Box Hill Townhouse: How One Family Turned a Single Block Into Four Homes

In 2023, the Chen family owned a 1960s fibro home on a 900m² block in Box Hill — one of Melbourne's most sought-after growth corridors. Their parents had bought the block in 1989 for $85,000. By the time they started planning, the land alone was worth $1.4 million.

The Initial Question

James Chen, the eldest son, posed the question that started everything: "We could renovate, we could sell, or we could build. But what if we built four townhouses?" It took a year of planning to find out whether that was even possible.

The Zoning Check

Box Hill falls within the City of Whitehorse. A town planner confirmed the block was zoned General Residential Zone Schedule 1 (GRZ1), which allows medium-density development with council permission. The 900m² size — well above Whitehorse's 250m² minimum per dwelling for townhouses — made four dwellings viable in principle.

However, the block had a significant challenge: a 3-metre easement along the rear boundary and a protected native tree near the centre, which an arborist assessed as having a 6-metre Tree Protection Zone.

The Design Process

Working with a local architect experienced in Whitehorse, the Chens spent five months developing plans that worked around the tree and easement. The final design: four 3-bedroom, 2.5-bathroom townhouses arranged in a U-shape, with shared visitor parking at the front.

Total gross floor area per townhouse: 180m². Each with a private courtyard, single garage, and storage.

The Numbers

Item	Cost
Town planner & architect	$65,000
Planning permit (DA)	$8,200
Demolition	$48,000
Construction (4 townhouses)	$1,940,000
Landscaping & fencing	$62,000
Strata titling (4 lots)	$42,000
Finance costs (construction loan)	$89,000
Contingency used	$67,000
Total project cost	$2,321,200

Add land value ($1.4M) and total cost is $3.72M. Final valuations on completion (mid-2025): each townhouse valued at $1.05M = $4.2M total. Equity created: approximately $480,000.

What Took Longest

The planning permit took 11 months — significantly longer than the 60-day expectation. An objection from a neighbour about overlooking triggered a revised design and an additional two months of council review. The tree protection zone also required an arborist report at multiple stages.

"We thought 6 months, it took 11. That was the biggest surprise," James said. "But once we got the permit, the build itself went relatively smoothly."

What They'd Do Differently

• Commission the geotechnical report earlier. They discovered reactive clay soil during excavation, requiring a more expensive raft slab. Cost: additional $34,000.
• Communicate with the neighbours before lodging. The objection from next door was a surprise and could likely have been avoided with early conversation and design adjustments.
• Lock in the builder earlier. Their preferred builder was fully booked; they waited 6 months for a slot to open up. That was 6 months of holding costs on the loan.

The Outcome

The family retained two townhouses (one for James, one for his parents) and sold two. The sale of those two units — at $1.05M each — effectively paid for the entire project, leaving the family with two debt-free properties valued at $2.1M combined.

"We started with one old house worth $1.4M including land. We ended up with two new townhouses worth $2.1M, debt-free. That's what good planning can do." — James Chen