Townhouses & Terraces: Melbourne's Key to Affordable Urban Density

Melbourne's experts and developers are championing townhouses and terraces as a strategic solution to enhance urban density and housing supply in inner-urban areas. This approach is presented as both an affordable option for residents and a profitable method for developers. It's backed by historical trends of increased semi-detached dwelling approvals in Victoria and recent government reforms streamlining their development.

Proposal for Urban Density

Experts and developers in Melbourne are proposing townhouses and terraces as a key method to increase density in the city's inner-urban areas.

These housing types are highlighted as an affordable solution for residents and a profitable strategy for developers to expand housing supply.

Historical Context and Growing Popularity

Townhouses and terraces have shown a marked increase in popularity across Victoria. Official figures reveal a consistent rise in approvals for semi-detached dwellings in the state over the past 35 years. Notably, Victoria's approvals for these housing types have outpaced both Queensland and New South Wales during the same period, underscoring their growing prevalence.

Streamlined Development: Government Reforms

Last year, the state government initiated significant reforms to the Townhouse and Low-Rise Code. These changes are specifically designed to simplify and expedite the approval process for new townhouse developments. The reforms introduce "deemed to comply" rules for various construction aspects, such as setbacks, room sizes, and overlooks, directly aiming to streamline the entire development process.

Expert Outlook on Impact

Brendan Coates, economic policy program director at the Grattan Institute, provided commentary on the potential impact of this housing strategy. Coates anticipates that a rise in townhouse approvals will contribute more significantly to density and housing supply in Melbourne's preferred residential areas. This expected impact is viewed as a substantial alternative or complement to the Allan government's current plan, which largely emphasizes high-rise apartment developments in suburban activity centers.