How Much Land Do You Need to Build Townhouses in Melbourne?

Townhouse development in Melbourne requires a strategic understanding of land dimensions, planning zones, and council regulations. If you’re wondering what the minimum land size for townhouses is — you’re not alone. It’s one of the most asked questions by property owners, investors, and developers.

In this guide, Gidaya Group breaks down the land size requirements and planning considerations for townhouse developments across Melbourne suburbs.

1. Is There a Legal Minimum Lot Size?

There is no state-wide mandated minimum lot size for townhouse construction in Victoria. However, your local council’s planning scheme — and zone overlays — play a major role.

Generally speaking:

• 300–400 sqm can support 2 townhouses in many residential zones

• 600+ sqm is typically required for 3–4 townhouses

Note: These figures are indicative only and subject to zoning, overlays, site slope, and existing dwellings.

2. Zoning & Density Controls

The zoning of your property determines the potential density:

• General Residential Zone (GRZ): Most common for townhouse builds; allows multi-dwelling developments, usually 2–3 homes

• Neighbourhood Residential Zone (NRZ): Typically restricts to 2 dwellings

• Residential Growth Zone (RGZ): Allows greater density — often 3+ units or apartments

Tip: Gidaya Group offers zoning assessments to confirm your site’s development potential.

3. Lot Width Requirements

Lot width affects layout, access, and compliance:

• Minimum 10–12m for side-by-side townhouses

• Minimum 15m+ preferred for 3+ unit sites with shared driveways

Accessways must be at least 3m wide, with a 5.5m minimum crossover for shared driveways.

Gidaya Group’s designers use site modelling tools to validate site layout before drawings commence.

4. Site Shape & Slope

Oddly shaped or steeply sloped sites may reduce yield:

• Irregular sites may cause design inefficiencies or reduced open space

• Slopes above 6 degrees often require retaining walls or split-level designs

Gidaya Group assesses site constraints during feasibility to ensure realistic planning.

5. Council Setback Rules

Council setback requirements reduce the usable area of your site:

• Front setback: Typically matches adjoining properties

• Rear setback: 1m per 1m of height above 3.6m

• Side setbacks: Increase with height under ResCode (Clause 55)

Understanding setbacks early avoids costly redesigns later.

6. Car Parking Requirements

ResCode mandates:

• 1 car space per 1–2 bedroom dwelling

• 2 spaces per 3+ bedroom dwelling (1 may be uncovered)

These car space requirements affect how many units your land can support. Narrow sites may limit yield.

7. Common Block Sizes for Melbourne Townhouses

Note: Gidaya Group always confirms overlays before development feasibility is finalised.

Final Word

There’s no one-size-fits-all answer to how much land you need to build townhouses in Melbourne. Factors like zoning, overlays, lot shape, and parking rules all affect what’s possible.

Gidaya Group’s in-house design and planning teams specialise in unlocking value from residential sites — no matter the size or shape. We’ll help you determine what you can build, where, and how to maximise yield while staying compliant.

Considering a townhouse development in Melbourne? Get in touch with Gidaya Group for a site-specific development assessment.