A consent decision provided by the Dunedin City Council said the development in Brunel St and Glenpark Ave was happening in two stages.
Stage 1 would consist of 10 units with an access lot, the decision said.
Stage 2 would be developed into nine units, seven of which would be three-storey units with car parking on the ground floor.
The remaining two units would be two-storey units with no internal parking, the decision said.
The decision noted an initial consent was granted last year but the applicant, Brunel Street Ltd, later applied for an additional land use consent to allow for the units in Stage 2 to be used as visitor accommodation.
"Consent for visitor accommodation will, however, provide the owners with the option to rent their respective units out as short-term rentals such as an Airbnb."
The council decision said that unlike a motel, the visitor accommodation would be "low-key", because of each unit’s individual owner.
There would be no manager’s office, it said.
The units’ use as visitor accommodation was unlikely to have a significantly different effect on the neighbourhood compared to residential units, the decision said.
Among several conditions imposed by the council was that if multiple units were owned by the same owner, only one could be used as visitor accommodation.
