A Beginner’s Guide To Townhouse Development In Victoria

You might be interested in a townhouse development in Melbourne for several reasons. From saving money on construction to making money through greater rental returns, townhouse developments in Melbourne are becoming increasingly popular.

If you’re new to the field, looking for resources and planning every step can become a complicated task, especially in this competitive market. Trust us. We’ve been there.

So to make it easier for you, today we’ll share our years of experience and everything you need to know about townhouse developments to make your journey smooth sailing till the very last step!

Let’s begin, shall we?

Where to get started with townhouse developments? 

First things first, townhouse development plans don’t start with construction. They start from the moment you go around looking for the perfect land where you can build one. 

The perfect site analysis is a story of its own, and it’s better to consult professionals to make the most of your investment. However, if you’re going land hunting on your own, here are 4 factors you should learn more about before making a decision.

Location 

Location is one crucial factor to be considered before anything else. The land’s proximity to various amenities makes it an attractive option for development. Town centers are also likely to be more densely populated than remote areas, adding value to the location’s demand.

Whether you sell or rent out the land, these amenities ensure that your investment will likely make a big return in the long run. 

Consider your location in terms of one or more of the following aspects if you’re aiming for greater profit:

Availability of services – is there a school zone, shops, or hospital nearby? Are shops, schools, and health services close to streets or public transportation?

The visual appeal of the area – Does the space have visual appeal? Would your home style be compatible with the neighborhood? Is the cityscape lively and friendly? Are there enough open spaces? 

Neighborhood – is it typically a residential area, or are some commercial areas nearby? Are there recreational activities close to your location?

Transport – is it close to public transport? Is there a traffic congestion problem? Are there bike paths nearby? 

Accessibility – are you targeting tenants who would live in rural or remote areas? Can the site be expanded, or will it be expensive to bring in the necessary materials?

Size 

The design of your home will largely depend on the size and shape of the land you buy. 

To proceed, you also need to know the minimum land size for townhouse development, yet Victoria has no one-size-fits-all Minimum Lot Size (MLS) requirement. This means the smallest lot size an individual can purchase is not always spelled out. There is a higher concentration of MLS listings for rural properties than for urban ones. 

For properties not located in the MLS, it is important to note that you must meet various other requirements to develop a property in Victoria that complies with regulations. Minimum open space, setback distance from the road, and density requirements dictate the number of dwellings per space. 

Your development requirements will vary depending on the land’s current and intended use. Generally, a rule of thumb of 300 square meters can be applied, but you must still refer to the local council for your specific case.

Zone 

With the details mentioned above in mind, consider planning your land before purchasing. Is it desirable to subdivide? 

Can the dimensions of the land fit the plans you have for it? For planning, it is important to understand the different types of zones and their purposes because they answer most of your questions.

Also, remember to ask about any building proposals or future developments tied to the area, as they may affect your plans or council approval for construction. Requirements in a zone are directly related to how you can utilize your land for subdivisions or design. 

Knowing different residential zone requirements also allows you to understand what the future will look like for this certain townhouse location, bringing more insight into your planning.

Regulations 

Townhouse developers should know all the legal obligations of land subdivision and basic residential building codes. To build on the land, you first need the local council’s approval of the proposed development and permission to subdivide. 

Stages of townhouse development 

Once you have finalized your land, it’s time to start planning for your townhouse development project. Experts often use a six-stage process to reduce development risk and ensure that the best outcome is achieved on every project.

The stages of townhouse development in Victoria will look somewhat the same for you, so make sure to understand your journey before making a plan.

1. Market research 

Eventually, the design and appeal of your townhouse will be based on the demographics of your area. There are several ways to explore the real estate market in your area, including researching current databases, contacting local government authorities, and talking to real estate agents and the Australian Bureau of Statistics (ABS).

Market research is crucial before design and townhouse construction to help you understand the neighborhood better and implement details that will attract more tenants or increase your property value in the long run.

2. Site constraints and opportunities 

Many factors can influence site constraints, including whether the site is located in a rural area and surrounded by other agricultural properties, restrictions on the use of vehicles or traffic hazards, local infrastructure, and climatic constraints (e.g., flooding or storms).

On the other hand, your site can bring many opportunities depending on its scenic beauty and access to local features like gardens, subways, schools, and hospitals. The site’s access to sunlight and other natural features also positively impacts development and profit.

A feasibility study with an experienced professional can help you evaluate your site for faults. It is often easy to see why a property might be a good investment and why you would want to consider it if you were interested in purchasing it. 

You’re signing up for a disaster immediately without a feasibility study to evaluate your development’s value and design practicality. Feasibility studies assess potential benefits and risks associated with your property venture and decide whether it is worth proceeding with.

3. Finance 

Most new developers looking to build townhouses find it difficult to find their project or are under budget and left with no contingency plan. If you get this wrong, the consequences will be very serious. 

You need to confirm funding before purchasing. Ask about their requirements and fees if you are interested in borrowing money from a  lending institution.

4. Design stage 

Beautiful aesthetics are not the only factor determining whether a design is brilliant. To use the information you have gathered, you need to convert it. Layout design can be complex and calculating. 

Consulting the right architecture will help you envision your ideal townhouse while sticking to regulations and utilizing space correctly. Your interests or investment preferences should not override the neighborhood character in Victoria.

5. Obtaining council approval  

When you have the land and have a sketch design of the development, you should hold a pre-application meeting with Council to obtain initial support for the increased residency. Pay close attention to the Council planner’s feedback and let your expert architects make the most of it.

Once you’ve acquired a Planning Permit, be prepared for the conditions that come with it. Your architects will have read the conditions and determined what needs to be done at this stage to be included in the drawings and documents. The construction drawings should be sent back to Council for Council to get stamped and approved.

6. Construction 

All the items required by Council will need to be included during construction. 

Your engineer and architect will work together in this phase. When your engineers are done considering designs and giving them more depth, your architects will check that the work conforms to the architectural drawings and coordinate those drawings. 

With everything decided, the final step is to get a Building Permit from a surveyor. It may be a private building surveyor or one appointed by the council. After receiving your building permit, it’s time for construction.

When your builder has finished construction, you will need your Building Surveyor to issue an Occupancy Certificate, and that’s where the process of townhouse development ends for everyone.

7. Subdivision & Title registration 

In the case of subdivision for townhouse development, you will need to appoint a Land Surveyor to draft the plan of subdivision and a conveyancer or solicitor to register the title so that each townhouse is on its Title for sales and settlement.

How much does it cost to build a townhouse? 

If you’ve made it this far, you must already know that the average cost of building a townhouse can vary greatly from project to project based on many factors like land size, location, zone, design, and material availability.

If you have already found your perfect land and wish to move ahead with planning, it’s better to call the leading experts in Victoria for consultation and the closest estimate for your budget.

SQM Architects – consult the experts at any stage of development!  

Now you know our method, our principles, and our values. We value being transparent and guiding our clients throughout their townhouse development process.
At SQM Architects, we offer a range of services to make your townhouses the most successful and stunning piece of property anywhere in Victoria. Consult our experts at any stage of development, and we will guide you toward the best outcome!