03 — Townhouse
Townhouse Development Feasibility — Melbourne
Townhouse development means three or more dwellings on one lot, usually subdivided into individual titles. It is where Melbourne's infill value is — but it is also where planning rules, services and site geometry get demanding. Feasibility tells you whether the numbers work before you buy the drawings.
What a Townhouse Development Involves
A townhouse project combines a multi-dwelling building permit with a subdivision into separate lots. Each dwelling needs its own access, private open space, parking and title. The assessment runs through Clause 55 (dwellings) and Clause 56 (subdivision), plus the zone schedule's minimum lot size and garden area controls.
Townhouse feasibility in Melbourne is decided by the same inputs as a dual occupancy, plus a few extra: site width for driveways and turning, sewer and water capacity for multiple connections, and the subdivision geometry — can the rear lot be serviced with a practical driveway?
Site Selection for a Townhouse Project
The best townhouse sites have a wide frontage, a flat or gently sloping block, and a shape that allows each dwelling good access. Corner blocks and sites on bus routes can support higher density. Sites with significant slope, a heritage overlay, or a sewer main across the building area are far harder.
- Frontage and access — enough width for a shared or separate driveway
- Site area and shape — rear lots need practical access and turning
- Easements and services — sewer, water and drainage lines across the building envelope
- Trees and vegetation — canopy trees can trigger significant protection requirements
- Neighbouring character — what has been approved nearby is a strong signal of what will be
The Planning Assessment
Your feasibility report checks the zone schedule's minimum lot size, the garden area requirement (commonly 35% for the site in GRZ, or per schedule), building height, setbacks and parking. It also identifies overlays that can stop a project — heritage, neighbourhood character and vegetation overlays are the ones that commonly bite in established suburbs.
We also compare your site against nearby approved projects: if the surrounding street has already been subdivided or developed with two or more dwellings, the council precedent is strongly in your favour.
Costs and Returns
Townhouse developments spread the land cost across more dwellings but add subdivision, services and marketing costs. Our report provides an indicative total floor area and build cost range so you can model the end value against the all-in cost — including the council fees you should expect.
Frequently Asked Questions
How many townhouses can I build on my Melbourne block?
The zone schedule sets the minimum lot size and garden area, which determines the maximum number of lots. A 700 m² block in a zone allowing 350 m² lots could support two, while a wide 900 m² site might support three. The free feasibility check shows your zone schedule and buildable area.
Do townhouse developments need a planning permit?
Yes — multi-dwelling development (Clause 55) and subdivision (Clause 56) both need permits in nearly every residential zone in Melbourne.
What is the garden area requirement for townhouses?
For a site in GRZ with a lot size above 650 m², the standard is 35% of the site as garden area; below that it is typically 30% or per the schedule. The schedule to your specific zone overrides the standard.
How long does a townhouse development take in Melbourne?
Planning permit assessment is commonly 4–8 months for a multi-dwelling project, followed by building permits and construction. Feasibility happens first — a few days of analysis that can save months of wasted design.
04 — Start a Project
Contact & Inquiry
Tell us about your site and brief. We'll respond with clear next steps and structured design options.
Location
Victoria, Australia
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