SUNSHINE COAST, QLD – Property investors across the Sunshine Coast are increasingly using second dwellings and granny flats as a way to improve rental yield and maximise the performance of existing assets, according to Environmental Building Designs. The design practice reports sustained investor interest in self-contained dwellings that allow dual income streams from a single property.
Rather than relying solely on capital growth, investors are looking for practical ways to strengthen cash flow. Second dwellings, commonly referred to as granny flats, are being used to generate additional rental income without the need to purchase new land, particularly in established residential areas.
Kaarlo Pesu, founder of Environmental Building Designs, said investors are becoming more design-conscious as margins tighten.
“Investors are asking more detailed questions than they did five or ten years ago,” Pesu said. “They want to know how a second dwelling will perform, how it affects the main residence, and whether the design stacks up over the long term.”
According to Pesu, the strongest outcomes come from designs that consider tenant appeal, privacy, and access from the outset. Poorly planned additions may technically meet planning requirements but fail to attract quality tenants or achieve the expected rental return.
“Yield isn’t just about adding another structure,” he said. “It’s about how that space functions, how separate it feels, and how well it fits within the site. Investors who approach it properly tend to see more czonsistent results.”
Environmental Building Designs works with investors to navigate Sunshine Coast planning controls, site coverage limits, and access requirements, which can significantly influence feasibility. Early design decisions, including dwelling size, orientation, and services separation, can affect both approval outcomes and ongoing rental performance.
Demand has been particularly strong for properties capable of supporting two distinct tenancies, allowing investors to spread risk and reduce vacancy exposure. In some cases, investors are retaining the main dwelling while renting the second dwelling; in others, both residences are leased independently.
Pesu said investors are also increasingly focused on adaptability.
“A second dwelling that works for renters today should also hold value if market conditions change,” he said. “That might mean future resale appeal, owner occupation, or multigenerational use down the track.”
Established in 1993, Environmental Building Designs provides architectural and building design services for residential and commercial projects, with a focus on sustainable, site-responsive outcomes. The firm regularly works with property investors seeking compliant, functional solutions that support long-term asset growth.
Interest in Granny Flat Designs on the Sunshine Coast continues to rise as investors look for measured ways to improve returns without overextending or overbuilding.
About Environmental Building Designs
Environmental Building Designs is a Sunshine Coast–based architectural and building design practice providing residential and commercial design services with a strong focus on sustainable outcomes. Established in 1993, the firm works with homeowners and investors to deliver practical, compliant designs that respond to site conditions, planning requirements, and long-term use.
Media Contact
Company Name: Environmental Building Designs
Contact Person: Kaarlo Pesu
Email: Send Email
Phone: +61 411 207 707
City: Sunshine Coast
State: QLD
Country: Australia
Website: https://environmentalbuildingdesigns.com.au