Can I Knock Down and Build a Duplex in Melbourne?
Making assumptions about a property’s development potential can be one of the most expensive mistakes a buyer makes.
Just this week, I inspected a beautiful family home in a quiet residential street. The marketing flyer proudly stated: “No Heritage” words that immediately attract developers and families thinking about future potential.
On the surface, the property looked perfect for a knockdown-rebuild dual occupancy project:
A wide frontage.
Driveways on either side.
A location where, just across the street, another dual-occupancy project had recently been completed.
But here’s the catch: on further research, I discovered that the other side of the road, despite being part of the same suburb, was actually in a different council. And that council had very different planning rules and a much more flexible approach to development.
If someone had bought this home on the assumption that they could mirror what was happening across the street, they could be in for a very costly mistake.
This is where working with a buyer’s advocate in Melbourne’s inner east or inner north suburbs becomes invaluable. It’s not just about buying the property, it’s about understanding the hidden rules, restrictions, and nuances that can dramatically impact its value and potential.
Why Buyers Get Caught Out
In high-demand areas like Kew, Camberwell, Hawthorn, Fitzroy North, or Northcote, homes are expensive and competition is fierce. Many buyers—particularly time-poor professionals and families—see potential upside in a property and assume that if one house down the road was redeveloped, theirs can be too.
The problem? Property development in Melbourne is governed by multiple layers of planning controls:
Council-specific zoning rules – Two streets in the same suburb may sit in different councils, each with its own regulations.
Heritage overlays – A property may not be listed as individually significant but can still fall within a heritage precinct that limits redevelopment.
Neighbourhood character policies – Some councils are more conservative, seeking to preserve the “leafy streetscape,” while others are more open to medium-density housing.
Minimum garden area requirements – Recent planning changes in Victoria impose garden space percentages that can restrict how much you can build.
Crossover and driveway rules – A wide frontage doesn’t always equal approval for two separate driveways.
Without deep research or professional advice, buyers risk paying a premium for land they can’t use the way they imagined.
The True Cost of Making Assumptions
Buying a property under the wrong assumption about its potential can cost hundreds of thousands, even millions.
Imagine this scenario:
You purchase a $3.5 million property in Camberwell assuming you can build two side-by-side luxury townhouses.
After settlement, you discover the local council has strict single-dwelling covenants and won’t allow dual occupancy.
Your “development upside” disappears overnight.
Not only have you potentially overpaid, but you’ve also tied up your finances in a property that doesn’t suit your goals. For families, that might mean compromising on lifestyle. For developers, it could mean financial disaster.
Council Differences: A Real-Life Example
The property I inspected highlights exactly why council boundaries matter.
On one side of the street:
A completed duplex project.
Council known for being more open to infill housing and modern townhouse design.
On the other side of the street:
A different council with stricter planning controls.
A greater emphasis on preserving single-dwelling character.
Less likelihood of duplex approvals, despite identical street appearance.
Two properties, across the road from each other, with completely different outcomes.
This is why it’s dangerous to assume what applies to one property will apply to another—even in the same postcode.
How a Buyer’s Advocate Helps You Avoid Costly Mistakes
As a buyer’s advocate in Melbourne’s inner east and inner north, part of my role is ensuring buyers never make costly assumptions. Here’s how I protect clients:
1. Deep-Dive Due Diligence
Before you even think about making an offer, I investigate overlays, zoning, and council policies. This means checking heritage, character guidelines, garden area requirements, and development precedent.
2. Council Consultation
I liaise with council planning departments and, where necessary, trusted town planners to get clear, accurate advice—not just assumptions based on neighbouring properties.
3. Spotting Red Flags
From restrictive covenants buried in contracts to misleading marketing flyers, I identify the risks that the average buyer might miss.
4. Value Protection
Even if you’re buying purely as an owner-occupier, understanding what can and can’t be done protects your resale value down the track. Nobody wants to find out their “knockdown potential” home is really only ever suitable as-is.
5. Local Knowledge
Having lived and worked in Melbourne’s inner east and inner north for years, I know which councils are flexible and which are conservative. This experience helps me guide buyers to the right property in the right location.
What to Consider Before Buying a “Potential Development Site”
If you’re looking at property in Melbourne with the idea of knocking down and rebuilding, here are key questions you must ask:
What is the zoning of the property?
Is there a heritage overlay, precinct, or character control?
What are the minimum garden area requirements?
Is there an existing covenant on the title?
Does the street already have examples of similar development—within the same council boundary?
What is the council’s general attitude towards medium-density development?
What will your neighbours or resident groups say? (Some councils take objections very seriously.)
Have you obtained independent planning advice—not just agent marketing material?
Why Families Should Care (Even If You’re Not Developing)
Even if you’re not planning to knock down and rebuild, due diligence matters. Here’s why:
Resale value – Future buyers may factor in development potential (or lack thereof) when valuing your property.
Renovation flexibility – Council restrictions can limit extensions, second storeys, or even external changes.
Neighbouring developments – Understanding zoning helps you anticipate what might be built next door.
For families buying in Kew, Camberwell, Hawthorn, Fitzroy North, Northcote, or Carlton North, peace of mind comes from knowing your home isn’t hiding planning headaches.
The Bottom Line
Buying a home in Melbourne’s inner east or inner north suburbs is one of the biggest financial and emotional decisions you’ll ever make. But when it comes to assessing property potential, assumptions are dangerous.
A wide frontage, a “no heritage” flyer, or a project across the road doesn’t guarantee development approval. Councils differ, overlays matter, and the rules can change street by street.
This is exactly why savvy buyers work with a buyer’s advocate—to make sure no stone is left unturned before committing to a multi-million-dollar purchase.
Thinking about buying in Melbourne’s inner east or inner north?
Whether you’re a family searching for your forever home or a buyer considering future development potential, I can help you cut through the noise, understand the real story behind a property, and buy with confidence.
👉 Book a free discovery call to discuss how I can support you.
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The Advocate Advantage
As a Buyer’s Advocate specialising in Melbourne’s inner east and inner north, I guide families, professionals in interstate relocators to secure homes in premium locations like Northcote, Thornbury, Ivanhoe, Fairfield, Hawthorn, Kew and Camberwell. My role is to:
Identify the best streets and micro-pockets.
Uncover off-market opportunities that never hit the major portals.
Provide objective advice on value, desirability, and future growth.
Handle negotiations so you secure the property with confidence.
Finding your dream home doesn’t have to be overwhelming. With the right guidance, the process becomes not only easier but far more rewarding.
Ready to Buy in MELBOURNE?
If you’re considering a move in Melbourne and want to make sure you’re buying right, let’s talk.
📞 0403 027 645
🌐 advocateagency.au
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