What should I know before building townhouses in Canberra?

By Alessandro Tarzia · Builder & Director, Ottimo Homes · 15+ years' industry experience · ACT Builder Licence 20121515

Begin with site feasibility

The first question is not simply how many homes can fit on the land. A useful feasibility review considers the zone and Crown lease, block area and frontage, slope, orientation, easements, protected trees, existing services and access from the street. Planning controls for setbacks, site coverage, building height, parking, private open space and the relationship with neighbouring properties also shape the design.

These matters are connected. A driveway affects the position of garages and landscaping. Finished floor levels affect retaining, drainage and privacy. Service corridors can compete with trees, deep soil areas and usable outdoor space. Testing the whole site early is more valuable than forcing a preferred floor plan onto a block that cannot support it comfortably.

Design the homes as one development

Each townhouse should work as a home in its own right, but the buildings also need to function together. Orientation, natural light, privacy, outlook, storage, waste access, visitor movement and the location of bedrooms and living areas all contribute to how the completed development will feel.

Attached or closely spaced homes also require careful structural, fire, acoustic and service coordination. Repeating sensible details can improve efficiency, while considered variation in entries, materials and landscaping can give each home a clear identity without making the project visually unsettled.

Approvals, services and project costs

A townhouse development that increases the number of dwellings on a block requires development approval. The design team may include a building designer or architect, surveyor, engineers, energy assessor, landscape designer, building certifier and other specialists required by the site or proposal. Detailed building approval documents follow the planning process.

The budget needs to cover more than the buildings. Demolition, excavation, retaining, stormwater, driveways, landscaping, utility connections, external lighting, waste areas and work within shared spaces can represent a significant part of the project. If the Crown lease needs to be changed to permit the development, a lease variation and Lease Variation Charge may also apply. This should be investigated before the project is treated as financially settled.

Plan for completion and unit titling

If the homes are intended to be separately unit titled, that process should be considered during design rather than left until the end. Unit boundaries, common property, car spaces, access, shared services, addresses and management responsibilities all need to align with the approved and completed development.

After construction, a licensed unit title assessor prepares the required assessment report. The process checks matters including compliance with the approved plans and conditions, landscaping, access, unit and car space identification and the necessary completion certificates. The units plan is then submitted through the relevant approval and registration process.

Understand the developer licensing requirements

From 1 October 2026, ACT property developer licensing requirements apply to residential development projects involving three or more dwellings. A licence can be required when applying for development approval, arranging building work at specified approval stages and advertising or selling homes off the plan. A licence must also be held during the regulated residential building work.

The requirements can depend on the activity, project stage and transitional provisions. Anyone considering a project of three or more dwellings should check the current ACT Planning guidance and obtain appropriate legal, planning and financial advice before committing to a structure, programme or sales strategy.

Bring the decisions together early

Townhouse projects reward careful coordination. The design, approval pathway, construction method, services, titling plan and budget should be developed as parts of one strategy. Early decisions are easier and less expensive to adjust than changes made after approvals, contracts or construction are underway.

Ottimo Homes can review the block, discuss the intended outcome and work alongside the right consultants to test buildability and cost as the design develops. For full detail on how Ottimo Homes approaches these projects, visit the townhouse builder in Canberra page. If you are deciding between two homes and a larger project, our guide to dual occupancy in Canberra is another practical place to begin.

Official ACT resources

The following ACT Government pages set out the current rules. Block specific planning, legal and financial advice may still be required.

• ACT Planning: Missing Middle Housing Reforms
• ACT Planning: Territory Plan technical specifications
• ACT Planning: major plan amendments