Investors · Owner-Occupiers · First Home Buyers · Downsizers
Townhouses Australia Wide
Anyone can buy a property. We help identify property worthy of your investment dollars.
New and off-the-plan townhouses and townhomes: more space than an apartment, a better location than most house and land, typically a 10% deposit with the balance on completion, and stamp duty savings in several states.
Image: Donaldtong, public domain, via Wikimedia Commons (converted to black and white)
Why now
Why Townhouses Are Rising
Borrowing capacity has tightened and detached houses in good suburbs have moved out of reach for many buyers. Townhouses fill that gap.
Borrowing capacity
With the cash rate at 4.60% after four rises in 2026, and APRA limiting high debt-to-income loans, buyers are trading down from detached houses without giving up location.
Affordability
Hotspotting’s Terry Ryder points investors to the unit and townhouse segment, where demand and price growth have matched or exceeded houses in several cities.
Infill near jobs
New townhouses are often built on infill sites in established suburbs, close to transport, schools and jobs, where new houses are rarely available.
The middle ground
Apartment, Townhouse or House and Land?
A townhouse sits between an apartment and a house: more space and land than an apartment, in better-located suburbs than most house and land packages.
| Apartment | Townhouse | House & land | |
|---|---|---|---|
| Entry price | Lowest | Middle | Middle to higher |
| Land share | Small share of the site | Own lot or a meaningful share | Full block |
| Location | Inner and middle ring, transport hubs | Established and middle-ring suburbs | Growth corridors and regional centres |
| Body corporate | Usually higher (lifts, common areas) | Low or none | None |
| Who rents it | Singles, couples, students, professionals | Couples, small families, downsizers | Families |
| Read more | Apartments | This page | House & land |
Who it suits
Who Buys Townhouses
Townhouses appeal to a broad range of buyers and tenants. Strategy comes first.
For
Investors
A broad tenant pool of couples and small families, lower body corporate costs than apartments, and higher depreciation on a new build.
For
First home buyers
A house-like home with a garage and courtyard at a price closer to an apartment, often with grants and stamp duty relief on new homes.
For
Downsizers & owner-occupiers
Low-maintenance living without giving up space, a garage or your own front door, often in the suburb you already know.
Your choice
Choose the Townhouse That Fits
Townhouses offer more choice than most buyers expect.
Bedrooms
Two bedrooms for the lowest entry price, three for the broadest market, four for growing families.
Bathrooms
Two bathrooms plus a powder room is the sweet spot for families and sharers.
Single or double garage
A lock-up garage is a major drawcard. Double garages, side by side or tandem, add appeal and value.
Single or double storey
Most townhouses are double storey. Single-level designs suit downsizers and command a premium.
Outdoor space
Private courtyards, balconies or rooftop terraces give townhouses their house-like feel.
Freehold or strata
Your own lot with no fees, or a share of common property with an owners corporation.
10% deposit, balance on completion
Secure Today’s Price, Settle on Completion
Buying new or off the plan typically means a 10% deposit when you sign and the balance when your townhouse is finished.
Sign & pay the deposit
Typically a 10% deposit, sometimes 5%, held in trust. Some buyers use a deposit bond instead of cash.
Construction
Usually 12 to 24 months for a townhouse development. No loan repayments on the balance while it’s being built, giving you time to save and grow your income.
Settle on completion
The balance is paid at completion, when your finance is approved against the finished property.
Finance is assessed at settlement, not when you sign. With the cash rate at 4.60% and APRA limiting high debt-to-income lending since 1 February 2026, get pre-approval advice early and keep a buffer. Read: APRA lending changes 2026 and your borrowing capacity
Stamp duty
Stamp Duty Savings on New & Off-the-Plan Townhouses
Depending on where you buy, the title type and who you are, buying new or off the plan can reduce stamp duty or remove it altogether.
| State | Off-the-plan & new build stamp duty savings | Who |
|---|---|---|
| Victoria | Temporary off-the-plan concession for apartments, units and townhouses in strata developments: duty is reduced by the construction yet to be completed. Open to investors as well as owner-occupiers, no value cap, for contracts signed from 21 October 2024 and before 21 April 2027. | All buyers |
| Western Australia | Off-the-plan concession for apartments, townhouses, units and villas in strata schemes: 100% up to $800,000 for pre-construction contracts, phasing to 50% at $900,000 (capped at $50,000). Extended to 30 June 2028. | All buyers |
| Queensland | First home buyers pay no transfer duty on a new home or off-the-plan purchase, with no value cap. | First home buyers |
| South Australia | First home buyers pay no stamp duty on new homes and off-the-plan apartments. Eligible downsizers aged 60+ also receive relief on new homes. | First home buyers & downsizers |
| New South Wales | Owner-occupiers can defer duty on off-the-plan purchases for up to 15 months. First home buyers pay no duty up to $800,000. | Owner-occupiers & first home buyers |
| ACT | Owner-occupiers buying off-the-plan or new unit-titled homes pay no duty, with no value cap from 1 July 2026. | Owner-occupiers |
Victoria’s and Western Australia’s concessions apply to townhouses in strata developments; freehold townhouses may not qualify. Victorian buyers can also read our guide to stamp duty in Victoria. Tasmania and the Northern Territory currently have no dedicated off-the-plan concession. Rules, eligibility and dates change: always confirm with your conveyancer or state revenue office before you sign.
Title matters
Freehold or Strata Townhouse?
Townhouses come on two main kinds of title, and it affects your costs, your control and even your stamp duty.
Freehold (Torrens) title. You own your lot outright, with no owners corporation or body corporate fees. You’re responsible for your own building and insurance.
Strata or community title. You own your townhouse plus a share of common property such as driveways and gardens, with an owners corporation managing shared costs. Victoria’s and WA’s off-the-plan concessions generally apply to strata-titled developments.
Why new
The Advantages of Buying New
A new townhouse comes with advantages an older one can’t match.
Higher depreciation
Capital works deductions of 2.5% a year for 40 years plus full plant and equipment deductions, which are restricted on second-hand residential property bought since 9 May 2017.
Negative gearing retained
From 1 July 2027, losses on established property bought after 12 May 2026 are quarantined. New builds keep access to negative gearing.
High energy rating
New townhouses must meet the 7-star NatHERS standard under the National Construction Code 2022, plus a whole-of-home energy budget.
Builder warranties
Statutory warranties cover defective work for years after completion: up to 10 years in Victoria and 6 years for major defects in NSW.
Lower maintenance
New roofs, plumbing, appliances and finishes mean fewer repair bills, and smaller gardens mean less upkeep.
Tenant appeal
Modern townhouses with a garage and courtyard are in strong demand from couples and families. In our experience they lease faster and for more than older units nearby.
The ten-year rule
A home built today will be ten years old in a decade. The one next door, built ten years ago, will then be twenty.
That age gap never closes. It shows up in maintenance bills, energy costs, depreciation and the rent a tenant is willing to pay.
What to watch
Not Every Townhouse Is Worth Buying
These are the questions we ask before recommending any townhouse.
- Land share. Land drives long-term growth. Know exactly what you own.
- Too much of the same. Large developments of near-identical townhouses compete with each other for tenants and buyers.
- Owners corporation. Check fees, rules and what’s shared, especially driveways and waste.
- Shared walls and privacy. Sound insulation, overlooking and layout make a real difference to livability.
- Parking. Tandem garages and limited visitor parking can deter some buyers.
- Developer and builder. Check licensing, track record, financial position and warranty insurance.
- Valuation at settlement. Banks value the finished home. Overpriced stock can leave a shortfall.
- Your finance at completion. Borrowing rules can change between signing and settlement. Keep a buffer.
Where we can help
Townhouses Across Australia
We research selected markets across the country. Start with the state or region that fits your strategy.
Read more
Questions
Townhouse FAQs
What is the difference between a townhouse and a townhome?
Usually nothing. Both describe a multi-level or attached home in a small group of dwellings, often with its own entry, garage and courtyard. Townhome is simply the more common term in some markets and marketing.
How much deposit do I need for an off-the-plan townhouse?
Typically 10% of the purchase price when you sign, with the balance paid at settlement once the townhouse is complete. Some developers accept 5%, and deposit bonds are another option.
Are townhouses a good investment?
They can be. Townhouses combine a lower entry price than houses with more land and lower fees than apartments, and appeal to a broad range of tenants. Location, land share and the number of similar townhouses nearby matter most.
Do townhouses have body corporate fees?
Freehold townhouses usually have none. Strata or community-titled townhouses have an owners corporation, but fees are generally much lower than apartments because there are no lifts or large common areas.
Do I get stamp duty savings on a new townhouse?
It depends on the state and title. Victoria and Western Australia offer off-the-plan concessions for strata townhouses that investors can access, while other states mainly help first home buyers or owner-occupiers.
How long does it take to build a townhouse development?
Typically 12 to 24 months from the start of construction, depending on the size of the project, approvals and the builder.
Make an enquiry
Find Your Townhouse
Tell us where you’d like to live or invest, your budget and what you’re looking for. We’ll come back to you with options worth considering.
- No obligation
- Investors, owner-occupiers and first home buyers
- New and off-the-plan, selected developments
- Selected locations Australia wide
Townhouse Enquiry
Takes about a minute.
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Anyone can buy a property
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General information only. properT network does not provide personal financial, legal, tax or lending advice. Stamp duty, grants, lending and tax rules vary by state and change over time. Property investment carries risk, including the risk of loss. Seek independent professional advice before making any decision.
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