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It depends if you did the back lot under Grouped Dwelling or Battle Axe. With grouped dwelling you can get away with a smaller lot size but need to have that common property. With Battle Axe the lot size is bigger but the back lot owns the drive way. Did you (or past owners) do any reno to...

In my opinion yes it's a waste putting a duplex on it. Instead of 3-4 bedroom duplex in the rear you could have a nice 2 storey building with 2 of 3 bed, 2bath apartments. A staged development would keep holding costs as low as possible. Rent from the front house can help with the...