An overshadowed, small Annandale block the challenge for this week's Grand Designs

This week's episode of Grand Designs Australia features an house in Annandale that is being built on a small empty allotment overshadowed by a large building either side, one of which is heritage listed.

Brett and Rees are wanting to upsize but don’t want to leave the inner west-suburb of Sydney Annandale, so have chosen to build on the small empty allotment behind their apartment.

The Annandale house has been in the works for eight years due to the possibility of the heritage-listed building next to it that may collapse.

The property will start with a basement car park with connecting stairs from the laneway leading up to the main entrance.

The hallway will be a glass atrium; the property will need both artificial and natural light due to the overshadowing buildings.

The large master bedroom will have its own kitchenette and a resort-style open-plan bathroom.

The top tier will play host to a spacious living and kitchen area.

The main feature of the house is set to be a central transparent plunge pool with jets.

Another bedroom is located near the front of the house next to a study.

Grand Designs host and Australian architect Peter Maddison says it is a compact home that must use every iota of space to its full advantage.

The median sale price for Annandale is $893,000, and the indicative gross rental yield is 3.9%.

A property located at 2 Collins Street, Annandale, is currently on the market with a listing price of $865,000. It last sold in 2008 for $425,000.

A property at 63 Young Street, Annandale, has an asking price of $920,000. It last sold in 2009 for $810,000.

Last week Grand Designs Australia featured a luxurious beach house in Bryon Bay.

The Annandale urban house episode will air on the Lifestyle channel on November 22 at 8.30pm.