Why one type of home could see its popularity rise under the latest government housing incentive.
The government’s 5% deposit scheme[1] for first-home buyers is now in effect. That means that Australians who have never owned property before now have the opportunity to buy with less than a 20% deposit, while avoiding the cost of lenders mortgage insurance that would usually be owing.
Australian first-home buyers will be looking to get into the market with as little as a 5% deposit thanks to a new government scheme. Image: Getty
One housing type that could see an influx of attention is the townhome market, due to the price point and size of these homes.
They’re traditionally bigger than apartments, often offering three bedrooms and more outdoor space than in a traditional unit block, while lower-maintenance and not quite as big – or as pricey – as a detached house.
With the average age of a first-home buyer now sitting at 34, according to the latest data from Westpac, and family-minded buyers in that cohort looking for a home that will accommodate current or future children, it’s easy to see how townhomes might appeal.
PropTrack’s executive manager of economics, Angus Moore, commented on the potential appeal of this type of housing as the scheme kicks off.
“For some first-home buyers, particularly those that are a bit older – and first-home buyers have been getting older over the last two to three decades – having the extra bedroom and extra space that a townhouse provides relative to an apartment may be attractive.”
Melbourne’s new development in Altona North offers several townhomes that fit within the budget of the scheme. Image: realestate.com.au
Coupled with some state-based incentives that offer discounts or exemptions on stamp duty if buyers are purchasing a brand-new build[2], it also wouldn’t be a surprise to see interest increase in off-the-plan townhome developments in the months ahead.
Unfortunately, however, the number of new townhouses available off the plan could be limited.
According to the latest figures from the Australian Bureau of Statistics[3], townhome approvals have been on something of a downward slide lately.
In August 2025, approvals for townhomes fell 19.1% month-over-month, with just 2424 dwellings getting the go-ahead during the month. This is compared to a monthly average of 2,632 townhouse approvals in the 12 months prior to August 2025.
With price caps in place for the maximum price that a first-home buyer can pay and still be eligible for the scheme, not all townhomes will qualify as an eligible property.
But in the new homes market, there are a number of townhomes across metro and regional zones that could soon be in the headlights for first-home-buyers.
| Area | Max. purchase price |
| NSW – capital city and regional centre | $1,500,000 |
| NSW – other | $800,000 |
| VIC – capital city and regional centre | $950,000 |
| VIC – other | $650,000 |
| QLD – capital city and regional centre | $1,000,000 |
| QLD – other | $700,000 |
| WA – capital city | $850,000 |
| WA – other | $600,000 |
| SA – capital city | $900,000 |
| SA – other | $500,000 |
| TAS – capital city | $700,000 |
| TAS – other | $550,000 |
| ACT | $1,000,000 |
| NT | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
In the south-west Sydney suburb of Edmondson Park, buyers can live within walking distance of the new neighbourhood hub that’s the centre of Ed.Square[4], being developed by Frasers.
With over 80 retailers like Eat Street, Event Cinemas, Coles, copious eateries, and more, Sydneysiders are being drawn by the convenience of this neighbourhood, while still in easy reach of the city’s CBD.
One- two- and three- bedroom townhomes are available here, with the larger homes still under the program price cap, at $1.2 million.
Ed.Square is a new walkable neighbourhood in Sydney’s south-west. Image: realestate.com.au
In Melbourne, 11km out of the city centre, a new development at Altona North fits within the the budget of prospective buyers under the scheme. Townhomes at Stockland – Haven[5] offer tree-lined streets with several pocket parks and easy proximity to Altona beach. Two- three- and four-bedroom townhouses are available here, with the latter priced from $939,000.
And in the city’s north-west, Carrick Lane Residences[6] in Strathmore has a three-bedroom offering that comes in at $899,000 for a generously sized home of 171sqm.
In Brisbane’s Albany Creek, the boutique townhome development Alba[7] has options that sit under the $1 million limit for Brisbane buyers, with three-bedroom town homes selling from $959,000.
A resort-style pool, BBQ area and landscaped grounds provide added amenity for residents who might want some of the features of a detached house, but without the maintenance.
Alba in Albany Creek has shared amenities such as a pool, BBQ area and landscaped ground. Image: realestate.com.au
And in Adelaide’s waterside suburb of West Lakes[8], a new development that has been underway for two years now is coming to life at an old SA Water site, with the 17ha area eventually slated to host almost 500 homes.
The townhomes in the development range from two- to four-bedrooms, with two-bedroom designs sitting under Adelaide’s $900,000 price cap, starting at $759,000.
Are you interested in buying a brand-new townhome? Check out our dedicated New Homes[9] section.
References
- ^ 5% deposit scheme (www.mortgagechoice.com.au)
- ^ brand-new build (www.realestate.com.au)
- ^ latest figures from the Australian Bureau of Statistics (www.realestate.com.au)
- ^ Ed.Square (www.realestate.com.au)
- ^ Stockland – Haven (www.realestate.com.au)
- ^ Carrick Lane Residences (www.realestate.com.au)
- ^ Alba (www.realestate.com.au)
- ^ West Lakes (www.realestate.com.au)
- ^ New Homes (www.realestate.com.au)