Building a second dwelling at the rear of an existing property is one of the most popular development strategies in Melbourne. It allows owners to extract value from underutilised backyard space — whether for rental income, extended family, or future sale after subdivision.
Access Requirements
The access driveway from the street to the rear dwelling is often the most constrained element of a rear dwelling project.
- Minimum 3.0m driveway width (3.5m preferred)
- Maximum gradient 1:4 at street interface
- Pedestrian path required alongside vehicle access
- Turning area required for longer accessways
Planning Permit Considerations
Most rear dwelling proposals require a planning permit under ResCode. Key issues typically assessed include overlooking and overshadowing impacts, the quality and liveability of the proposed dwelling, and the suitability of the accessway.
Design Ideas for Rear Dwellings
Rear dwellings work best when designed to take advantage of solar access and garden outlooks rather than simply being squeezed into leftover space — single-storey pavilion-style homes, elevated designs capturing garden views, and compact two-storey layouts with rooftop terraces.
Typical Project Costs
Construction costs for a rear dwelling in Melbourne typically range from $250,000 to $500,000+ depending on size, finishes, and site conditions, plus design, planning and building permit fees.