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DUPLEX
What is a duplex?
A duplex is a residential building that consists of two separate dwellings that share a common wall, roof, and sometimes a driveway or garage, but have distinct and independent entrances. Each dwelling in a duplex is a standalone home, with its own kitchen, bathroom, living areas, and outdoor spaces like a garden or courtyard. Duplex properties, unlike dual occupancies can be either strata titled on completion or subdivided into two separate properties without a body corporate. Alternatively, some property owners choose not to strata or subdivide their properties to reduce holding costs.
The configuration of a duplex property is usually a mirror image with 3 or 4 bedrooms each side with a single or double lockup garage. This property type is suitable for land lots that have wider street frontages and preferably a corner allotment. The common duplex configuration is side by side with a common wall, however they can also be stand alone on the same allotment or upstairs/downstairs.
There are many uses for this type of property.
Investment Property: Duplexes are popular among property investors because they can generate rental income from two tenants while occupying a single land parcel.
Multigenerational Living: Duplexes are also used for multigenerational living, where one unit might house elderly parents or adult children, providing proximity while maintaining independence.
Affordable Housing: Duplexes offer a more affordable housing option compared to standalone houses, both for buyers and renters, as they make efficient use of land.
Planning and zoning regulations vary between each state in Australia.
Council Approval: Building a duplex typically requires planning approval (Development Approval) from the local council, which will assess the proposal against local zoning laws, building codes, and density requirements. If the duplex is not a permissible use then you will need to apply for a Material Change of use (MCU) which can be difficult if there is no precedent in the same street.
Zoning Compliance: Duplexes are usually permitted in residential zones, but specific rules regarding lot size, street frontage, building height, setbacks, and parking often apply.
Why invest in a duplex?
Investing in a duplex has many advantages over traditional house including:
Equity Creation: On completion of the duplex and subsequent strata or subdivision of the property the combined value of the two properties is likely to be 10-20% higher than the previous single property title. Once the duplex has separate title, the owner can sell one duplex unit and reduce the overall debt on the remaining duplex unit, refinance the properties to release the equity to buy another property or sell both.
High Demand: Rising property prices, particularly in major cities like Sydney, Melbourne, and Brisbane, have made it difficult for younger generations to afford their own homes. As a result, more young adults are staying longer with their parents or moving back in after a period of independence. Additionally, Australia’s aging population has led to an increased need for elder care. Many families opt for intergenerational living to provide care and support for aging parents or grandparents within the home, rather than relying on external aged care facilities.
Affordability: Duplex properties are typically a lower entry point than a standard house in the same area.
Flexibility: These properties can be utilised as an investment property, an owner occupier dwelling or both at the same time making it ideal for investors, intergenerational families and first home buyers.
Attractive Returns: A duplex property provides a higher gross yield than a traditional house with the owner receiving up to two rental incomes however the rental yield is usually not as high as a dual occupancy due to strata and subdivision costs which can be up to $50,000.
Why use The Property Room?
We have built over 100 duplex properties for our clients in various regions including Newcastle, Toowoomba, Townsville, Mackay, Brisbane and southeast QLD.
Area Research: With our extensive experience of building many duplex properties we have a good understanding of which areas provide the best capital growth combined with strong cashflow. Finding land that will allow you to build a duplex without the risk of council not approving the development is difficult.
Local Government Regulations: We are very familiar with where you can build a duplex property, and the process involved.
Configuration: We understand the configurations that work best for investors and owner occupiers to maximise rental returns, capital growth and equity on completion of strata/subdivision.
