The Ultimate Guide to Dual Occupancy & Duplex Developments in Melbourne’s Inner-West
If you’re considering Dual Occupancy in Melbourne’s Inner-West, now is the time to take action. With rising land values, evolving council planning frameworks, and strong demand for high-quality homes, suburbs like Williamstown, Altona, Frankston, Glenroy, and Hampton are full of untapped opportunity. Whether you’re looking to generate income, support your family, or maximise your land’s value, this comprehensive guide will walk you through everything you need to know to get started.
Table of Contents
- Why Dual Occupancy Is Gaining Momentum in Melbourne
- Council Approvals & Permit Process
- What Are the Returns Like?
- Why Mum-and-Dad Investors Are Leading the Charge
- FAQs
- Let’s Create. Redefine. Living.
Why Dual Occupancy Is Gaining Momentum in Melbourne
The rising cost of housing, limited land availability, and shifting family needs are pushing more Melbourne homeowners—especially in the inner-west—to consider dual occupancy. These developments not only make better use of generous block sizes common in older suburbs, but also allow families to stay close while living independently.
For example, in Altona North, a family recently built a rear unit to allow their ageing parents to live nearby. In Glenroy, investors are capitalising on zoning changes that now permit more than one dwelling on a single lot.
Additional factors fuelling demand:
- Stamp duty savings: Building rather than buying two separate properties can significantly reduce costs.
- Downsizing locally: Many homeowners are choosing to subdivide, build, and move into the new dwelling while selling or renting out the original one.
- Lifestyle-driven choices: Suburbs like Frankston and Williamstown offer proximity to the beach, schools, and public transport, making them ideal for renters and buyers alike.
Council Approvals & Permit Process
Update for 2025: Recent changes to Victoria’s planning system are making dual occupancy approvals faster and more consistent. To learn how the new VC267 Amendment and Townhouse and Low-Rise Code could benefit your project, read our full article: How VC267 is Changing Dual Occupancy in Melbourne.
Navigating council requirements can seem overwhelming at first—but with the right advice, it’s entirely manageable. Each local council has its own planning scheme, influenced by zoning laws, neighbourhood character, and overlays (e.g., heritage or flood zones).
Here’s a more detailed look at what you’ll typically face:
Pre-Design Feasibility Study
- Assesses whether your block supports a second dwelling. Considerations include minimum lot size, access, gradient, and orientation.
Planning Application Submission
- Requires site plans, shadow diagrams, a planning report, and potentially a traffic impact statement.
Public Notice (Advertising)
- Neighbours are notified and can object, which may lead to further negotiations or design tweaks.
Permit Decision
- If compliant, your application proceeds to approval. If not, you may need to appeal or adjust the design.
Working Drawings & Building Permit
- The green light to start building. Includes structural drawings, energy ratings, and service designs.
Tips for Success:
- Engage early with a designer familiar with councils like Hobsons Bay (Altona/Williamstown) or Moreland (Glenroy).
- Understand overlays: Heritage controls in Williamstown may restrict external changes, while coastal overlays in Frankston could influence stormwater management.
- Be patient: The planning process can take 6–12 months, depending on complexity and council responsiveness.
What Are the Returns Like?
Dual occupancy projects can deliver strong returns—both in equity uplift and rental income (figures for market conditions 2024–2025).
Let’s break it down with some possible sample scenarios:
| Suburb | Land Cost | Build Cost (2 x 3BR) | Sale Price (each) | Total Profit (approx.) |
|---|---|---|---|---|
| Altona North | $950,000 | $850,000 | $1.05M | $300,000+ |
| Glenroy | $780,000 | $850,000 | $950,000 | $270,000+ |
| Frankston | $680,000 | $850,000 | $900,000 | $270,000+ |
Rental Yield Insight:
- Many Mum-and-Dad developers choose to hold one dwelling and rent it out.
- In suburbs like Frankston and Glenroy, it’s common to see rental yields of 4.5%–5.5%, especially for new builds.
Tip: Consider keeping one unit for steady income and selling the other to free up capital.
Why Mum-and-Dad Investors Are Leading the Charge
Traditional investors are no longer the only ones playing the development game. Everyday families—parents nearing retirement, couples with teenage kids, or even multi-generational households—are now the primary drivers of dual occupancy growth.
Here’s why they’re diving in:
- “We want to help the kids get a start” – Parents in Brighton are subdividing their large blocks to create a smaller home for their adult children.
- “We’re planning for retirement” – In Altona, couples nearing retirement are downsizing to a new rear unit and selling the front home to fund retirement.
- “We saw what our neighbours did” – In Hampton, word-of-mouth success stories inspire others on the same street to consider similar projects.
Why this strategy works for beginners:
- Lower risk than multi-unit developments
- Easier to fund and stage
- Offers multiple exit strategies: sell both, keep one, rent both
Pro Tip: Work with a team who understands your goals—not just council rules. This can make a huge difference in outcome and peace of mind.
FAQs
1. Is dual occupancy allowed in Williamstown or Altona?
Yes, both suburbs fall under the Hobsons Bay Planning Scheme, which allows dual occupancy on suitable lots—subject to zoning, overlays, and planning approval.
2. What’s the minimum land size needed in Glenroy for a dual occupancy?
Generally, 500m² or more is recommended, though corner blocks or wider frontages may allow more flexibility under Moreland City Council guidelines.
3. Can I build a duplex in Frankston without subdividing?
Yes, but if you plan to sell them separately, you’ll need to go through a subdivision process. Frankston Council supports dual occupancy but will assess each application individually.
4. How long does the planning permit process usually take in Brighton or Hampton?
These Bayside suburbs often have heritage or character overlays, so allow 6–12 months from initial design to planning approval.
5. Are dual occupancy homes good for rental income in Altona North?
Absolutely. Altona North has strong rental demand from families and professionals, with new 3-bedroom homes fetching between $650–$750 per week.
6. What if my block is sloped or has easements?
Design solutions exist! Sloping sites (common in Frankston) may cost more in site works but can offer great views. Easements can limit buildable area but can often be worked around.
7. Can I live in one unit and sell the other?
Yes! This is a popular strategy in Glenroy and Williamstown, where homeowners choose to downsize into one dwelling and sell or lease the second.
Let’s create. redefine. living.
Ready to start your Dual Occupancy in Melbourne’s Inner-West? TOUCH BASE WITH US
Contact Barnes & Matina today for expert guidance tailored to your vision and the unique requirements of your architectural landscape.
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