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Res 1, no overlays... good start. There are certainly units and infill development in the local area, although fairly modest. Roughly 220m2 or so of development land at the rear of the site if the OP were to keep the house with a 5m deep clear to sky backyard. Aerial below...

What's the site width at say the location of the shed? You also need to review the basics as well, check zone/overlays and the local policy in the planning scheme for a neighborhood character study.