Townhouses are proving to be an attractive option across Melbourne for both owner occupiers and investors alike. The demand for townhouses reflects the growing desire for new and low maintenance properties in convenient locations.
The availability of quality townhouses in inner city areas allows buyers who are looking for affordable options close to the city to purchase what is essentially a full-size home. Townhouses range in price depending on location and size of the building, but due to the smaller land quota the purchase cost is generally much lower than a full lot with a detached house. Townhouse developments tend to be in convenient locations with easy access to amenities such as public transport and shopping areas.
Data from the 2016 Census shows an increase in the number of townhouse development approvals. This reflects a definite shift towards denser housing. While we tend to think this means more high density apartments, it is actually medium density approvals that have shown the largest increase.
Less land available in close proximity to the city means whatever is on offer tends to be used to its full potential. While traditionally lots with a detached dwelling have seen a ratio of approximately 1:08 land to dwelling, townhouses being built over multiple levels allow for full-sized homes to be erected on much smaller lots. This usually means a significantly lower purchase price, and if the property is new, there can also be generous stamp duty savings for owner occupiers.
As long as we have underinvestment in infrastructure in outer suburbs, there will continue to be many benefits associated with living closer to the city and townhouses are proving to be an affordable way of accomplishing this. Well located townhouses will continue to do well value wise, due to their affordability and proximity to amenities.
There has also been an increase the number of townhouse approvals in Melbourne’s outer growth suburbs. With restrictions in the inner city sometimes affecting the number of dwellings, some developers are opting to build medium density properties in some outer suburbs. Developers are factoring in townhouses as part of the master planning of communities, to accomodate the needs of a growing population. These master plans include focuses on community areas such as parks, playgrounds and BBQs, as part of the total development.
When we are looking at affordability constraints and lifestyle choices, as well as a swelling population, we are likely to see continued growth in the townhouse market. According to the Urban Development Institute of Australia it is expected that in the coming years dwellings other than houses will be the majority of residential building commencements throughout Victoria.
As with any successful real estate purchase it is important to make an informed decision about where and what you are buying. Contact us to find out more about great townhouse options in popular locations.