivided?

The answer usually comes down to the size, shape and depth of the land, together with a range of planning and servicing requirements that must all be satisfied.

Car parking and access

Most developments need to provide car parking for both the existing house and the new dwelling, depending on the size of the home, the zone and the relevant parking requirements.

In many cases, councils prefer parking to be located out of view from the street, with the front yard kept primarily for landscaping and presentation. A driveway to the rear can also consume valuable site area, especially on narrow blocks where access is tight.

A typical rear development still needs practical vehicle access, and in Victoria the car parking standards and access dimensions remain an important part of the assessment.

Private open space

A new dwelling needs usable private open space. Under Victoria’s planning provisions, secluded private open space commonly needs to meet a minimum area of 25 square metres with a minimum dimension of 3 metres.

This space is often treated like a private courtyard, balcony or rear garden area. In a backyard subdivision, allocating enough space for parking, access and private open space can quickly reduce the developable area of the site.

Orientation and overshadowing

Site orientation still matters. A north-facing rear yard generally performs better for natural light and solar access, while also helping reduce overshadowing impacts on neighbouring properties.

The new Townhouse and Low-Rise Code places strong emphasis on daylight access, overshadowing and a better overall design response, so these issues remain important in 2026 even though the assessment pathway has changed.

Trees and landscaping

Vegetation can significantly affect whether a backyard development is feasible. Trees on your site may need to be retained or protected, and trees on adjoining land can also influence setbacks, foundations and building form if the proposed works may affect their health.

The updated Victorian approach also gives greater weight to tree canopy, landscaping and greenery, which means sites with limited open area or significant vegetation can be more constrained than they first appear.

Easements

Easements are areas of land reserved for services such as sewer, stormwater or drainage. In most cases, fixed structures cannot be built over an easement without consent from the relevant authority, and habitable rooms are generally not permitted over drainage easements.

This can be a major issue on narrow suburban lots because an easement can take away the very land you would otherwise need for a driveway, garage or building footprint.

Low-rise housing code

Victoria’s new Townhouse and Low-Rise Code has changed the way two or more dwellings on a lot are assessed. It introduces a deemed-to-comply pathway for townhouses and low-rise apartment buildings up to three storeys, but the site still needs to satisfy the relevant standards for setbacks, open space, landscaping, access, overshadowing and amenity.

In other words, the new code can improve certainty, but it does not make every backyard suitable for development. Poorly shaped sites, shallow lots and constrained access can still make a proposal impractical.

Covenants

Some titles contain restrictive covenants that can prevent additional dwellings. A common example is a single-dwelling covenant, which may limit the land to one dwelling only.

These covenants should be checked early, because they can affect whether a subdivision or second dwelling is possible. In some cases, the planning system may be able to deal with covenant issues in future, but for now they still require careful legal and planning review.

Subdivision costs

Even a small rear development involves fixed costs. These can include planning and design fees, surveying, authority fees, subdivision certification, service connections, and any reports or specialist advice required.

Subdivision and development costs can be significant, so a site must be assessed not just for physical feasibility, but also for commercial feasibility. A backyard subdivision only makes sense if the final value justifies the cost and risk.

Driveway width

A rear dwelling needs practical vehicle access. In Victoria, car parking access standards still require a driveway width of at least 3 metres in many cases, so the distance between the side of the house and the side boundary is critical.

If that clearance is too narrow, the site may simply not work for a backyard subdivision without major alteration to the existing dwelling

The location of the driveway is also important. Read more.

Read more or contact us for a complimentary high level advice.

We want to help you develop your land. But sometimes it is best to be honest up front.

Site 1 is good for a backyard subdivision..

It has a north facing backyard. ( top of image is North)

The driveway to the backyard measures 3m

There are no trees in the backyard or neighbouring backyards to worry about.

Spatial planning for a backyard.

Swarup has managed hundreds of Property Subdivision planning permits.

He developed his own dual occupancy subdivision where he faced stiff opposition from Council and neighbour's.

He is a Registered Planner and affiliated to the Australian Institute of Architects.

Dual Occupancy examples:

Duplex design for a South Australian project

Duplex on a narrow block in Maribyrnong Council

Backyard subdivision for daughter in Monash

Duplex in Glen Eira Council

Swarup's own dual occupancy was highly profitable.