At Sienna Homes, we understand that choosing the right home for you is one of the most important decisions you’ll make. Whether you’re a first-home buyer, downsizer or investor, a townhouse can offer the perfect balance. They combine the space and privacy of a standalone home with the low-maintenance appeal of apartment living.
According to the Australian Bureau of Statistics, over 13% of Australians now live in medium-density housing such as townhouses, and they continue to be one of the fastest-growing types of houses across Melbourne and other major cities.
In this article, we’ll explain what a townhouse is, the features that make them so popular and how they can meet the needs of buyers just like you.
Defining a Townhouse
A townhouse, sometimes referred to as a townhome, is a type of residential property that often shares one or more walls with adjacent properties. Unlike a detached single-family home, townhouses are typically part of a row of similar homes. They are designed to maximise space.
Features of a Townhouse
At Sienna Homes, we design townhouses with different buyer needs in mind.
First-home buyers may be looking for an affordable and low-maintenance home, ready for living.
Those looking to downsize might prefer accessibility, convenience and modern designs that make day-to-day living more comfortable.
If you’re after an investment property, you’ll want your home to appeal to tenants and provide steady rental returns.
We make sure our homes have the looks, layout and inclusions that will suit your specific needs. Let’s look in more detail at how:
1. Bordering Walls
Most townhouses are part of a row or development, sharing one or more walls with neighbouring homes. This makes them more affordable to build and buy, perfect for first-home buyers looking for maximum value.
2. Multiple Floors
Australian townhouses average 174 sqm in size (according to Housing Industry Association), larger than the average apartment or unit size, and so offer generous space for living. Having multiple floors also creates a clear separation between living and sleeping zones, ideal for professionals or families with older kids.
Downsizers often prefer single-storey townhouse options (yes, they exist!), giving easy access to all spaces without stairs, making daily life simpler and safer.
3. Outdoor Space
While the overall land size may be smaller than a detached home, you often still get a private courtyard, balcony, or garden. This is great for families or those with pets, and also makes your home more desirable to potential renters.
4. Garage or Carport
Secure parking is a standard inclusion in all of our townhouse designs, ensuring convenience when arriving at your home with the shopping, ease of entry to your home, or if you’re looking to maximise the ROI on your home.
5. Energy Efficiency and Sustainability
As of 1 May 2024, all new townhouses in Victoria have to meet a 7-star NatHERS (Nationwide House Energy Rating Scheme) rating. All our homes at Sienna meet this target, meaning you get a more energy-efficient, comfortable home that will be cheaper to run all year round.
According to energy.gov.au, energy performance upgrades can deliver annual net savings from the first year of between $1,058 and $1,578.
Plus, the new “Whole-of-Home” rating also considers energy use from appliances, lighting, heating and cooling, giving you long-term savings and a smaller environmental footprint.
Detached vs. Attached Townhouses
Most of the townhouses we build are connected in some way, sharing at least one wall with a neighbour. There are some exceptions, such as if your home is at the end of a row, so only sharing one wall, which could be considered as a semi-detached townhouse. These types of home tend to be the most affordable and popular choice, particularly with first-home buyers.
Fully detached townhouses are built as part of a development on their own individual lot. They’re similar to the homes around, but don’t share any common walls. These homes offer more privacy and are often favoured by buyers who want the benefits of a freestanding home with lower maintenance. It could offer greater rental appeal thanks to the extra private spaces, allowing you to get more from your investment.
All our townhouses are built to the latest National Construction Code (NCC) standards, so no matter how many shared walls your home has, you know it will be built to last.
Single-Storey vs. Multi-Storey Townhouses
Single-storey townhouses are ideal for those looking for low-maintenance living (downsizers, retirees, or families with young kids). As all rooms are on the same floor, it makes it easier to access every space, and many prefer the convenience of having everything available to them without needing to tackle stairs.
Multi-storey townhouses provide more separation between living and sleeping areas, making them great for renters, professionals who need extra space or those with older children who need a little more privacy. While traditionally bedrooms are located upstairs, many modern townhouses switch it up, with kitchens and living spaces upstairs and bedrooms downstairs, particularly if they overlook a park.
Pros and Cons of Townhouse Living
Pros:
- More affordable than detached houses
- Better privacy and space compared to apartments and units
- Low-maintenance lifestyle for easier upkeep
- Energy-efficient and cost-saving designs
- Close to amenities and transport
Cons:
- Less privacy than a standalone house
- Not as individual as other homes
- Smaller land size compared to traditional detached homes
Frequently Asked Questions
1. Do Townhouses Have Backyards?
Yes, most include private outdoor spaces, perfect for relaxing or entertaining. If not a backyard, an internal courtyard or balcony.
2. Who Are Townhouses Best Suited To?
They’re great for first-home buyers, downsizers and investors looking for affordable, modern, low-maintenance living.
3. What’s the Difference Between a Villa and a Townhouse?
A villa is usually a single-storey, detached home, whereas a townhouse can be either single-storey or multi-storey and often attached.
4. What’s the Difference Between a Unit and a Townhouse?
A unit is typically part of a larger apartment complex with common areas, whereas a townhouse has its own entrance and often includes outdoor space. Unlike units, with townhouses, there is no owners’ corp. or strata fees.
5. What Is a Townhouse Complex?
A planned development of multiple townhouses, often with shared amenities like landscaped gardens or communal parking.
Ready to Explore Your Options?
Here in Victoria, demand for medium-density housing such as townhouses far outpaces supply, making them a smart choice now and for the future. Whether you’re stepping onto the property ladder, downsizing for easier, carefree living, or investing in a home with broad market appeal, Sienna Homes has a range of designs to suit your needs.
Explore our townhouse designs today, and let’s help you find your perfect fit.

Fiona Lowry is the Communications Manager at Sienna Homes.