Types of Residential Properties in Australia – And Which One Suits You Best

Lina Zheng
4 days ago
5 min read

Whether you’re a first-home buyer, downsizer, investor, or landowner, understanding Australia’s diverse range of property types is crucial for making the right decision—and maximising your investment potential.

In this guide, we break down the most common residential property types in Australia, compare their pros and cons, and show how OwnerDeveloper has transformed each into high-performing projects across NSW and QLD.

🏡 1. Freestanding Houses – Australia’s Classic Dream

Best for: Families, long-term investors, lifestyle-focused buyers
Title: Torrensd
Key Benefits: Space, privacy, strong capital growth

Freestanding homes remain the cornerstone of Australian property. These detached houses sit on their own plot of land and offer total autonomy over design, renovation, and resale.

Pros:

Strong capital growth (especially land value)
Full renovation flexibility
Great for families and pets

Cons:

Higher upfront cost
Full maintenance responsibility
Often slower rental yields than multi-dwellings

💡 Case in Action – Mount Colah, NSW

At Mount Colah, OwnerDeveloper is delivering a standout subdivision featuring ten freestanding family homes on over 10,400m². Each home will include four spacious bedrooms and a detached granny flat—offering multigenerational flexibility, strong capital growth, and long-term value for both residents and investors.

🏘 2. Duplexes – Dual Living, Double Opportunity

Best for: Investors, downsizers, multigenerational families
Title: Torrens or Strata
Key Benefits: Dual rental income, development potential

Duplexes offer two separate homes on one title or subdividable block—making them a smart strategy for homeowners and developers alike.

Pros:

Two income streams from one build
Live in one, rent or sell the other
May qualify for fast-tracked CDC approvals

Cons:

Shared wall may impact privacy
May require strata arrangements
Requires sufficient land width for CDC eligibility

💡 Case in Action – Merrylands, NSW

In Merrylands, OwnerDeveloper managed a dual-occupancy development that combined a modern 4-bedroom main residence with a separate 3-bedroom granny flat. Designed to maximise living and income potential on a single suburban block, the project perfectly demonstrates the benefits of duplex-style development for families and investors.

🏢 3. Apartments & Units – Affordable Urban Convenience

Best for: Singles, young professionals, urban investors
Title: Strata
Key Benefits: Low maintenance, high rental demand

Apartments (aka units) are self-contained dwellings in multi-storey buildings. They suit city dwellers and investors seeking rental yields near transport and amenities.

Pros:

Affordable entry point
Often located in high-demand areas
Shared amenities like gyms, pools, and security

Cons:

Strata fees and rules apply
Limited renovation freedom
Slower capital growth compared to houses

🏘 4. Townhouses – Balance Between Privacy and Affordability

Best for: Small families, first-home buyers, investors
Title: Strata or Torrens
Key Benefits: Multi-level living, private courtyards, lower price point

Townhouses provide more space than apartments with the feel of a home. Typically two-storey, they’re found in suburban complexes with communal facilities.

Pros:

Cost-effective alternative to freestanding homes
Attractive to renters and buyers alike
Low-maintenance lifestyle

Cons:

Strata fees often apply
Shared walls = less privacy
Some design restrictions

💡 Case in Action – Drayton, QLD

OwnerDeveloper revitalised a former 4-unit site in Drayton, Toowoomba, transforming it into six contemporary townhouses. This smart redevelopment generated a 28% profit on cost and a 23% annualised return, proving the financial viability of townhouse projects in growing regional centres.

🏠 5. Villas – One-Storey Comfort with a House-Like Feel

Best for: Downsizers, retirees, low-maintenance buyers
Title: Strata
Key Benefits: Single-level access, easy upkeep, courtyard living

Villas are single-level homes in quiet complexes. They offer the charm of a house with simpler maintenance and are ideal for accessibility.

Pros:

Great for older residents or mobility needs
Often includes garage and garden
Low maintenance

Cons:

Limited supply
Smaller than freestanding homes
Less potential for expansion

💡 Case in Action – Springfield Lakes, QLD

In Springfield Lakes, OwnerDeveloper built a collection of single-level homes ideal for first-home buyers and downsizers. With smart floorplans, modern finishes, and private courtyards, these homes aligned perfectly with villa-style living and achieved impressive rental yields—even during uncertain market conditions.

🧱 6. Terraced Homes – Inner-City Charm & Efficiency

Best for: Professionals, renovators, inner-city investors
Title: Torrens or Strata
Key Benefits: Heritage appeal, urban lifestyle, private courtyards

Terraces are narrow, multi-storey dwellings often found in historical areas. Though compact, they offer architectural charm and proximity to CBD amenities.

Pros:

Strong buyer demand in gentrified suburbs
Private yards with urban walkability
Great for capital growth in blue-chip areas

Cons:

Can require heritage approvals for changes
Limited parking or outdoor space
Often strata-titled in shared developments

🏡 7. Granny Flats – Secondary Dwellings, Primary Returns

Best for: Multi-gen families, passive investors, homeowners with land
Title: Same title as main residence
Key Benefits: Secondary rental income, affordable build cost

Granny flats are self-contained dwellings built on an existing lot. Popular under recent NSW planning reforms, they allow owners to boost yield without subdividing.

Pros:

Up to 30% uplift in property value
Strong rental demand (singles, students, retirees)
No strata or additional council rates

Cons:

Can’t be sold separately
Must meet CDC or DA guidelines
Reduces backyard space

💡 Case in Action – Strathfield, NSW

OwnerDeveloper delivered a premium two-bedroom secondary dwelling in Strathfield, built as a stand-alone unit on a 1,000m² residential block.

With open-plan interiors, private outdoor space, and luxury finishes, the dwelling was designed for both investors and downsizers seeking a stylish, self-contained living solution.

As a modern, high-end granny flat, it demonstrates how well-planned secondary dwellings can elevate property value, meet rental demand, and support multi-generational living—without overdeveloping the site.

📈 What Type of Property Should You Choose?

It all depends on your goals.

Goal	Best Property Type
💸 Maximise rental yield	Duplex, Granny Flat, Townhouse
🏠 Live with extended family	Dual-Occupancy, Villa, House
🏢 Low-maintenance investment	Apartment, Secondary Dwelling
🛠 Renovation and capital growth	Freestanding House, Terrace
👨‍👩‍👧‍👦 Long-term family home	House, Duplex, Villa
📊 First investment or development	Duplex (JV model), Townhouse, Granny Flat

🛠️ Why Work with OwnerDeveloper?

We don’t just talk about property—we deliver it. Whether it’s a duplex in Merrylands, a townhouse in Mount Gravatt, or a 6-unit reimagined site in Drayton, we’ve helped everyday Australians unlock their land’s full potential with: