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Why Horizontal Developments Are Gaining Popularity in Melbourne

By Coposit
10/09/2025

Melbourne’s property market is evolving, and one of the latest trends reshaping the landscape is horizontal development. Unlike traditional high-rise apartments, horizontal developments focus on low-rise, spread-out housing solutions that balance density with lifestyle. Buyers and investors are increasingly drawn to this approach for its liveability, affordability, and design flexibility.

What Are Horizontal Developments?

Horizontal developments are residential projects that prioritise low-rise buildings, townhouses, and spread-out communities rather than tall towers. They often feature:

  • Two to four storey buildings
  • Wider communal spaces
  • More natural light and ventilation
  • A stronger focus on suburban living within metro areas

This model offers a middle ground between detached houses and vertical high-rise apartments.

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Why Melbourne Buyers Prefer Horizontal Living

Lifestyle is a key driver of this shift. Families, first home buyers, and downsizers are showing interest in homes that provide space without the isolation of suburban sprawl. Horizontal developments offer:

  • More private outdoor areas such as courtyards and terraces
  • Access to green communal zones
  • Lower population density compared to towers
  • A design that feels more like a community

These features align with Melbourne’s culture of valuing both space and community living.

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Affordability and Accessibility

With rising property prices in Melbourne, horizontal developments provide a more affordable option than detached homes while offering more liveability than high-rise apartments. Townhouses and low-rise projects allow developers to maximise land use while keeping prices within reach for first home buyers and young families. For investors, these properties often deliver solid yields due to strong tenant demand.

Sustainability and Design Benefits

Horizontal developments also reflect the growing focus on sustainable living. Developers are incorporating:

  • Energy-efficient appliances
  • Solar panel systems
  • Cross-ventilation designs
  • Shared green spaces that reduce environmental impact

These design choices not only appeal to eco-conscious buyers but also reduce long-term running costs, boosting overall property value.

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The Investor Advantage

From an investment perspective, horizontal developments in Melbourne combine the stability of residential housing with the density benefits of urban design. They often attract a wide tenant base, from students to families, thanks to their mix of affordability, location, and lifestyle appeal. Strong rental demand helps ensure consistent ROI.

How Coposit Supports Buyers in Horizontal Developments

For many buyers, the challenge lies in affording deposits for these new properties. This is where Coposit helps. With Coposit, you can secure your property with just a $10,000 deposit and pay the remainder in manageable weekly instalments. This makes horizontal developments more accessible to first home buyers and investors who want to enter Melbourne’s competitive property market.

Horizontal Developments: A Growing Trend in Melbourne’s Market

The rise of horizontal developments reflects Melbourne’s demand for housing that balances affordability, lifestyle, and sustainability. As more developers embrace this model, buyers and investors will find opportunities that offer both strong liveability and reliable returns.

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