sydney's missing middle

The $210,000-a-Box Answer to Sydney’s Missing Middle

sydney's missing middle

Australia’s housing conversation tends to swing between two extremes: detached houses on the fringe and high-rise towers in the city. The homes in between have been the hardest to get built. Those are the townhouses, terraces and small apartment buildings that make up Sydney’s missing middle.

We were proud to see our parent group, Uncommon Living, featured in The Urban Developer this week. Co-founders Michael Drage and Charles Peters spoke about how prefabrication could make Sydney’s missing middle viable again.

Why Sydney’s Missing Middle Stalled

The housing slump of recent years hit smaller apartment projects hardest, and Sydney’s missing middle has felt it more than most. These developments carry many of the same costs and risks as large towers, without the scale to absorb them.

Charles Peters, an architect with more than 20 years’ experience, put it simply:

“With Class 2, so much of the cost is in the cost of the site, the time it takes you to build it, the number of people it takes to build, the complexity in that, and also the quality control.”

Every extra month on site, every extra trade and every extra layer of complexity ends up in the final price of a home. It’s a big reason so few of these projects get off the ground.

The Numbers That Got People Talking

Uncommon Living recently submitted a proposal for 15 apartments at 50 Harnett Street, Marrickville, on a compact 390 square metre site in Sydney’s Inner West. The proposed build cost is $210,000 per box.

For comparison, the Centre for International Economics estimated that a mid-rise infill apartment in Sydney cost $1.05 million to deliver in 2025.

The two figures don’t measure exactly the same thing. Still, the gap shows how much of the cost sits in how we build, not just what we build. If those savings hold up, they could change the economics of Sydney’s missing middle.

Less in the Ground, Less Disruption

One of the biggest savings in the Uncommon model is simple: no basements.

Excavation is slow, expensive and disruptive for neighbours. Leaving it out cuts cost and time, and it reduces the impact on the street. That matters a lot on the tight infill sites that make up much of Sydney’s missing middle. In Marrickville, the neighbours are only metres away.

Built in a Factory, Refined Over Decades

Uncommon Living has partnered with a Polish group that has specialised in prefabricated buildings for 35 years. Michael Drage explained why that experience matters:

“When you’ve got a company that or a partner has been doing it for 30-odd years, you iron out a lot of those kinks.”

Building components in a controlled factory means consistent quality, wherever the home ends up. Less work on site means fewer weather delays and fewer chances for mistakes. The team is aiming to cut construction timeframes by 50 per cent on missing middle projects.

Where This Connects to Passive House

This is the same thinking behind everything we do at Reimagined Habitat. Michael came to sustainable design after 25 years in investment and landed on Passive House as “the clear answer to so many questions in the industry.”

Prefabrication and Passive House suit each other well. Precision-made panels make it much easier to get airtightness, continuous insulation and thermal-bridge-free detailing right. Together, they could set a new standard for Sydney’s missing middle. Across the Uncommon Living group:

  • Net Zero Plus supplies prefabricated panelised building systems and high-performance European glazing
  • Efficient Habitat handles ESD consulting and certification
  • Reimagined Habitat designs healthy, high-performance homes, from new builds to deep retrofits

Better homes shouldn’t be a luxury. If we can build them faster, with less waste and at a lower cost, Sydney’s missing middle might finally start to fill in.

Listen: Sydney’s Missing Middle on The Urban Developer Podcast

Want to hear it straight from the source? Patrick Lau from The Urban Developer sat down with Michael and Charles to talk about how prefab could help solve Sydney’s missing middle.

They cover the Marrickville proposal, the Polish partnership and what it takes to bring build costs down without cutting corners.

The full episode is available on Spotify, Apple Music, and YouTube. So, grab a coffee, hit play, and let us know what you think.

Thinking About a High-Performance Home?

Whether you’re planning a new build, a deep retrofit, or a small multi-residential project that adds to Sydney’s missing middle, our team can help you design a home that’s comfortable, efficient and built to last. Get in touch!