Continued Greenfield Townhomes

While the macroeconomic landscape may have initially solidified the position of townhomes as a compelling option for homeownership for those navigating affordability constraints, they are certainly not projected to be a short-lived trend. In fact, townhomes will unlock the opportunity for homeownership for many generations.

The appealing proposition offered by townhomes will continue to rise even as interest rates soften and borrowing capacities begin to increase. Well-functioning markets must offer a variety of housing options that bridge the gap between traditional detached houses and high-density units. This caters to all income levels and best aligns housing amenity with purchasing capacity, limiting unnecessary trade-offs due to a lack of availability of better suited housing options.

As traditional detached house prices rise, it is well anticipated that the more affordable option will further solidify its place as the ideal bridge to the gap.

In markets where this has not been the case – for instance, Sydney – higher density housing has emerged as the primary alternative to detached houses. Conversely – for instance, in Melbourne – where we note the presence of more medium density products, buyers are offered a more viable compromise that meets their lifestyle needs while easing their affordability concerns.

As townhomes gain more momentum in the market, spurred by shifting buyer needs, they will continue to play a critical role in supporting housing needs without unnecessarily sacrificing lifestyle preferences. This extends from metropolitan to greenfield areas; each requiring varied and balanced housing product mix for their respective communities.

Luke Kelly National Managing Director Project Marketing