Two into one: Canberra suburbs where dual occupancies are popular

The quarter-acre block, has long been the Australian dream, particularly in the bush capital, but as the population continues to grow – in both size and age – this is becoming increasingly unsustainable, according to experts. Consequently, many Canberrans are looking to dual occupancies.

In 2017 there were 163 applications for dual occupancy developments, according to a spokesperson from the Environment, Planning and Sustainable Development Directorate, compared with 62 in 2016.

Property Council ACT executive director Adina Cirson said the attitude to sharing a plot is changing in Canberra.

“About 15 years ago there was resistance to the development of dual occupancies in the ACT and planning constraints were enacted,” she said.

“But community sentiment has changed and I think it would be great for the residential zoning to change and reflect that across Canberra.”

The ACT government is reviewing the ACT Planning Strategy through its Housing Choices project and a survey found more than 50 per cent of Canberrans want more dual occupancies in their area.

“We have a growing population but also an ageing population and people want to live within five kilometres of where they have spent most of their lives and built their community,” Ms Cirson said.

The ACT Property Council made a submission to the ACT government Housing Choices Discussion Paper earlier this year calling for a review of residential zoning to allow for different types of housing to come on to the market.

So what suburbs are popular for dual occupancies in the nation’s capital?

According to the Environment, Planning and Sustainable Development Directorate, the most popular suburbs for dual occupancies in 2017 were Lyons, Kambah, Garran and Hackett – areas with multiple Mr Fluffy blocks.

“The number of dual-occupancy developments on remediated former [asbestos-affected] Mr Fluffy blocks has contributed to the increase [of development applications],” said a spokesperson.

“Approximately 130 development applications have been lodged for dual-occupancy developments on remediated former Mr Fluffy blocks since the start of the program in 2015.”

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Of the 47 development applications for dual occupancies in Canberra, eight are in Kambah and all are former Mr Fluffy blocks.

Colliers International Associate Director of Residential, Josh Reid, said the large number of affected blocks in Kambah – more than 100 – have contributed to this, but there are also other factors at play.

“Buyers have been drawn to Kambah due to the average size of the blocks, wide street frontages and price points,” he said.

“They can still buy the land and still offer the finished product at an affordable level, where the demand sits.”

Kambah blocks are consistently one of the most popular at Mr Fluffy auctions. The southern suburb is also Canberra’s most populous with approximately 14,900 residents*.

Since Colliers took over the Mr Fluffy sales in September 2017, Mr Reid said about 50 per cent of Kambah blocks sold to buyers who intend to build a dual occupancy.

In Canberra, dual occupancies are possible only on blocks in a RZ1 zone over 800 square metres but under Mr Fluffy planning rules it is blocks over 700 square metres. However, there are a number of other eligibility factors that have to be taken into consideration.

“Not every block in a RZ1 zone over 700 square metres is suitable for a dual occupancy, there are a number of planning criteria that need to be met in order to gain approval,” Mr Reid said.

For developers, dual occupancies on Mr Fluffy blocks can be lucrative.

Back in March, a dual occupancy in Lyons on a former Mr Fluffy block sold for $1.350 million. The block at 21B Derwent Street was sold by the Asbestos Response Taskforce in May 2017 for $780,000.

“What the Mr Fluffy blocks have allowed us to do is almost a bit of a test case to see if dual occupancies are palatable to the community,” Ms Cirson said.

Ms Cirson added there was a desire in Canberra’s inner suburbs to develop.

According to 2017 sales data, the average block size of properties sold in the Inner South was 1010 square metres – the largest in the ACT. In spite of this, stricter planning rules in the inner south can prevent people undertaking dual occupancy developments.

Dual occupancies in the inner suburbs also deliver strong sales results. In May, one dual occupancy dwelling in Ainslie sold for $1 million. The original dwelling on the block also sold earlier this year for $985,000.

The ACT government is set to renew the Territory Plan next year, with the Housing Choices project guiding the development of this policy.

* Figure based on the 2016 Census

Dual occupancies currently for sale in Canberra

Chifley

16A Mauldon Street

Auction: August 4, 11am

3 bed, 2 bath, 2 parking

Agent: Ray White Canberra, Bree Parker & Cameron Crombie, 0450 566 150 & 0421 463 218

Kambah

18 Dinnison Circuit

$680,000+

3 bed, 2 bath, 2 parking

Agent: Peter Blackshaw Real Estate Tuggeranong, Robert Peaker, 0412 726 025

Griffith

73A Jansz Crescent

Auction: July 28, 10am

3 bed, 2 bath, 2 parking

Agent: Total Property Sales, Peter Baum, 0412 851 139 

Watson

28A Molesworth Street

Auction: July 28, 10:30am

3 bed, 1 bath, 1 parking

Agent: LJ Hooker Dickson, Nic Salter-Harding & Andrew Grenfell, 0412 600 085 & 0424 858 529