VIC Subdivision in Melbourne inner east

Just wanted to get your thoughts on whether or not you think it would still be profitable to purchase land and do a 2 or 3 lot subdivision & townhouse development in the inner east suburbs in Melbourne? The areas I'm talking about are Balwyn, Balwyn North, Surrey Hills, Mont Albert, Mont Albert North, Camberwell, Canterbury, Kew East. Given the size of the average block in these areas and the new minimum garden area requirements, it doesn't seem like you'd be able to fit 2 let alone 3 decent sized townhouses on a block. Yet I see so many townhouse developments when I drive around so I feel like I must be missing something.

 

It will be difficult to to do traditional townhouses in those areas since land price is so high. Unless you bought the site a long time ago.

These days mostly terrace style townhouses are getting approved for reverse living So they consider balconies as out door space and fitting more units on a block.