Melbourne builder Nostra launches single-storey townhomes as demand grows

Melbourne-based builder Nostra Homes has introduced five new single-storey townhome designs, the Torcello, Tino, Nico, Circello and Pietro, for compact lots in medium-density developments. 

Analysis of Australian Bureau of Statistics (ABS) dwelling approval data by Forest & Wood Products Australia, found approvals for single-storey townhouses increased 28% between 2024 and 2025, from approximately 7,400 to 9,500 dwellings.

Offering two or three bedrooms, two bathrooms and one or two-car garages, the designs cater to first home buyers, young families and downsizers.

Nostra Homes general manager of strategic partnerships and acquisitions, Steph Soto said developers were increasingly looking for a broader mix of housing at different price points.

“Developers have been focused on helping first home buyers into the market,” Steph said.

“To support this, we’re bringing a wider range of price points to market by making the most of smaller lots and introducing single-storey terrace and townhome product.

“These homes offer quality accommodation on a smaller footprint, with a more accessible entry price and less maintenance. 

"They also appeal to downsizers and young families, giving developers confidence in the depth of demand.”

Stockland national wholesale manager James Moussa, said greater housing diversity was important in giving buyers more choice within new communities.

“Housing diversity plays an important role in helping more Australians find a home that suits their lifestyle and budget," James said.

"Thoughtfully designed single-storey townhomes on smaller lots can provide a more attainable entry point for first home buyers, without compromising the functionality and quality people expect from a new home."

The move comes as single-storey townhomes gain momentum nationally. 

For first home buyers Peter and Sonia, the appeal of a single-storey townhome was about finding a low-maintenance home close to family, without sacrificing space or comfort.

The couple chose their new home for its open-plan living, single-level layout and proximity to their son and four grandchildren, who live just 103 metres away.

“We wanted a larger open living area without stairs, and we didn't want the heat that can come with a second storey,” Peter and Sonia explained.

“Location was a big factor, along with price and having a low-maintenance garden. 

"Our townhome has met all those needs. It's just the two of us, so the layout works perfectly and it's easy to look after.”

For Nostra Homes, the opportunity is not simply to make homes smaller, but to rethink how the traditional single-storey home can work within a medium-density setting.

“Single-storey doesn't have to mean compromising on the quality of the home,” Steph said.

“The opportunity is in designing the footprint differently. 

"Buyers still want a home that feels spacious, functional and considered; we're just finding new ways to deliver that on smaller lots.

"Nostra Homes currently has its Tino single-storey townhomes on the market at Smiths Lane, with the Nico expected to come to market from November."

Nostra Homes works with developers across Victoria to design and deliver medium-density housing including detached homes, terraces and townhomes.

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