Council developments over the past couple of weeks have shown approved applications in Johnston Street, where two run-down homes will be transformed into five units, and a multi-dwelling residential block set for Turvey Park. 

Local builder Wayne Carter said units provide an “economical way” for people to get into a house, without having to pay for a whole block. 

“Units offer smaller, lower maintenance yards which suit time poor people and the running costs are lower,” he said. 

Mr Carter said most corner blocks are devoted to dual occupancy properties as they use up the space. 

“It’s just a clever way of considering costs and getting your foot in the door,” he said. 

“The activity in Wagga is really strong at the moment; people have recognised the lifestyle costs and that housing and land packages are similar to yearly rental costs.” 

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Another local builder Matt Jenkins said there has been a slow rise of dual occupancy units due to a range of social factors. 

“There’s been a slow, not massive, increase in dual occupancy lots simply because of the cost of land and the cost of development plans rising steadily over the last 15 years,” he said. 

“Now we have to pay for the gas and water metres and services in the past that were paid by the service companies, so therefore the cost of develop plans are more expensive and the construction plans are rising. 

“There’s been no wage growth in the last eight years and with wage being stagnant and housing costs have risen, this causes affordability issues.” 

Mr Jenkins said the current situation with the banks “pulling back” and lowering Loan to Value Ratio’s means that new investors and first home buyers have no allowances for them to run over in the contracting, which results in them struggling or “unable” to afford a house. 

“Dual occupancy units are cheaper and a stepping stone to get into a three-bedroom home and this is virtually a three-bedroom house we used to build at the beginning of Glenfield and Tatton, but now we’re doing this on shared lots,” the local builder said. 

“If you’re a first home buyer, the unit market is a great stepping stone, as they’re about $100,000 cheaper than a house.

“They’re liked by investors because they have a high yield of return, the occupancy rates are quite reasonable to high and therefore the ability to rent out a new unit is fairly easy.” 

While Mr Jenkins said he has not noticed an increase in the market, units are “fairly buoyant” because of the affordability. 

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