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Should You Be Developing Apartments On Your Site?

With the rise of Class 2 developments around Perth, more developers are asking the question, “Should I be building apartments instead of units on my Site?”

Firstly, it is important for readers to understand that Class 2 apartments are not those mammoth apartment complexes many may associate with the term ‘apartments’. Instead Class 2 apartments are smaller buildings (usually two stories) built on sites traditionally developed for units.

While units are separate buildings on the same site, Class 2 apartments allow developers to maximise space by building all dwellings within the one building and stacking one dwelling above another.

The below two images illustrate the difference between building traditional units (a triplex in this case) and Class 2 apartments on the same 800 sqm block. Using Class 2 methods four additional properties can be developed on the same block.

Triplex development example
Image: Example of a triplex development on a 800sqm block. Source: Multi Living Developments
Class 2 example
Image: Example of a Class 2 apartment development on the same 800sqm block. Source: Multi Living Developments

Why apartments?

With the urban sprawl that has been occurring in Perth over the last decade, apartments are now becoming a desirable product for an array of different buyers and renters. Apartments provide significant benefits, including:

Affordable purchase and rent prices

Apartment developments are affordable options for those wanting to be in the center of it all. They also tend to be more affordable than houses. Many younger buyers, particularly first home buyers, don’t see a traditional home as a realistic option anymore and are looking at affordable alternatives to get them into their first property.

Less cleaning and gardening

Our lives in general are becoming busier, and there is a large market out there for singles, couples and small families who do not want the additional work of cleaning a large house and maintaining a garden.


The location of a development block is important when considering apartments, as they tend to attract those who want to be close to the action. Luckily in Perth this doesn’t mean just around the CBD. With hubs in locations like Rockingham, Mandurah, Armadale, Joondalup, Midland and Cockburn, purchasers and renters are happy to live in thriving communities outside the CBD. The key is to be close to public transport, shops, restaurants and other features such as parks, lakes and beaches, which serve as an alternative to a backyard.


With intercoms, gates and other security features, living in an apartment often has it’s safety benefits. Apartments are generally harder to burgle and knowing your neighbours are close by in an emergency situation can be comforting to many people.

So should you be considering a Class 2 development for your block?

We scoured the internet to try and find easy to digest snippets about Class 2 building that would help you answer this question. Thanks to Multi Living Developments, Perth’s Class 2 apartment specialists, we were able to find some videos to help explain Class 2 and it’s benefits to developers.

What are Class 2 apartments?

By definition, Class 2 apartments are one sole occupancy unit directly above another. For example you may have four units in one building with one external door. That door would lead to a foyer which would service four internal doors, one to each of the four units.

VIDEO: Multi Living Developments explain Class 2 developments.

Why choose a Class 2 development?

The greatest advantages for Class 2 developments is evident when the zoning of a developers site is above R40 and the site is positioned close to schools, public transport and shopping hubs.

Class 2 Developments are able to maximise the yield of the living space available using the same R-Codes as traditional development.

There is more end product to sell or to rent using Class 2 construction methods, which potentially will increase the yield on your development.

VIDEO: Multi Living Developments explain the benefits of Class 2 construction for developers.

Who benefits most from building apartments using Class 2 methods?

Class 2 construction is suitable for both owner occupiers and renters. It works for developers looking to sell all the apartments, hold them all for renting or sell some and hold the rest.

The most important consideration is that the final product suits the end buyer/renter for the area you are going to develop in. It is important that Developers do their research before building, to establish who is going to buy their product. The end purchaser will determine the design and specification required for the apartments, to the meet the needs of that buyer.

VIDEO: Multi Living Developments explain which developers benefit most from Class 2 developments.

Ventura Developments and Multi Living Developments offer a free consultation service so you can see if developing is an option for you. Call (08) 9241 1600.