How to find off-the-plan townhouses in Melbourne

Buying an off-the-plan townhouse is an attractive option for those looking to take their first step onto the property ladder or add to a growing portfolio. Think of it like this: you get first pick, you lock in the price, and by the time it’s ready, you’re stepping into something brand-new, modern, and tailored to you.

These homes are often stylish, cleverly designed, and kinder on your budget than many established houses in the same suburb. Whether you’re a first-home buyer, seasoned investor, or just looking for more space in a postcode you love, knowing where (and how) to find these properties could be your ticket into the market. 

But before you dive into your search, it’s worth understanding exactly what “off-the-plan” means, how it works, and why it might be the right move for you.

What is an off-the-plan townhouse? 

Understanding exactly what buying an off-the-plan property means is the first step in making an informed decision when it comes to purchasing real estate. Whether you’re a first-home buyer, upsizer, downsizer, rightsizer, or are looking to build your portfolio through a sound investment property, there are a few things you need to know.

Put simply, buying “off-the-plan” means you’re purchasing your home before the builder’s even broken ground. You won’t be walking through the finished property just yet, but you will have access to detailed floorplans, high-quality renders, and all the key details from fixtures and fittings to completion dates, all spelled out in your contract of sale.

When you purchase a property off-the-plan, you do so with a guarantee of the quality and style of the property, a timeframe for construction, a completion date, size, fittings and fixtures – all of which are included in your contract of sale.

A townhouse is a self-contained property that exists within a group of three or more properties. When you own a townhouse, you own that particular property, but ownership of the land is shared with other owners within the complex. Townhouses can be attached or freestanding, with many new, off-the-plan ones boasting the size, layout, and outdoor space you would typically expect from a traditional detached house.

What are the benefits of buying an off-the-plan townhouse?

Affordability and investment potential 

Acquiring the funds to purchase an established home is becoming increasingly difficult for young Australians. However, because the median price of off-the-plan townhouses is usually lower than the price of pre-existing houses, buying off-the-plan offers significant financial benefits.

For example, as of 2022, reports show that the price gap between traditional detached houses and townhomes has widened to a record high of nearly 38%. This means townhomes are now the more viable pathway to homeownership for many first-home buyers looking to get a foothold in the property market.

Off-the-plan concessions also allow you to save money when buying your home by minimising stamp duty costs. You pay duty on the dutiable value of your property. But when buying off-the-plan, the dutiable value amounts to the contract price minus the construction or refurbishment costs incurred on or after the contract date. This consequently reduces the amount of stamp duty you pay.

With off-the-plan stamp duty concessions extended until October 2026, buying an off-the-plan townhouse has become easier.

Additionally, off-the-plan properties require a lower deposit amount, with some developers offering financial incentives (including developers’ grants and furniture packages) to further sweeten the deal.

Buying an off-the-plan townhouse ultimately has the potential to be a fantastic investment, as you will spend less than you would on a traditional house with capital gain over time. Townhouses have significant investment potential whilst also being an excellent option for first-home buyers looking to buy their first property.

Location, location, location 

Buying off-the-plan allows you to purchase a home in some of Melbourne’s most sought-after suburbs at a more affordable price than traditional houses.

Whether you’re an owner-occupier or an investor, the value of location is extremely beneficial for buyers.

The value of buying off-the-plan is both short-term and long-term, and allows you to make a savvy investment in your future. Many off-the-plan properties are strategically located in the most desirable suburb to ensure capital growth. In addition to providing affordable home-buying opportunities, buying a townhouse off-the-plan is evidently an excellent way to invest in property at an achievable price.

Considered design 

Off-the-plan townhomes tend to be architecturally designed, with renowned design firms like Cera Stribley, Bates Smart, Architectus, and Rothelowman often ensuring design is thoughtful and considered.

Buying a townhouse off-the-plan also often means that you can customise floorplans to suit your personal style as construction hasn’t begun yet. Rather than confining you to a specific aesthetic, purchasing a townhome off-the-plan will provide you with great scope for creativity.

New developments are generally designed following the most contemporary design principles as well. By demonstrating a timeless, future-proof, and considered use of space, many expertly designed new developments act as an immaculate canvas to inject your own personal style into your new home.

Sustainability

Across most off-the-plan townhomes, developers and architects are increasingly emphasising sustainability in their choice of design and materials.

Implementing a design that enables cross-flow ventilation reduces reliance on air conditioning systems, whilst solar panels allow for renewable energy. These are just some of the ways that developers integrate sustainability into the design of townhomes. This gives you a chance to easily integrate sustainable practices into your daily life simply by way of the home you live in.

Peace of mind

Buying off-the-plan can offer increased peace of mind for buyers, as many off-the-plan townhomes offer a range of buyer guarantees that reduce risk.

The off-the-plan duty concession is one of the major benefits for buying off-the-plan, as are the changes in the sunset clause that have been implemented in recent years. The sunset clause allows purchasers to legally terminate a contract if the developer misses key deadlines or runs excessively behind schedule. Conversely, a developer cannot end the contract via the sunset clause unless agreed to by the purchaser or approved by the Supreme Court.

Off-the-plan townhomes also offer a range of buyer guarantees, including extended building guarantees, extended builder’s defects liability period, and the use of only Fire Rescue Victoria (FRV) approved facade materials.

How to find an off-the-plan townhouse in Melbourne 

Ready to start your search? You can find an off-the-plan townhouse in Melbourne on the Apartments & Developments website.

To search specifically for townhouses, click on the blue ‘Filters’ button in the search bar, and click on ‘Townhouses.’

Your dream home might still be lines on a blueprint today. But, in a year or two, it could be the place where you’re making your morning coffee, hosting loved ones in your outdoor courtyard, and feeling very smug about locking in that price early.

To start looking for off-the-plan townhouses in Melbourne, click here.

Header image of Denmark Gardens.