VIC Please help... Melb Outer Eastern Suburb land with Design and Development Overlay (DDO)

Hi everyone, new to this forum (as one of my friends told me about). I am amazed by the topics and helps that people get here. You are all awesome! Hope someone can give me some ideas, really confused myself.

As suggested by my title, My partner and I are in the process of buying our next investment property in outer eastern suburb in Melb. However, I noticed that this property is in NRZ 2 (Neighborhood Zone) and also has an extra Design and Development Overlay. I am a bit worried, just wondering is this going to be a problem down the track? This land size is 815m2. It has an existing old 1970 building on it. I don't think we will subdivide it at this stage, however, just wondering would this affect our selling price for the future? Or this can be good, as the whole street is restricted to this overlay too. Is that means no oversupply townhouses etc in the area, so the house will stay relatively healthy for growth? Any thoughts would be much appreciated.

And slightly off the topic, our budget is between $700k to $750k, as we live around Eastern Suburbs, so ideally we are looking around Eastern Suburbs for Townhouse or house. Any suggestion under current market conditions? Area or type of the property etc? We do know the region well, however, we are really not sure how this current property market is heading. Should we buy a townhouse a bit inner suburbs for a better rental yield and stable growth or outer suburbs with much more of land (with potential), but with average rent and older type of property?

Thanks guys, I know I have hundreds of questions here, please welcome to contribute whatever the questions you would like to talk about, thanks in advance