Townhouse And Unit Development
Townhouse Builders Melbourne: Build Multiple Incomes on One Block
100%
Customer Focus
70+
Projects Completed
25+
Years of Experience
100%
Custom Homes
The Tombay Experience
Transforms Builder Disappointment Into Your Dream Home
You’ve seen what volume builders deliver. Cookie-cutter designs. Rushed timelines. Zero flexibility when you want to change something.
At Tombay Constructions, we build the home you actually want, not the home that’s easiest for us. Every room purpose-built. Every detail exactly as you imagined. Because after 25 years, we’ve learned that personalised service isn’t optional. It’s everything.
What You May Not Know
Why Townhouse Developments in Melbourne Fail to Deliver Expected Returns
You’re sitting on a 1,200sqm block in Mount Eliza worth $1.5M+.. Three modern townhouses could sell for $1.2M each after construction. That’s $1.95M in end value. Your builder quoted $1.2M for the build. Simple maths says you’re looking at $600K profit.
Then council rejects your first planning application. Your town planner didn’t account for the neighbourhood character overlay. That’s another $15K in design revisions and $8K in resubmission fees. Three months lost.
Construction starts. Week four, the builder discovers the soil requires class H footings instead of class S. Week twelve, services need relocating because the plans didn’t map existing gas and electrical properly. Add $18K.
By month eight, you’re $300K over budget and your profit margin is closing in on break-even.
According to recent Victorian building data, townhouse approvals increased 26% over previous years as investors recognise the opportunity. But the Australian Bureau of Statistics doesn’t track how many of those developments actually deliver the returns investors expected when they signed contracts.
Volume builders win townhouse projects by quoting construction costs only. They leave out development costs, council contribution fees, and service upgrades. Once you’ve paid $40K in town planning fees and secured your permit, walking away means losing everything already invested. They know you’re committed before discovering the real costs.
Townhouse builders in Melbourne who conduct thorough site assessments before quoting, account for council requirements specific to multi-unit developments, and provide genuinely fixed pricing are protecting your investment from the start.
Testimonials
Don’t just take our word for it
“We wanted a builder that was going to do a fabulous job, but also for it to last”
Rachel & Rob
“We wanted a builder that was going to do a fabulous job, but also for it to last”
Rachel & Rob
Expectations Building With Us
What to Expect from Tombay's Townhouse Development Builds
When you’re investing $1M+ in a multi unit development, you deserve complete transparency about timeline, costs, and what actually gets built. Here’s exactly what working with Tombay delivers.
Realistic Development Timeline
Townhouse developments take 18-24 months from initial consultation to final completion. Council planning permits require 8-12 months when your application accounts for neighbourhood character overlays and waste management requirements upfront. Construction of three townhouses takes 10-14 months depending on design complexity. We don’t promise 12-month completions that become 20 months when reality hits.
Investment-Grade Budget Protection
You’ll receive a comprehensive development quote covering construction costs, all council fees, town planning expenses, service relocation, and soil testing. What we quote for your townhouse project is your total investment. The only variations that occur are upgrades you request, like stone bench tops to marble.
Council Approval Expertise
We manage your entire planning permit process. That includes neighbourhood character assessments for Peninsula councils, waste management plans for multi-unit projects, and subdivision coordination. Our 25+ years navigating Mornington Peninsula council requirements means your application gets approved much faster.
Quality Multi-Unit Construction
Every townhouse meets current building codes with proper acoustic separation, fire ratings, and energy efficiency standards. Our employed carpenters build to investor-grade specifications that attract quality tenants and deliver strong rental returns.
Direct Developer Communication
You work with Lee throughout your townhouse development Melbourne project. No being passed between coordinators. You get weekly progress updates, rental yield projections, and immediate answers when questions arise about your investment.
Experienced Team
Meet Lee & The Team: 25+ Years Building Townhouse Developments Across Mornington Peninsula
I started Tombay after watching too many property investors get burned by builders who treated multi unit developments like they were building single homes. Townhouse construction projects require more specialised expertise: navigating subdivision approvals, managing council waste requirements for multiple dwellings, coordinating staged construction, and designing for rental yield optimisation.
A single custom home usually follows a much simpler approvals path, with one main planning approval, one building permit, and a straightforward set of services. Townhouse development Melbourne projects require planning permits that respond to neighbourhood character overlays, waste management plans for multiple dwellings, subdivision certification, and service infrastructure sized and designed for multiple separate properties. Get any of those wrong and your development can sit idle for months while planning and subdivision issues are resolved.
Every Tombay townhouse development client works with me directly throughout the project. I assess your site for council overlay requirements, coordinate your town planner and designer, manage the subdivision process, and ensure your investment actually delivers the returns you calculated.
Rye
Edithvale
Sorrento
Investment Guide To Townhouse Development
Townhouse Development Cost Melbourne: What You'll Actually Invest
Many three-townhouse developments in inner and middle-ring Melbourne fall in the $2.65M-$3.5M range total, including land, development costs, and construction. Four-townhouse projects often range from around $3.5M to $5M+ depending on location, design complexity, and finish specifications.
Per dwelling, most Melbourne townhouse projects come in around $400,000-$700,000 per townhouse to build, before land and soft development costs.
Typical Investment Breakdown (3 Townhouses):
Land holding costs during the 18-24 month development: typically $45K-$75K in interest, rates, and insurance while the project is being designed and built.
Development costs before construction starts typically sit around $80K-$120K covering town planner fees, soil testing, architectural design, engineering, and council application fees.
Construction costs for three townhouses are usually $1.9M-$2.8M in total, based on build rates of roughly $1,900-$2,900 per square metre depending on specifications.
Subdivision and completion costs: $25K-$45K for surveyor fees, plan of subdivision, titles office registration, and final certification.
Hidden Costs Volume Builders Often Don’t Mention:
Service relocation when existing infrastructure runs through building footprints: $18K-$35K depending on complexity.
Soil upgrades if site requires engineered footings: $25K-$50K that should be identified during proper site assessment.
Council contribution fees: in some Peninsula and Bayside councils you may need to allow $12K-$28K for infrastructure contributions.
Why Our Quotes Include These Upfront:
When I assess your site for townhouse development, I work from proper soil tests, map existing services, review council overlays, and calculate the full development costs. These expenses get included in your quote, not discovered as variations once you’re committed.
Our Process
The steps we take to ensure excellence in every project.
High Return On Investment
Why Townhouse Development Delivers Better Returns Than Single Dwellings
Building multiple townhouses on one block isn’t just about construction. It’s about maximising your land’s investment potential while maintaining flexibility for your financial future.
Multiple Income Streams From One Asset
Three townhouses on your Mount Eliza block means three separate rental incomes instead of one. That’s $1,800-$2,100 weekly combined rent versus $650-$750 for a single home. Over 12 months, you’re collecting $93,600-$109,200 instead of $33,800-$39,000. Tombay designs townhouse layouts that optimise rental appeal: north-facing living areas, practical floor plans, low-maintenance courtyards that attract quality tenants and deliver 4-6% rental yields across Bayside and Peninsula suburbs.
Land Value Maximisation Without Subdivision Costs
Your 1,200sqm block in Mornington worth $850K as one dwelling becomes $2M+ as three completed townhouses. You’ve added $1.15M in value without buying additional land. Tombay manages your entire development to protect that value creation: we coordinate subdivision certification, ensure designs meet neighbourhood character requirements first time, and build to specifications that support premium sale prices or strong rental returns.
Investor Exit Flexibility
Build three townhouses, sell two for $1.36M, live mortgage-free in the third. Or keep all three for $95K annual rental income. Or sell one, refinance against the other two to fund your next development. Tombay structures your multi unit development so you control your exit strategy, not the other way around. We provide rental yield projections during design so you’re making decisions based on actual investment returns, not guesses.
Why Choose Us
Are Hidden Building Costs Robbing Melbourne Homeowners?
Every year, hidden costs and budget overruns plague home building projects across Melbourne, turning dream homes into financial nightmares. Don’t let this happen to you. Here’s how Tombay Constructions ensures your dream home stays within reach:
Areas We Service
Building Dream Homes Across Melbourne’s South-East and Bayside
At Tombay Constructions, we’re proud to serve families and professionals throughout Melbourne’s south-east corridor, Bayside suburbs, and the Mornington Peninsula. Our deep local knowledge means we understand council requirements and neighbourhood nuances unique to each area.
From coastal retreats to family homes in thriving urban communities, we help clients transform their vision into beautifully crafted, custom homes.
Trusted by Families Across These Suburbs
- Mornington
- Mount Eliza
- Dromana
- Parkdale
- Rye
- Aspendale
- Sorrento
- Balnarring
- Portsea
- Chelsea
- Mount Martha
- Flinders
Our Vision
At Tombay Constructions, our vision is to change how people experience building a home. We believe building isn’t about being the cheapest. It’s about being the clearest, with transparent communication and creating spaces that perfectly reflect each client’s style and way of life.
Townhouse Builders Melbourne
Townhouse builders in in Melbourne play a crucial role in turning development opportunities into high-quality, functional homes that suit modern living. It’s not just about building multiple dwellings — it’s about creating smart layouts, maximising land use, and ensuring each residence feels comfortable, private, and liveable.
Townhouse and multi-unit developments require a different level of planning compared to standalone homes. That’s why Tombay Constructions works closely with homeowners, investors, and developers across Melbourne’s south-east and the Mornington Peninsula to deliver well-designed townhouse and unit projects that balance style, practicality, and long-term value.
Smart Design For Modern Living
Successful townhouse developments begin with thoughtful design. Each dwelling should feel like a home in its own right, with natural light, functional storage, and well-proportioned living areas. We work closely with designers and consultants to create floorplans that use space efficiently while still delivering a sense of openness and comfort.
Orientation, access, parking, and private open space are all carefully considered. Whether the project includes two dwellings or a larger multi-unit site, our goal is to ensure each home feels private and well connected to outdoor areas. Smart design not only improves liveability but also enhances resale appeal and long-term rental value.
Guidance Through The Development Process
Developing townhouses involves more moving parts than a typical home build. Planning permits, overlays, engineering requirements, and service connections all need to be coordinated. Our experience in this space allows us to guide clients through the process step by step, helping to avoid delays and unexpected complications.
Midway through the journey, this is where experienced townhouse builders make a real difference. We liaise with councils, consultants, and trades to keep the project progressing smoothly while maintaining high construction standards. Clear communication and detailed documentation mean you always understand timelines, costs, and what comes next.
Building for Value and Long-Term Performance
When you build townhouses, quality construction is essential. Durable materials, strong structural work, and attention to finishing details all contribute to homes that perform well over time. We focus on building residences that not only look impressive at handover but continue to stand up to everyday use for years to come.
Energy efficiency and low-maintenance materials are also key considerations in modern developments. These features make properties more appealing to buyers and tenants while reducing long-term running costs. Our team helps you choose finishes and inclusions that balance upfront budget with ongoing value.
A Boutique Approach to Multi-Unit Projects
As a boutique custom townhouse builder, Tombay Constructions offers a level of personal service that larger, volume-driven companies often can’t match. Each development receives focused attention, and we take the time to understand your goals — whether that’s building for investment, resale, or to create homes for extended family.
We work with trusted trades who share our commitment to quality, ensuring consistent workmanship across every dwelling in the development. From structural framing to internal finishes, we maintain high standards so that each unit reflects the same level of care and detail.
Confidence From Concept To Completion
Townhouse and unit developments are significant investments, and choosing the right team can make all the difference. Towards the final stages of the project, working with experienced townhouse builders means you can feel confident that every element — from layout to finishes — has been delivered with precision and professionalism.
With Tombay Constructions, your development is managed with clear communication, practical expertise, and a genuine focus on quality. The result is a collection of well-designed homes that suit their surroundings, meet market expectations, and provide lasting value for years to come.
Get in touch
Reach out to see how we can bring your ideal property to life. Experience a seamless building journey with Tombay Constructions.