Dwelling's dreadfully dire scene (9)
I believe the answer is:
residence
'dwelling's' is the definition.
(I've seen this in another clue)
'dreadfully dire scene' is the wordplay.
'dreadfully' indicates anagramming the letters (a dreadful spelling).
'dire'+'scene'='direscene'
'direscene' anagrammed gives 'RESIDENCE'.
(Other definitions for residence that I've seen before include "Place or house where one lives" , "flat, say" , "Dire scene (anag.)" , "Dwelling place" , "Person's home" .)