Why Melbourne's inner west has become one of the most popular regions for new townhouses
Townhouses have emerged as an increasingly popular choice for homebuyers seeking a balance between the convenience of apartment living and the space of a standalone house.
Offering a unique blend of affordability, space, and privacy, townhouses are an ideal solution for those looking to bridge the gap between these two traditionally distinct property types. With their multi-level layouts, townhouses often feature larger living areas than apartments, while still being more affordable and manageable than detached homes, making them a sweet spot for many buyers in today’s competitive real estate market.
For upsizers, townhouses offer the opportunity to expand without stepping into the larger, more expensive realm of detached homes. Buyers with growing families or those who simply need more space often find townhouses an appealing option. With multiple bedrooms, additional living areas, and often private outdoor spaces, townhouses provide room to spread out while remaining in a desirable location. Many townhouses are situated in vibrant urban or suburban neighbourhoods, offering a balance of convenience and space that single-family homes may not always deliver.
At the same time, townhouses are equally attractive to downsizers looking to simplify their lives without sacrificing too much space or comfort. For empty-nesters or retirees who no longer need the upkeep of a large family home, townhouses offer an appealing compromise. They typically require less maintenance than a detached house but still provide ample space for comfortable living. Many townhouses also come with features like low-maintenance yards and modern amenities, making them an easy choice for those wanting to reduce their living footprint without feeling cramped.
Melbourne's inner west has become increasingly popular for townhouse development due to a combination of factors that make these areas highly appealing to both developers and buyers. As Melbourne continues to grow, the inner west offers a strategic location with easy access to the city’s CBD, making it an attractive option for those who want to live close to the action while still enjoying a more relaxed, suburban lifestyle.
One of the key reasons for the popularity of townhouse developments in these suburbs is the relatively affordable land prices compared to other inner-city areas. While the inner city and more established suburbs have seen significant price increases, the inner west still offers more value for money, making it an appealing area for both rightsizers and downsizers, and even first home buyers.
The inner west is also known for its vibrant community, rich culture, and proximity to local amenities, which further adds to the attractiveness of townhouse living. Suburbs like Yarraville and South Kingsville are popular for their charming local shops, cafes, restaurants, and strong sense of community, while Altona North has easy access to major shopping centres and transport links. These areas are also close to parks, schools, and recreational spaces, making them ideal for families, professionals, and retirees alike.
The area's ongoing gentrification is another contributing factor to the rise of townhouse developments. As these suburbs evolve, more young professionals and families are moving in, looking for modern, low-maintenance housing options that offer a mix of style, space, and convenience. With good public transport connections, proximity to major road networks, and the overall appeal of the local lifestyle, demand in Melbourne’s inner west isn't likely to abate.
Some of Australia's biggest developers have descended on Melbourne's inner west, further solidifying the view the area will continue to grow.
We've rounded up the top five townhouses currently being developed or recently completed in Melbourne's inner west.
Project: Bradmill, Yarraville
Location: 355-359 Francis Street, Yarraville VIC 3013
Developer: Frasers Property Australia
National development giant Frasers is producing one of the best townhouse communities in the inner west of Melbourne, focusing on sustainability and community.
The Bradmill townhouses, designed by renowned architecture firm Rothelowman, offer prospective buyers three or four bedrooms across two or three levels.
The all-electric townhouses, which have been given 6 Star Green Star Communities rating from the Green Building Council of Australia, have been strategically located in the wider masterplan that is becoming the central hub of the inner west.
They neighbour the vast grounds of McIvor Reserve, and will be in walking distance of Bradmill Quarter, the proposed retail precinct spanning around 8,000 sqm that will home all the essentials services complemented by speciality shops and culinary delights.
The precinct will include a full-line supermarket, childcare and medical services alongside locally owned stores, eateries and conveniences. Biophilic design for retail spaces means locals and visitors will shop, dine and roam amidst green, healthy spaces.
Bradmill is currently under construction. The townhouses will be completed toward the end of 2025.
What: The Fabric
Where: 188-198 Blackshaws Road, Altona North VIC 3025
Who: Mirvac
Another national developer, Mirvac, has committed to development in the inner west.
Their masterplanned community, The Fabric, will be home to nearly 600 townhouses once completed, near Newport Station and supported by Patchwork Park & The Cooks Patch resident kitchen garden facility.
There will be over three hectares of community open space in the fully electric community.
The townhomes come in different configurations, Angora, Bedford, and Zephyr, catering to a range of lifestyles, with floorplans offering flexible living spaces, private gardens, and energy efficiency with solar panels powering the homes.
Townhouses in the Blackshaws Road developments have already been completed. The rest are slated for completion in mid-2025.
What: Haven, Altona North
Where: 278-288 Blackshaws Road, Altona North VIC 3025
Who: Stockland
Yet another development giant, Stockland, is creating a masterplan in the inner west.
Another in Altona North, Haven comprises 289 townhomes in 13 unique styles. SJB Architects has designed the sustainable two, three, and four-bedroom townhomes, some of which are designed with a reverse layout, pushing the living areas to the top of the townhouse so they can capture better views compared to a traditional floorplan.
Buyers benefit from industrially-inspired interiors, Fisher & Paykel appliances, and access to a new central park and future planned amenities.
Haven is complete and ready to move in.
What: Kings Lane, Kingsville
Where: 50-58 New Street, South Kingsville VIC 3015
Who: Blue Run
Boutique developer Blue Run recently released Kings Lane, just 25 three and four-bedroom townhouses designed by Rothelowman.
Located just eight kilometres from Melbourne’s CBD on New Street, the townhouse offer a rare opportunity to buy three bedrooms under $1 million.
With South Kingsville undergoing rapid transformation, the project benefits from proximity to emerging retail and hospitality spaces, including Union Quarter.
The townhomes are particularly aimed at young families and downsizers seeking more space closer to the city.
Currently under construction, townhouses at Kings Lane will complete in 2026.
What: South Kingsville Place
Where: 79 Stephenson Street, South Kingsville VIC 3015
Who: Metro Property Group
Near Kings Lane is South Kingsville Place by Metro Property Group, uniquely designed by ClarkeHopkinsClarke Architects with industrial-inspired rooflines.
The two, three and four-bedroom homes integrate energy-efficient features such as solar panels, double-glazed windows, heat pump hot water systems, and EV chargers.
Flexible layouts include downstairs rooms that can serve as home offices or guest bedrooms and large living areas that connect to outdoor spaces.
The neighbourhood includes pedestrian-friendly streets, tree-lined parks, and a coastal-inspired landscape by MDG Landscape Architects.
The townhouse start from under $900,000 and are expected to complete by the end of 2025.
