Townhouse Designs and Prices in Melbourne (Real Projects + Costs)

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If you’re researching townhouse designs and prices in Melbourne, this article breaks down four real projects showing you exactly what it costs to build, how they were designed, and where you can save or spend smarter.

You’ll see real examples of townhouse build costs, pricing breakdowns, and what drives the average cost to build a townhouse in Melbourne.

Seeing real numbers like this also helps developers identify the hidden costs in property development and avoid budget blowouts that are often missed in early feasibilities, particularly around approvals, site conditions, service connections, and construction allowances.

Whether you’re early in feasibility or pricing out your first dual occupancy, this breakdown will help you estimate the cost to build a townhouse in Melbourne and understand what influences your townhouse prices.

For developers, understanding how to build a house in Australia becomes far clearer when you can see real townhouse projects broken down by design decisions, approvals, construction stages, and actual build costs.

Townhouse Designs and Prices Melbourne: 4 Projects Broken Down

Are you undertaking or thinking about undertaking a townhouse development in Melbourne? … Or anywhere really? Well, stick around because in this article, I am going to share four townhouse designs and prices in Melbourne.

Let’s get into it.

Now, before I lift up the hood on these Melbourne townhouse designs and prices it is important to note that development costs are always going to be fluid.

Meaning that they fluctuate all of the time relative to the greater market conditions. Supply, demand etc.

So, you certainly don’t want to make big decisions based solely on these numbers. These design and price examples are purely to get you heading in the right direction.

One of the key factors influencing both design and cost in a project like this is what constitutes a townhouse from a planning and zoning perspective. Understanding the distinction between townhouses, apartments, and standalone homes is crucial when assessing feasibility, navigating council regulations, and optimising your site for maximum value.

Starting a knockdown rebuild or dual occupancy project? We offer flexible designs and the best value for your budget, book a free call today!

If you’re looking at 3-townhouse builds, or want to explore different dual occupancy designs in Melbourne and dual home designs, this guide will point you in the right direction.

262 Waterdale Road, Ivanhoe: Three-Townhouse Design and Cost Breakdown

262 Waterdale Road is a three-townhouse corner site. Each dwelling ended up with approximately 220 square meters of land and approximately 21 squares of living. The site orientation, is east-west.

This project is a strong example of the cost to build 3 townhouses in Melbourne, especially when medium-spec finishes and a smart corner layout are involved.

The site itself was zoned as GRZ1. In this part of Banyule, it can be difficult to find sites zoned as GRZ1, GRZ2 are definitely more common – so it was a good find that’s for sure.

The front setback off Waterdale Road was the game-changer; with the townhouse built to our north being so close to the road it meant that we could minimise our setback, which essentially was the key to the three townhouses working.

Before we jump into the costs, it is important to point out that this project and all the selected examples are what we would consider a medium specification.

So not cheap or crazy expensive rather somewhere in the middle.

262 Waterdale Road Plans

262 Waterdale Road Costs

Let’s start with the early development costs … as you can see, these included the land surveying, arborist report, drafting and the town planner, totalling 22,400.

Early Dev. Costs

• Land surveyor = 2600
• Arborist = 1800
• Drafting/planning = 14000
• Town planner = 4000
• Total – 22,400

Next are the middle development costs, these include the demolition, tree removal, construction docs such as the engineering, energy etc., the strata subdivision and some other miscellaneous costs such as insurance and council rates etc. totalling 58,000.

Middle dev. Costs

• Demolition = 13000
• Tree removal = 1000
• Construction docs. =16000
• POSD & services = $16,000
• Miscellaneous (insurances, council rates etc.) = 12,000
• Total – 58,000

Construction Costs

Next up are the construction costs which include the fixed price build contract, earthworks, your concrete slab, the building permit and the open space contribution to the council given it was a three-townhouse site all of which came in at a total of 1,186,000.

• Fixed price contract = 1.1mil
• Earthworks = 20000
• Building permit =6000
• Open space contribution – $60,000
• Total – 1,186,000

Next, the marketing costs, so the 3D renders the onsite hoarding and graphics and custom brochure. These totalled 11,500.

Marketing costs

• 3D renders = 5000
• Hoarding = 2500
• Custom brochure = 4000
• Total – 11,500

And finally, the property development project management fee was 92,000.

Total project cost = $1,358,400

329 Inkerman Street, Balaclava: Dual Occupancy Design and Townhouse Pricing Breakdown

This 329 Inkerman Street project is a side-by-side 2 storey attached dual occupancy design with a right of way at the rear. Each dwelling ended up with approximately 215 square meters of land and approximately 20 and 25 squares of living.

One of the dwellings has a double garage at the rear and the other has a single garage with a car stacker for the second car. This is a good example of how duplex designs can be adapted to suit site constraints while still balancing liveability, yield and townhouse pricing in Melbourne.

We were able to achieve a study as well which was a real bonus.

329 Inkerman Street Plans

329 Inkerman Street Costs

Let’s look at the costs, first up the early development costs for this project these include the land surveying, the arborist report, drafting and planning and the town planner. The total, 21,900.

Early Dev. Costs

• Land surveyor = 3600
• Arborist = 900
• Drafting/planning = 13000
• Town planner = 4400
• Total – 21,900

Next were the middle development costs which included the demolition, construction docs, interior design, the plan of subdivision and relevant services and some miscellaneous costs. All together totalling 74,000.

Middle dev. Costs

• Demolition = 17000
• Construction docs. =16000
• Interior design = 5000
• POSD & services = $20,000
• Miscellaneous (insurance, council rates etc.) = 16,000
• Total – 74,000

Next up, the construction costs which include the fixed price contract, earthworks and the building permit, totalled 1,035,000.

Construction Costs

• Fixed price contract = 1mil
• Earthworks = 30000
• Building permit =5000
• Total – 1,035,000

Next, the marketing costs, such as the 3D renders, hoarding and custom brochure totalling 11,000.

Marketing costs

• 3D renders = 5000
• Hoarding = 2000
• Custom brochure = 4000
• Total – 11,000

And lastly, there was the property development management fee of 80,000 with the overall price for this townhouse design coming in at 1,221,900.

Total project cost = $1,221,900

It’s a classic side-by-side design showing how townhouse build cost in Melbourne can vary with garage configurations and site features like rear access.

24 Coling Avenue, Carnegie: Dual Occupancy Townhouse Build and Cost Summary

24 Coling Avenue is another side-by-side dual occupancy build. Each dwelling ended up with approximately 280 square meters of land and 26 square meters of living. The site orientation, east-west.

The site backs onto a reserve so it was designed so that both the living and master look out onto it, which is pretty cool.

The open rear reserve added lifestyle value, but didn’t inflate the average cost to build a townhouse in Melbourne, keeping this design efficient and well-balanced.

24 Coling Avenue Plans

24 Coling Avenue Costs

Now let’s look at the costs. The early development costs included land surveying, drafting and the town planner coming in at 19,000.

Early Dev. Costs

• Land surveyor = 3000
• Drafting/planning = 12000
• Town planner = 4000
• Total – 19000

Next are the middle development costs, which include the demolition, tree removal, construction documents (again, energy and engineering etc.), the plan of subdivision and relevant services and some miscellaneous costs, all totalling 60,800.

This project also reflects a realistic dual occupancy design cost in Melbourne, offering a transparent price breakdown across early, middle, and construction phases.

Check out this side-by-side development case study for further reference.

Middle dev. Costs

• Demolition = 15000
• Tree removal = 800
• Construction docs. =15000
• POSD & services = $18,000
• Miscellaneous (insurance, council rates etc.) = 13,000
• Total – 60,800

Next, let’s look at the construction costs for this dual occupancy townhouse design. They included the fixed price build contract, earthworks and the building permit totalling 1,000,000.

Construction Costs

• Fixed price contract = $975,000
• Earthworks = 20000
• Building permit =5000
• Open space contribution – N/A
• Total – 1,000,000

Next are the marketing costs, so the 3D renders, hoarding and custom brochure which totalled 11,000

Marketing costs

• 3D renders = 5000
• Hoarding = 2000
• Custom brochure = 4500
• Total – 11,000
• PM fee = 80,000

And finally, the development management fee of 80,000.

So, altogether, the total price for this townhouse design was 1,170,000.

Total project cost = $1,170,000

2 Tobruk Crescent, Williamstown: Two-Townhouse Corner Site Design and Construction Costs

2 Tobruk Crescent is a two-townhouse corner site, each dwelling coming with approximately 260 meters of land and 25 squares of living with a north-south orientation.

It’s a good benchmark for the cost to build 2 townhouses in Melbourne when working with dual addresses and efficient corner access. It also provides a useful case study for how efficient access and corner orientation can affect townhouse construction cost in Melbourne.

Two townhouse corner sites are a great way to try and achieve two independent addresses to minimise the dual occ feel, which is what we were able to do here.

In fact, each townhouse has a different street address, both with whole numbers, which are gold.

2 Tobruk Crescent Plans

2 Tobruk Crescent Costs

Now let’s look at the costs, starting with the early development costs, which include the land surveying, arborist, drafting, and planning, totalling 18,800.

Early Dev. Costs

• Land surveyor = 2800
• Arborist = 3000
• Drafting/planning = 13000
• Total – 18,800

Next are the middle development costs, so the demolition, tree removal, construction docs, the plan of subdivision and services and some miscellaneous, all totalling 65,000.

Middle dev. Costs

• Demolition = 11000
• Tree removal = 2000
• Construction docs. =15000
• POSD & services = $20,000
• Miscellaneous (insurance, council rates etc.) = 17,000
• Total – 65,000

Next, we have the construction costs, which include the fixed price build contract, earthworks and the building permit, all coming to 895,500.

Construction Costs

• Fixed price contract = $875,000
• Earthworks = 15000
• Building permit =5500
• Open space contribution – N/A
• Total – 895,500

Then it’s the marketing costs which includes the 3D renders, hoarding and the custom brochure with a total of 12,400.

Marketing costs

• 3D renders = 5400
• Hoarding = 2000
• Custom brochure = 5000
• Total – 12,400

The property development consultants project management fee for Tobruk Crescent was 82,000

All together bringing the total cost to 1,073,700

Total project cost = $1,073,700

How Much Does It Cost to Build a Townhouse in Melbourne?

The average cost to build a townhouse in Melbourne in 2025 ranges from $400,000 to $700,000 per dwelling, depending on site conditions, design spec, and builder contracts. Based on the four real projects above, total project costs ranged from $1.07M to $1.36M for 2–3 townhouse developments.

If you’re specifically looking at a two-home project, it’s also worth understanding the cost to build a dual occupancy before you run your feasibility. While townhouse and dual occupancy projects share many of the same cost drivers, the site layout, subdivision approach, services, access and design outcome can all change the final number.

If you’re pricing your first build or trying to understand your own cost per square, these examples should give you a reliable benchmark.

This is also where understanding the broader cost to build a house becomes critical, as townhouse construction costs are heavily influenced by the same market pressures, labour shortages, and material increases impacting standalone builds across Melbourne.

Wrapping Up

As mentioned, it is critical that you take these numbers with a grain of salt; the market is fluid and always moving.

These examples should get you heading in the right direction and help you understand the townhouse designs and prices to deliver projects such as these in and around Melbourne suburbia.

You can also check out this townhouse development case study for further information.

It is also important to include contingency within your feasibilities; you don’t want to be operating too close to the line.

Remember Murphy’s law – if something can go wrong, it will.

Things always cost more and take longer than anticipated, which is something you need to be aware of and factor in; it’s also something you will get better at with time in the saddle.

Here is a Dual Occ case study – which will give you even further perspective around time and cost. And this article is all about developer floor plans.

If you’re actively researching Melbourne townhouse developments, these case studies should give you strong footing to price confidently and move forward with clarity.

Once you understand your townhouse build costs, the next question is simple, should you build two, or three townhouses? Each path comes with its own risk profile, finance structure, and potential profit

Final Thoughts

These four examples prove that there’s no one-size-fits-all when it comes to townhouse development costs in Melbourne. Every block is different. Every outcome is shaped by smart design, smart planning, and having the right builder in your corner.

Ready to build? Book a free call with our team and we’ll walk you through real examples like the ones above, explore our townhouse builder services in Melbourne, or break down the townhouse pricing for your specific site.

There’s no pressure just clarity and a smarter way to build.

Filled under: All Case Studies Design