Can You Build Townhouses on a Corner Block in Melbourne?

Short answer: yes, and it might be one of the most strategic decisions you can make in Melbourne’s current housing landscape.

Corner blocks are considered premium development sites by town planners, architects, and investors — and for good reason. At Gidaya Group, we’ve advised and delivered numerous projects on corner allotments across Melbourne. Here’s everything you need to know before you move forward in 2025.

Why Corner Blocks Are Ideal for Townhouse Developments

1. Two Street Frontages:

   • Adds flexibility for access, driveways, and individual entries.

   • Improves design outcomes with light and ventilation from multiple angles.

2. Improved Resale Value:

   • Buyers place a premium on corner-lot homes for privacy and street presence.

   • Investors gain stronger curb appeal across multiple dwellings.

3. Fewer Shared Walls:

   • Reduces construction complexity and improves fire separation compliance.

   • More natural light for each unit.

4. Better Planning Outcomes:

   • Council planners are more likely to support well-designed corner block proposals.

   • Easier to comply with garden area, setbacks, and open space rules under ResCode.

Key Council Considerations in Melbourne

Before you jump in, it’s critical to understand how local councils assess townhouse proposals on corner blocks:

• Zoning Requirements: General Residential Zones (GRZ) allow townhouse builds, but overlays may add complexity.

• Setbacks & Frontage: You'll likely need larger setbacks from both street frontages.

• Driveway Placement: Councils prefer minimising crossovers. On corner sites, this is easier to manage.

• Neighbourhood Character: Your design must respect the scale, form and layout of surrounding dwellings.

• Private Open Space: Dual frontage makes it easier to allocate compliant courtyard space.

Tip: Gidaya Group helps clients complete pre-application design reviews and liaises directly with councils across Melbourne.

Common Design Strategies for Corner Sites

Dual Street-Facing Townhouses

• Maximises site efficiency

• Improves visual interest and curb appeal

One Front, One Side Access Layouts

• Reduces traffic concentration on one street

• Enhances pedestrian access and privacy

Stacked or Split-Level Units

• Ideal for sloping corner sites

• Increases yield while staying compliant with height limits

Risks and Challenges

Corner blocks have great potential, but they’re not without complexities:

• Land cost premiums: These sites typically command higher acquisition prices.

• Visibility = scrutiny: Neighbours and councils may raise design objections.

• More fencing and façade detailing: Budgets must factor in two public-facing elevations.

Gidaya Group always performs full feasibility studies before site purchase to assess these risks.

Final Thoughts: Is It Worth It?

For developers and owner-builders alike, corner blocks in Melbourne are golden opportunities to design standout townhouses. With the right planning support and architecture team, you can create high-performing, street-smart investments.

Gidaya Group has specialised expertise in corner site townhouse design and subdivision. We help clients secure permits, manage overlays, and optimise layouts for maximum resale and rental value.

If you’ve found a corner site or need help assessing one, contact Gidaya Group for a tailored development strategy.