Victorian planning resource · $39 planning report

Can I build townhouses or units in Victoria?

Three or more dwellings on a lot — a townhouse or unit development — needs a planning permit in Victoria, assessed under Clause 55 (ResCode). Lot size, the mandatory garden area requirement and neighbourhood character decide what fits. Here's what's required, and a fast way to check.

Victorian owners and small developers testing whether a block can take a row of townhouses or a unit development — before committing to a designer or buying a site.

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Townhouses are multi-dwelling development under Clause 55

A townhouse or unit project — three or more dwellings on a single lot, up to four storeys — is assessed under Clause 55 of the planning scheme, the same ResCode standards as a dual occupancy but applied to a larger development. (Above four storeys, or for an apartment-style building, Clause 58 applies instead.) Clause 55 covers neighbourhood character, density, building height, street setback, side and rear setbacks, site coverage, private open space, overlooking, overshadowing and car parking.

There's no fixed 'maximum number of townhouses' in the scheme — the yield comes out of the standards. How many dwellings fit is driven by lot size, the garden area requirement, car parking and the setback and open-space rules, all read against the character the zone is trying to achieve.

A planning permit is required for three or more dwellings on a lot
Assessed against Clause 55 (ResCode); apartments of 5+ storeys fall under Clause 58
Yield is set by the standards, not a fixed dwelling cap
The mandatory garden area requirement (25–35% over 400 m²) applies
Each dwelling needs private open space and compliant car parking
The Residential Growth Zone is the most accommodating; the Neighbourhood Residential Zone the most constrained

Garden area and character set the yield

As with a dual occupancy, the mandatory garden area requirement is usually the first hard limit: lots over 400 m² must keep 25–35% as garden (25% for 400–500 m², 30% for 500–650 m², 35% above 650 m²), and a permit can't be granted if it isn't met. That single rule often decides how many townhouses a site can carry.

After garden area, neighbourhood character is the main battleground — Clause 55 asks whether the development respects the established and preferred character of the street. The zone matters: the Residential Growth Zone and parts of the General Residential Zone are geared to higher density and taller buildings, while the Neighbourhood Residential Zone caps height and is the hardest place to fit multiple townhouses.

Plan for subdivision

Townhouse projects are almost always built with subdivision in mind — get the Clause 55 permit for the dwellings, then subdivide so each townhouse sits on its own title. The dwelling and subdivision permits are separate (the subdivision is assessed under Clause 56) but are usually sought together.

Overlays can change everything: a Heritage Overlay, Significant Landscape Overlay or Design and Development Overlay can cap height, dictate built form or trigger extra assessment, so they're worth checking before you commit to a site.

Check your site before you design

How many townhouses a block can take depends on lot size, zone, overlays and the garden area maths. Our $39 Victorian planning report identifies your zone, overlays and the controls that apply, with a plain-English read on multi-dwelling potential.

Start free with the Property Snapshot to confirm your zone and overlays.

Real example

Worked example

A 1,000 m² Residential Growth Zone lot must keep 35% (≈350 m²) as garden area; the balance, after driveways and parking, might comfortably carry three or four double-storey townhouses. The same lot in a Neighbourhood Residential Zone with a height cap and a Heritage Overlay may only support two.

The statutory basis

Three or more dwellings on a lot are assessed under Clause 55 (ResCode) of the Victoria Planning Provisions, made under the Planning and Environment Act 1987; apartment developments of five or more storeys fall under Clause 58, and subdivision under Clause 56. The mandatory garden area requirement sits in the residential zones (Clause 32). Zone schedules and overlays add controls — maximum building heights, neighbourhood character objectives and heritage controls in particular. Always confirm the controls for your address.

Clause 55 — ResCode (two or more dwellings)

Multi-dwelling development up to 4 storeys

Residential zones (Clause 32)

Mandatory garden area requirement (25–35%)

Clause 56 / Clause 58

Subdivision (56) / apartments (58)

Frequently asked questions

How many townhouses can I build on my block in Victoria?

There's no fixed cap — the number comes out of the Clause 55 standards. The mandatory garden area requirement (25–35% of the lot over 400 m²), car parking, private open space and setbacks together determine the yield, read against the zone's preferred character.

Do I need a permit to build units in Victoria?

Yes. Three or more dwellings on a lot need a planning permit assessed under Clause 55 (ResCode). Above four storeys, or for an apartment building, Clause 58 applies instead.

What's the difference between Clause 55 and Clause 58?

Clause 55 covers two or more dwellings on a lot (townhouses, units) up to four storeys; Clause 58 covers apartment developments of five or more storeys. Most townhouse projects sit under Clause 55.

Which zone is best for townhouses?

The Residential Growth Zone is geared to higher density and taller buildings, followed by the General Residential Zone. The Neighbourhood Residential Zone caps building height and is the most constrained for multi-dwelling development.

Can I subdivide a townhouse development?

Yes — that's the norm. Get the Clause 55 permit for the dwellings, then subdivide (assessed under Clause 56) so each townhouse gets its own title. The two are separate permits, usually sought together.

$39 planning report — ready when you are

A plain-English read on exactly what your property allows — zone, overlays and the rules that decide your project.