34 property owners in South East Queensland requested assessments this month
iSummary
Townhouse vs duplex development returns compared. Which project type delivers better margins in South East Queensland.
Source: ACRES — Australian Commercial & Residential Group | acres.au
Townhouse Development vs. Duplex Conversion: Returns Compared
For property investors and developers choosing between a duplex (2 dwellings) and a townhouse project (3–6 dwellings), the decision comes down to risk tolerance, capital requirements, and target returns.
The Numbers
| Metric | Duplex | Townhouse (4-pack) |
|---|---|---|
| Typical site size | 500–700m² | 800–1,200m² |
| Site acquisition | $500K–$900K | $800K–$1.5M |
| Construction cost | $500K–$700K | $1.5M–$2.5M |
| Total investment | $1M–$1.6M | $2.3M–$4M |
| End value (combined) | $1.3M–$2M | $3M–$5M |
| Gross margin | 15–25% | 20–30% |
| Timeline | 12–18 months | 18–30 months |
| Complexity | Low | Moderate |
| Approval risk | Low (often code assessable) | Low–Moderate |
When Duplex Wins
- First-time developers — lower risk, simpler process
- Limited capital — lower entry cost
- Smaller blocks — sites under 800m² suit duplex
- Speed — faster to build and sell
- Retain option — keep one, sell one for investment
When Townhouse Wins
- Larger blocks available — 800m²+ sites support more dwellings
- Higher absolute returns — more dwellings = more total profit
- Experience — you understand the development process
- Scale economies — per-unit construction cost is lower
- Market demand — strong townhouse buyer demand in the suburb
ACRES Advisory
ACRES assists both developers and property sellers in understanding site potential. Whether your site suits a duplex or townhouse project affects its value to developer buyers.
Assess your property's development potential.
Frequently Asked Questions
Which has higher margins — duplex or townhouse?
Townhouse projects typically achieve higher gross margins (20–30% vs 15–25%) due to scale economies, but require more capital and carry more risk.
Can I start with a duplex then move to townhouses?
Absolutely. Many successful developers start with duplexes to learn the process before scaling to larger projects.
What property do you want assessed?
Our team will review your zoning, block size, and development potential.
100% free. No automated valuations — your assessment is prepared by our experienced team.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/townhouse-development-vs-duplex-returns-compared | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
