First published 12 Nov 2026, 4:33pm
A tiny house in the NSW Southern Highlands is proving that good things can come in small packages.
Perched on a 1165sqm block overlooking Morton National Park, the relocatable home at 35 Osborne Street, Bundanoon , has generated more than $35,000 a year in gross Airbnb revenue over the past two years.
Known as The Lazy Duck, the one-bedroom retreat occupies an enviable position at the top of a hill, less than 500 metres from the centre of Bundanoon.
A tiny home on a large block has been listed for sale in the Southern Highlands. Picture: realestate.com.au/buy
Surrounded by established gardens, the property enjoys panoramic views across the national park's valleys and escarpments. And with the village tucked behind the hill, there's an unexpected bonus after dark.
"There's not a man-made light anywhere in the view," says selling agent Paul Macefield of Highland Southern Highlands.
The property earns about $35,000 per year as a short-term rental. Picture: realestate.com.au/buy
The tiny house itself has travelled some distance to reach its picturesque perch.
Owner and mindfulness coach Robert Henderson says he and his former partner originally discovered The Lazy Duck while selling a rural property in Exeter.
The tiny home was relocated to the leafy block a few years ago. Picture: realestate.com.au/buy
The dwelling was already operating as holiday accommodation on a property called Duck Lake, complete with its own name, branding and furnishings.
"That tiny house came with all the merchandising, all the labelling. All you had to do was make the bed, you know, and off you go," Henderson says.
"We just took over the books and just changed the address and the ownership and it was all done."
There is about as much internal space as a large bedroom. Picture: realestate.com.au/buy
The pair relocated the tiny house to Bundanoon, where it has since attracted predominantly Sydney visitors, including couples seeking a weekend escape and guests attending retreats in the Southern Highlands.
Macefield, who manages The Lazy Duck, says its annual earnings have been achieved with little active promotion and a flat nightly rate of $317.
A loft bed with skylight allows visitors to sleep under the stars. Picture: realestate.com.au/buy
He believes more active marketing and flexible pricing could significantly boost its earning potential.
"I really think you could double the income if you offer cheaper rates during the week and you pushed it."
It includes a lounge nook with views of the nearby national park. Picture: realestate.com.au/buy
For Henderson, the little dwelling has served as both an income stream and a personal retreat.
Before relocating overseas, he spent three months living in the tiny house, an experience that required some adjustment for a man accustomed to a considerably larger wardrobe.
"I learned to be very, very resourceful," he laughs.
The little house includes a kitchen, bathroom, bed and seating area in just 18sqm of internal space. Picture: realestate.com.au/buy
"It's a perfect getaway. It's a perfect artist retreat. It's a perfect additional income," he says.
A keen horticulturist, Henderson is equally enthusiastic about Bundanoon's fertile soil and distinctly seasonal character.
"We have beautiful deciduous trees, we have beautiful herbaceous perennial borders, beautiful spring bulbs ... and the changing seasons," he says.
The property could offer passive income while buyers plan a more substantial home for the block. Picture: realestate.com.au/buy
He describes the village, once a more traditional working town, as having evolved into a creative and character-filled corner of the Southern Highlands.
Back on the property, the sizeable block also presents an opportunity for buyers with bigger plans.
The tiny house sits on a wheeled chassis and can be relocated, potentially allowing a buyer to pursue plans for a larger home on the block, subject to council approval.
Macefield believes the site would lend itself particularly well to a passive-solar home, designed to capture northern sunlight while making the most of the sweeping southern views.
The property is situated next to Morton National Park. Picture: realestate.com.au/buy
And whether The Lazy Duck remains a holiday retreat or makes way for a new home, the magic of the setting remains.
"The ground has energy in it that is unbelievable," Henderson says.
"Just go there and let it look after you."
The property has a price guide of $795,000.
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