Dual occupancy and granny flats on the NSW South Coast: rules, costs and what Eurobodalla allows

If you own a residential block in Eurobodalla, there are two main paths to adding a second dwelling. A dual occupancy puts two full self-contained homes on one lot, either side by side or as separate structures. A secondary dwelling, commonly called a granny flat, is a smaller self-contained unit on the same lot as your principal home, capped in size. Both are permitted in Eurobodalla's residential zones. The rules differ in what your block needs to qualify, which approval pathway applies, and whether you can eventually sell the two dwellings as separate properties.

Dual occupancy vs secondary dwelling: what is the difference?

A dual occupancy is two dwellings on one lot. It can be attached, meaning two homes sharing a common wall side by side or front to back, or detached, meaning two completely separate structures on the same title. Both dwellings are full-sized homes with no internal floor area cap. A dual occupancy can be strata-titled so each unit can be sold independently. Following an amendment to the Eurobodalla Local Environmental Plan gazetted in May 2026, Torrens title subdivision of a dual occupancy is also now an option in R2 zones under certain conditions, enabling the two dwellings to become separate freehold lots.

A secondary dwelling is capped at 60 square metres of internal floor area under the NSW Housing SEPP, or 65 per cent of the main dwelling's floor area if that figure is larger. It sits on the same lot as the principal home and cannot be separately titled or sold. It is a practical option for housing a family member, generating rental income, or adding a self-contained space without the cost or complexity of a full dual occupancy.

What Eurobodalla's planning rules allow

The Eurobodalla Local Environmental Plan 2012 permits both dual occupancies and secondary dwellings in residential zones. The R2 Low Density Residential zone covers most Eurobodalla towns. Under the NSW Government's Low and Mid-Rise Housing Policy Stage 1, which commenced 1 July 2024, dual occupancies are now permitted as-of-right in R2 zones across all of NSW (planning.nsw.gov.au). The Eurobodalla LEP does not set a specific minimum lot size for dual occupancy; each proposal is assessed on its merits against the Council's Development Control Plan (Eurobodalla LEP 2012).

Does my block qualify?

For a secondary dwelling approved via Complying Development Certificate, the standard requirements are a minimum lot area of 450 square metres, standard residential zoning, and no heritage listing or flood overlay exclusion.

For a dual occupancy under the Low-Rise Housing Diversity Code, where the LEP does not set a minimum lot size, the Code standard is 400 square metres. The block must also have at least 12 metres of frontage at the building line, and both structure types under the Code are capped at 8.5 metres in height and two storeys. One constraint applies to both approval types on the South Coast: if your block carries a Bushfire Attack Level rating of BAL-40 or BAL Flame Zone, the CDC pathway is not available and a Development Application to Eurobodalla Council is required instead. Many South Coast blocks carry a BAL rating due to proximity to bushland or national park. Our guide on BAL bushfire ratings explained covers how ratings are assigned and what they mean for construction requirements on your site.

Approval pathway: CDC or DA?

Secondary dwellings on compliant lots are generally approved via a Complying Development Certificate, issued by a private certifier without council assessment in around 10 business days. Dual occupancies in Eurobodalla are also eligible for the CDC pathway, since Eurobodalla already permitted dual occupancy before the July 2024 reform and was not subject to the temporary CDC switch-off that applied to some other NSW councils. If your block is BAL-40 or BAL Flame Zone, or if your design varies from standard code setback, height or coverage requirements, a Development Application to Eurobodalla Council is required instead. Eurobodalla Council averaged 66 days to determine DA applications between July and December 2025, well inside the NSW benchmark of 105 days (esc.nsw.gov.au). Our planning and approvals service page explains how Perrem manages this process, and the design-and-build process step by step covers where approvals sit in the overall build timeline.

What does it cost? (indicative figures)

Secondary dwellings: as a rough guide, a turn-key one-bedroom granny flat of around 50 square metres runs from approximately $145,000 to $185,000 in regional NSW. A two-bedroom 60-square-metre unit is typically $175,000 to $235,000 turn-key. These are May 2026 indicative figures from multiple builder pricing guides; South Coast costs vary with site conditions, finishes and access. Costs across the building industry are up roughly 5 per cent in the year to May 2026, driven by joinery, materials and labour.

Dual occupancy (two full dwellings): combined construction costs start from around $820,000 on the Central Coast, the nearest comparable coastal regional market. South Coast custom-quality builds vary with site, design complexity and finishes; budget for additional costs including site works, approvals, design and certifier fees, which can add $30,000 to $50,000 or more to the total. See our guide on what a custom home costs on the NSW South Coast for a detailed picture of build costs in the region.

Can I subdivide and sell the dwellings separately?

A secondary dwelling cannot be subdivided or sold separately from the principal home. Both remain on the one title.

A dual occupancy can be strata-titled, allowing each unit to be independently sold or leased. Since May 2026, an amendment to the Eurobodalla LEP (Amendment No. 21, gazetted May 2026) also permits Torrens title subdivision of a dual occupancy in R2 zones under certain conditions. The resulting lots can be below the 550-square-metre threshold that previously applied to Torrens subdivision in the Shire, provided the dual occupancy has been lawfully constructed. This is a meaningful change for investors and owner-occupiers who want the eventual option of selling one dwelling as a standalone freehold property. Confirm the specific conditions with Eurobodalla Council or a town planner before designing to this end.

Is it worth building on the South Coast?

A secondary dwelling suits homeowners who want to use land they already own, house a family member, or generate a rental income stream without the scale or cost of a full dual occupancy. The approval process for a compliant site is straightforward and the timeline is short. A dual occupancy makes sense where the block and budget allow, and the goal is two independent assets to sell, hold and rent, or use separately. The 2026 LEP amendment enabling Torrens subdivision in Eurobodalla strengthens the investment case specifically on this coast. Demand from Canberra sea-changers continues to run, the rental market around Batemans Bay and the wider Eurobodalla remains tight, and housing supply on the coast is constrained. A dual-income or dual-title property on the South Coast is a different proposition to the same block in a saturated metro market.

Frequently asked questions

Can I build a dual occupancy on any Eurobodalla residential block? In most cases, yes, if the block is in a residential zone. The Eurobodalla LEP 2012 sets no specific minimum lot size for dual occupancy; proposals are assessed on their merits against the Council DCP. Your block must not be subject to exclusions such as heritage listing or flood overlay. Also check your BAL rating, since BAL-40 and BAL Flame Zone sites require a DA rather than CDC approval.

What is the maximum floor area for a granny flat in NSW? Under the NSW Housing SEPP, a secondary dwelling is capped at 60 square metres of internal floor area. In regional NSW, it can be up to 65 per cent of the main dwelling's floor area if that figure exceeds 60 square metres. The secondary dwelling cannot be separately titled or sold.

Do I need a DA or can I use a CDC for a dual occupancy in Eurobodalla? For compliant secondary dwellings and dual occupancies in Eurobodalla, a CDC is generally available and is the faster path at around 10 business days. If your block is rated BAL-40 or BAL Flame Zone, or your design varies from standard code requirements, a DA to Eurobodalla Council is required. DA timeframes at Eurobodalla averaged 66 days in the second half of 2025.

Can I sell the two dwellings in a dual occupancy separately? Yes, via strata title each unit can be sold independently. Since May 2026, Eurobodalla LEP Amendment No. 21 also allows Torrens title subdivision of a dual occupancy in R2 zones under certain conditions, enabling each dwelling to become a separate freehold lot. A secondary dwelling cannot be separated from the principal title.

If you are considering a dual occupancy or secondary dwelling on the South Coast, talk to Perrem. We build both, manage the full design and planning process, and can confirm whether your block qualifies before you commit to anything. See our dual occupancy and duplex service page for more.