Melbourne Townhouse Development Project Costs in 2024
With Melbourne’s incredible growth over the past few years, it’s no wonder our city is a popular location for unit developments. Melbourne townhouse developments have maintained the potential of an impressive ROI, even with recent changes in the industry. This is due to Melbourne’s liveability status, and all the benefits of having prime location suburbs, enabling a family lifestyle alongside city life.
Regardless of whether you’re a seasoned developer, or dipping your toes into this type of investment, the first step is to assess the viability of your project.
Costs, markets and sale prices change, so it’s important to keep your finger on the pulse (or contact someone who does) when it comes to the current Townhouse Costs in Melbourne.
Getting a professional estimate on the total cost of your new Melbourne townhouse is only ever going to be that – an estimate – but with an experienced development builder, you can trust their experience of market cycles, and industry knowledge will get you close to an accurate ROI (return on investment) figure.
The best step is to speak with one of our team members about your unique situation, but we can provide you with general guidelines here, so let’s get some questions answered.
What determines the total cost of a Townhouse in Melbourne?
Your Melbourne townhouse development usually involves knocking down an older dwelling on a larger block of land, subdividing the land and building more than one dwelling (townhouse) in its place.
Every block of land will be different, and bring unique challenges, all altering the costs involved. Some of the factors involved that impact the cost of your Townhouse in Melbourne are:
- Location
- Size
- Shape
- Frontage
- Slope
- Orientation of the land
- Neighbouring properties
- Easements and verge items
- Overlays
If your property has neighbouring properties … If you have an easement on your site … If you have have a sloped block, or an irregular shape .. all these things change what you are able to build according to regulations, and also impact costs.
Additional costs are incurred with tricky sized blocks, easements to work around, properties to consider in terms of window placement, and more.
The good news is, with an experience multi-unit design and construct team like delcon, these are challenges we work with and overcome every single day.
Cookie cutter, volume builds don’t work with any type of block that isn’t regular. In over a decade of developments, we’ve never built the design twice. What’s needed for successful financial return is a custom designed project that is aligned to your unique financial goals. And these differ according to whether you have a long or short term strategy and intend to rent or sell the properties.
A reliable costing of your Melbourne townhouse development project takes into consideration the unique challenges of your land. When you contact us, we’ll ask you a range of questions based on our experience, and be able to accurately estimate the potential of your townhouse development with a free feasibility assessment.
The costs we consider in our Feasibility Assessment for your Townhouse Project include:
- Land costs: The cost to buy the land and stamp duty.
- Finance costs: Your initial deposit, as well as any loan fees, interest rates for both land and construction, and lender’s mortgage insurance (LMI) if applicable.
- Construction costs: Includes everything from building design, planning assistance, and permits to site costs, materials, fixtures, and fittings.
- Fees and taxes: Include bank fees, subdivision costs, Open Space Contributions, and legal fees.
For a free feasibility assessment with Delcon Design and Construct, a Melbourne townhouse builder who specialises in optimising Melbourne developments for a high ROI.