5 ways to make two homes on one block actually work

With a growing desire for affordable housing and innovative design, knocking down one home and using the land to build two brand-new abodes is becoming increasingly popular.

Dual-occupancy dwellings are popping up in cities across Australia, and it’s no wonder—they’re both financially attractive and a great way to breathe new life into an older property.

It’s a solution that appeals to both owner-occupiers and investors alike, and it’s a fantastic way to increase housing supply in high-demand locations.

But, like all building journeys, planning is key. Here are some things you’ll need to know:

1. Understand the essential design principles

To create a successful dual-occupancy home, it must have the right features.

David Shorten, Metricon NSW General Manager, says it’s different from a typical home build because you have to consider both shared and private spaces—and the liveability of each dwelling.

“It’s important to make the most of your floor space, ensure each one has independent access, and balance internal functionality with outdoor use,” he shares.

Home builders of a dual residence will also have different needs depending on how they plan to use the homes.

Investors may want to maximise speed and profit, while owner-occupiers will be more focused on tailoring the space to their lifestyle.

“Often, buyers plan to live in one unit and rent out the other,” Shorten says.

“In these cases, they’ll typically upgrade the unit they’re living in to suit their individual style, while keeping the second unit more neutral to appeal to a broader rental market.”

 2. How to ace privacy  

Privacy is one of the major considerations when designing a dual-occupancy home. 

Luckily, there are many effective ways to make these homes feel like individual sanctuaries.

Shorten says Metricon uses a host of strategies in the design phase “to create two homes that feel separate and private, but also cohesive”.

“Features like three-metre rear setbacks and internal acoustic insulation help maintain comfort and quiet, even with neighbours under the same roofline,” he shares.

Home builders can also consider separate pathways, driveways, double-glazing, strategic positioning of rooms, landscaping to minimise visual intrusion, and privacy screens.

3. Optimise your space

A dual-occupancy design means putting at least two properties on a single block, so naturally this means less space to play with for each home. 

But that doesn’t mean you can’t build beautiful, spacious homes.

The first step is to understand the design rules and local regulations for your block, says Shorten. 

He highlights NSW’s Complying Development Certificate (CDC)—a streamlined planning approval process – as particularly helpful in dual occupancy builds.

“The guidelines allow homeowners to build on up to 450sqm on a 600sqm block, compared to just 300sqm under traditional approvals in some councils,” he says.

“That extra 150sqm can make all the difference in creating functional spaces like extra bedrooms, media rooms, or alfresco zones.”

Shorten also notes that for many blocks, designing a dual-occupancy home from scratch can be tedious, costly, and unnecessary. 

He points to DualOcc by Metricon, which offers a variety of designs already configured to maximise space across different block sizes.

These plans also incorporate a whole host of smart inclusions—from efficient storage solutions and compact laundries to open layouts—to ensure every inch of space counts.

4. Finding the right aesthetic 

Most dual occupancies are built side-by-side, so a beautiful and cohesive streetscape is essential.

To nail the unified look, Shorten recommends using complementary colours, materials, and architectural styles.

“Lighter colour palettes are increasingly popular, not just for their timeless appeal but also for their benefits in heating and cooling,” Shorten explains.

“We’re seeing strong interest in Scandinavian, Hamptons, and Mediterranean-inspired interiors too. At Studio M, our designers curate themes that align with each buyer’s personal taste, while also considering long-term resale value.”

However, Shorten adds that the two residences don’t need to be exactly the same. Small personal touches are a great way to create distinction.

Think different garden plantings, unique decorative features, or even contrasting mailboxes.

“It’s important to make the homes feel connected – but not identical,” he says.

5. Streamline the process

Building one house can be challenging enough—let alone two—so it helps to have expert guidance from the start.

“One of the biggest challenges for buyers is navigating the complexity of approvals and design,” says Shorten.

“Metricon simplifies this by managing the entire process, from checking compliance to handling reports, plans, and approvals.”

He adds that this allows clients to “focus on their future home, not the paperwork”—and can also reduce unnecessary costs tied to redundant reports or delays.

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