Why Single Storey Dual Occupancy Is the Smartest Move (Right Now)

https://www.youtube.com/watch?v=jjSp-8L7TUQ

The moment most property developers look at a site, they fall into the same trap. They think the smartest move is to chase density, build as big as they can, and go straight to double-storey townhouses.

The problem is that’s what everyone else is doing. Which means you’re just competing with the same product and heading into a race to the bottom.

But what if there was a simpler strategy that was actually more profitable?

I’m talking about single storey dual occupancy homes. In this article, I’ll show you why this approach is underrated. How it cuts townhouse build costs, taps into demand other developers miss, and sets you up for either a safer exit if you sell or stronger rental yields if you hold.

Why You Should Do It

Let’s start with why single storey dual occupancies can be such a smart move.

First, let’s look at the numbers. Building double-storey townhouses is expensive. You have more structure, more engineering, you need to engage more trades, and you need more materials.

If you are developing in an area where the sale prices do not support those higher costs. You can overcapitalise or overspend pretty quickly.

Single-storey townhouses are different. By default, without the second level the builds are far less complicated. Given they are significantly smaller, meaning lower costs and faster build times. And if you have done some homework on your area, which we will talk about in more detail later in the article. You will be delivering a product that property buyers and renters will compete for. It is a smarter way to activate a site without burning cash.

The Reason Buyers and Renters will Compete

The reason buyers and renters will compete is because of the lack of supply. As we touched on in the beginning, almost all developers go straight to the double-storey monster townhouses.

Buyers and renters genuinely want single-storey homes. Not everyone wants to live in a ginormous house for many reasons. There are downsizers who don’t want stairs, young families who still want a large backyard, and investors who want something easy to rent. You are appealing to almost the whole market.

And look, if this kind of play makes sense to you, we’ve got a free property developers network the Little Fish Network where thousands of us share what’s working in real projects. If you are serious about townhouse development you should check it out.

The supply side is the real story here, because in established suburbs the market is flooded with double-storey townhouses. With all the developers chasing density and building monster townhouses, you end up with an oversupply of the same product. Oversupply, like in any market, kills profits.

It is a fact that single-storey dual occupancy projects are rare. That scarcity creates value, which is exactly why agents light up when I mention them.

So, when you put it together, lower build costs, a wider buyer pool, and a product in short supply, that is the sweet spot and why this dual occupancy property strategy is so powerful.

Why Developers Miss It

So, if the case is that strong, why don’t more developers build single-storey townhouses?

I wish I knew the answer, that’s why I am sharing this article. It is an opportunity that exists and one you need to be aware of. For whatever reason, developers default to the density play. They try to squeeze as much as they can onto a block, which means double-storey townhouses.

The assumption, I imagine, and I would argue the mistake, is they think the bigger you build the more money you make or the more you can rent them out for. While in some cases this may be true, like I have demonstrated it is definitely not true in all cases.

On paper it looks good, because you can show more living areas, bathrooms, office space. Whatever the case may be, but again, it is a big assumption to think that is what every buyer wants.

I have been doing this a long time, and I can tell you categorically this is not accurate. Before I started as a developer, I was a real estate agent. It was true then, and it is true now after 10+ years and hundreds of projects.

You can see it for yourself if you drive around the streets or if you jump on the property portals like realestate.com or Domain. Like I touched on earlier, when everyone builds the same double-storey monster townhouses, you end up with oversupply and oversupply kills profits.

Long-Term Benefits of Single-Storey Townhouses

Whether you plan to rent it out or sell your townhouses, the advantages compound over time. Shorter builds usually mean you finish sooner, which can reduce interest and other holding costs if you are funding the project with a loan. Less time on site also lowers risk from cost escalations and delays.

That imbalance helps you in every market. They tend to lease faster and sit vacant less, which keeps your cash flow steady. On resale, the buyer pool is often less price sensitive because there are not many comparable single-storey options in established suburbs.

Maintenance is simpler too. No stairs, less structure, and fewer complex junctions generally mean fewer defects from the build and lower ongoing costs, which matters if you hold.

That lack of foresight from other developers is your opportunity. And it’s why I call single-storey dual occupancy projects the smartest move right now and moving forward.

So, if you are holding land, if you are sitting on an older block, or if you are an investor wanting to activate your portfolio without overextending. This is a strategy you should absolutely consider.

And if you want to see how other like-minded developers are putting strategies like this into play. You’ll find that and tonnes more inside the Little Fish Network, our free property developer community with thousands already inside.

And if you’re at the stage where you’d rather get expert help, you can book a call with me directly and we’ll talk through your site, your goals, and what’s possible, we are expert property development consultants with decades of experience.

Filled under: All Dual Occupancy