The humble townhouse experienced a resurgence in popularity during the latter half of 2016. It quickly became the dwelling of choice for off-the-plan buyers disillusioned with the oversupplied apartment market, as well as developers looking to mitigate risk.
According to RPM Real Estate, a research think tank and residential marketing agent, demand for medium-density dwellings, including townhouses, has surged over the past four years, culminating in a near record of 33,183 new semi-detached or terrace house approvals nationwide during the 12 months to October 2016.
This represents growth of nearly 7% for townhome project approvals during the previous corresponding 12-month period, and a substantial 92% increase on the previous low of 17,287 new semi-detached or terrace house approvals in the 12 months to July 2012.
“The market has changed,” said Leonard Teplin, director of Marshall White Projects, a Melbourne-based project marketer of residential developments.
Townhomes are back in vogue due to their affordability and accessibility. Consequentially, governing bodies, developers, and industry players are actively developing townhomes over apartments to fill the growing demand.
“As supply outpaces demand — and the reality of last year’s foreign investment tax, planning legislation and under valuations set in — developers will increasingly withdraw from the multi-residential market and refocus their attention on an owner-occupier product,” Teplin said. “Whilst the revenue from townhouses is less, the cost and time associated with developing them is also less, meaning financing is easier to come by.”
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