Townhouse vs Unit vs Apartment: Which Melbourne Property Type Suits You?

Choosing between a townhouse, unit, or apartment in Melbourne can feel overwhelming, especially with property prices across the inner west continuing to climb. Whether you're a first-home buyer looking in Yarraville or an investor eyeing dual occupancy opportunities, understanding the key differences helps you make the right choice.

Each property type offers distinct advantages, and what works perfectly for your neighbour might not suit your lifestyle at all. Let's break down what sets these housing options apart in Melbourne's competitive market.

Understanding Each Property Type

What Makes a Townhouse Different

A townhouse spans multiple levels and typically shares one or both walls with neighbouring homes. Unlike units or apartments, townhouses feel more like traditional houses with separate entrances, private outdoor spaces, and individual parking arrangements.

Most modern townhouses feature open-plan living areas, smart storage solutions, and double-storey layouts that separate busy family zones from quiet bedrooms. In suburbs like Yarraville, townhouse construction focuses on maximising natural light while maintaining privacy from neighbours.

Units: The Middle Ground Option

Units usually occupy single levels and can be either detached or part of small complexes. They offer a simpler lifestyle compared to townhouses, with less maintenance responsibility and often lower purchase prices. Units work particularly well for buyers who want ownership benefits without extensive upkeep commitments.

Apartments: High-Density Living

Apartments form part of larger multi-storey buildings and typically offer shared amenities like gyms, pools, or communal gardens. While outdoor space is usually limited to balconies, apartments often provide convenient inner-city locations with easy access to transport and entertainment.

The Complete Comparison: Features That Matter

Building Layout and Structure

Townhouses are multi-level homes that often share one or two walls with neighbours, giving you that house-like feel with vertical living space. Units are usually single-storey and can be either detached or part of small complexes, offering simpler layouts. Apartments form part of larger multi-storey buildings with shared common areas and facilities.

Outdoor Space Options

Townhouses provide private outdoor areas like courtyards or backyards - perfect for Melbourne's outdoor lifestyle. Units may include small courtyards or gardens, though this varies significantly between properties. Apartments typically offer balconies with limited access to private outdoor areas.

Ownership and Responsibility

Townhouses are individually titled, meaning owners are responsible for their own lot and immediate surroundings. Units can be either strata or individual title depending on the development. Apartments are strata-titled with communal ownership of building facilities and shared decision-making through body corporate.

Community and Lifestyle

Townhouses offer a balanced mix of privacy and neighbour interaction - you have your own space but share common boundaries. Units provide quiet, simple living suited for low-maintenance lifestyles. Apartments mean high-density living with more neighbours and extensive shared spaces.

Who Lives Where

Townhouses attract families, downsizers, and professionals who want space without full house maintenance. Units suit singles, couples, and retirees seeking simplicity. Apartments work well for singles, young professionals, and students prioritising location and amenities over space.

Key Townhouse Advantages for Melbourne Buyers

Privacy Meets Community

Townhouses offer the perfect balance between having your own space and being part of a neighbourhood community. You get private outdoor areas for entertaining or relaxing, while still benefiting from the security and social connections that come with attached living.

This balance particularly appeals to Melbourne families who want space for children to play safely while maintaining connections with neighbours and local amenities.

Practical Living Features

Modern townhouse design focuses on making compact spaces feel surprisingly spacious. Popular features include:

• Open-plan living areas that create natural flow and maximise light
• Built-in storage solutions like wardrobes, under-stair cupboards, and walk-in pantries
• Double-storey layouts that efficiently separate living zones from bedrooms
• Low-maintenance gardens perfect for busy Melbourne lifestyles

These design elements help families and downsizers alike use every square metre effectively without sacrificing comfort or style.

Investment Potential

From an investment perspective, townhouses often outperform units and apartments in Melbourne's market. They appeal to a broader range of tenants and buyers, from young professionals wanting more space than apartments offer, to families seeking house-like living without the full maintenance burden.

Dual occupancy townhouse developments can generate particularly strong returns, especially in sought-after inner west suburbs where land values continue rising.

When Each Property Type Makes Sense

Choose a Townhouse If You Want:

• More space than an apartment but less maintenance than a house
• Private outdoor area for entertaining or children
• Strong investment potential with broad tenant appeal
• House-like feel with community benefits
• Potential for dual occupancy development

Consider a Unit If You Prefer:

• Simple, low-maintenance living
• Lower purchase price compared to townhouses
• Quiet lifestyle with minimal neighbour interaction
• Individual ownership without complex strata arrangements
• Suitable for retirees or couples wanting to downsize

An Apartment Suits You If You Need:

• Inner-city location with transport convenience
• Shared amenities like pools or gyms
• Lower entry price point for first-home buyers
• Minimal maintenance responsibilities
• Student or young professional lifestyle

Location Considerations in Melbourne

The choice between townhouse, unit, or apartment often depends on where you want to live in Melbourne. Inner suburbs like Yarraville offer all three options, but outer suburbs might have fewer apartment choices and more townhouse developments.

Consider proximity to schools if you have families, transport links for commuting, and local amenities like shops and parks. Townhouses often provide the best balance for families wanting suburban feel with urban convenience.

Making Your Melbourne Property Choice

Your lifestyle needs, budget, and long-term plans should drive your decision between townhouse, unit, or apartment living. Townhouses offer the most flexibility - they work for families, couples, investors, and downsizers alike.

If you're considering new construction, townhouses also provide opportunities for customisation that units and apartments rarely offer. You can tailor layouts, finishes, and outdoor spaces to match your specific needs and preferences.

The Melbourne property market rewards informed decisions. Understanding these key differences helps ensure your choice aligns with both your immediate needs and future goals.

Considering townhouse living in Melbourne's inner west? Infinity Built specialises in custom townhouse construction in Yarraville and surrounding suburbs. From single dwellings to dual occupancy developments, we help clients create homes that perfectly balance lifestyle and investment potential. Contact us to discuss your townhouse project today.