What Is A Multi-Unit Development?

What is a multi-unit development project?

A multi-unit development is a property development project where more than one dwelling is built on a single lot. That is, more than one house, unit or townhouse. Multi-unit developments are successful and sought after due to population growth, and well researched, strategically planned projects are highly profitable investment projects.

Multi-unit developments are highly subject to local council authorities and Residential Building Codes, making this type of property investment a potentially complex endeavor. Investors who engage a specialist multi-unit design and construct team will benefit from expert property development knowledge and experience to streamline the process and optimize their return on investment.

The term multi-unit development refers to a few different types of projects, as detailed below.

Subdivision

This is when the land holding an existing house is split into two, and a new house is built behind the existing house. It can also be when a house on a parcel of land is removed to make way for two or more new dwellings with the land subsequently being subdivided to create a separate title for each of the new dwellings. The owners/developers are then able to live in, rent out or sell the houses.

Units

Units are typically small detached single story houses built on an allotment sharing a common driveway. As they are built on a single level they are quick & cost effective to construct. They can also broaden the rent or sale market as stairs do not become a limiting factor to potential clients.

Duplex

A duplex is one building with two homes that share a common central wall. These 2 homes typically have the same floor plan but are a mirror image of each other.

Triplex

A triplex is three adjoining homes built on a street frontage or around one shared common driveway. These can be single or double stories, depending on council guidelines.

Townhouses

Typically townhouses are multiple stories with small footprints so they are ideal for smaller blocks. As they comprise more that one level it provides the opportunity to increase the building area that you can construct on a given piece of land to maximise its development potential.

Apartment buildings

These are multiple units and multiple stories within one building. Apartment building may also have various shared facilities for residents to access.

Securing a planning permit to build
A planning permit from the local council is always needed to build a multi-unit development. This permit will often determine for you which of the above options (simple subdivision, duplex, triplex, townhouse or apartments) are available to be built.

There is no specific formula to determine the number of dwellings that can be built per overall lot size. Each block of land has its own unique set of factors which will determine the outcome of how many dwellings the lot can accommodate.

Several factors that are taken into consideration are:

  • site orientation and shadowing on neighbouring properties
  • space for cars
  • existing windows on the bordering land
  • slope of the land

To avoid delays in the approval process, we recommend speaking with an experienced design and construct team in the early planning stages. Working with a knowledgeable builder early in the process will also help determine which option is best for you and ensure an optimal design for your investment goals.

Your design and construct team should also assist you with council planning approval, and can prepare documentation for you to submit as a part of your pre-application meeting, or your application. This simple process of being assisted by your builder will save you plenty of money and time down the road.

Getting Started
Building a multi-unit development can be a complex project. But a little research, working with an experienced design and construct team, and following the proper guidelines, will set you up to get the most out of your first multi-unit development project.

What type of development are you interested in? Are you just a few steps away from building your own lucrative multi-unit development? Give delcon a call today on 1800 335 266 for a free, no obligation discussion.

For more information, and a Step By Step Guide To Multi-Unit Development, subscribe to our newsletter on our website.