How much does it cost to build a dual occupancy in Melbourne?

As a build-only figure, budget roughly $400,000-$650,000 per dwelling for a standard dual-occ, more for premium specification. On top sit land, demolition, planning, subdivision and service upgrades, which on an infill site can add significantly. Always run a full feasibility before committing.

What's the difference between dual occupancy and townhouses?

'Dual occupancy' means two dwellings on one lot (side-by-side or front-and-back); 'townhouses' usually describes two or more attached dwellings, often three or more. Both are multi-dwelling developments assessed under ResCode and typically subdivided into separate titles.

How do I check a builder is registered and insured in Victoria?

Every residential builder in Victoria must be registered with the Victorian Building Authority (VBA) in the right class (e.g. Domestic Builder - Unlimited). You can verify a registration by name or number on the VBA's public 'Find a practitioner' register. On any domestic building contract over $16,000, the builder must also take out Domestic Building Insurance (DBI), issued through the VMIA, which covers you for incomplete or defective work if the builder dies, disappears or becomes insolvent (6 years structural, 2 years non-structural from completion). Ask for both the VBA registration number and the project-specific DBI certificate of currency before you sign.

Melbourne Builder Guide

Townhouse Builders Melbourne

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Townhouse building in Melbourne ranges from a single replacement dwelling to dual-occupancy and multi-unit developments on established blocks. It's a popular path for downsizers, investors and small developers because it uses valuable middle-suburb land efficiently - but planning, ResCode and subdivision make builder experience essential.

What's involved in building townhouses?

A townhouse project usually means demolishing an existing home and building two or more attached or detached dwellings, then subdividing the title. In Victoria this almost always needs a planning permit assessed against ResCode, plus careful design for setbacks, private open space, car parking and overlooking. A builder experienced in multi-unit work is key.

Benefits

Efficient use of valuable middle-suburb land
Strong demand from downsizers and investors
Can deliver multiple dwellings / sale lots
Keep one, sell or rent the others
Lower maintenance than a large detached home
Good return potential in established suburbs

Considerations

Planning permit and ResCode assessment required
Subdivision and new titles add time and cost
Site, demolition and service upgrades can be significant
Overlays (heritage, character) can constrain design
Development finance is more complex
Neighbour objections can extend the planning phase

Townhouse costs in Melbourne (2026)

Single townhouse (~160m²)$380,000 - $600,000

Dual occupancy (per dwelling)$400,000 - $650,000

Premium / 3+ unit (per dwelling)$550,000 - $900,000+

Build-only, per dwelling (ex land, GST and site costs). Demolition, planning, subdivision and service upgrades are additional and can be substantial on infill sites.

The Process

Feasibility

Assess yield, planning and finance for the site

Design & planning

ResCode-compliant design and planning permit

Documentation

Working drawings, engineering and contract

Demolition & permits

Demolition and building permits

Construction

Build the dwellings in staged trades

Subdivision & handover

Subdivide titles, complete and hand over

What to Look For in a Builder

A portfolio of completed multi-unit projects

Experience with planning permits and ResCode

Coordination with town planners and surveyors

Understanding of subdivision and titles

Transparent fixed-price contract per dwelling

Experience managing infill site constraints

What’s working and what's falling short in Home Building?

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What’s working and what's falling short in Home Building?

Industry advisor Ryan Gazzard joins us to cut through the noise: what’s genuinely working in home building right now - and where projects keep falling short. We unpack clear briefs and realistic budgets, expectation management, and the systems great builders use. Walk away with practical steps to de-risk your build before you sign.

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Common Questions

Almost always, yes. Multi-dwelling and dual-occupancy developments are assessed against ResCode by your council, covering setbacks, private open space, car parking, overlooking and neighbourhood character. Overlays add further requirements. Factor the planning timeline - often several months - into your program.