Habitat on Terrace is an exercise in densification of the inner city suburban site while respecting the local context. It attempts to form an example of how a development project can respond to the character of the Queensland vernacular through its contemporary interpretation. Design principles and site strategy take queues from its immediate context, namely an existing Queenslander on the site. Yielding five freehold dwellings on a mere 760m2 site, the compact footprint relies on height which it borrows from the adjacent unit block. Verticality becomes a central design element in ordering and connecting the program. The result is a contemporary, three-storey, interpretation of the traditional Queensland house, which is supported by the local code. Living spaces extend into the landscape through the use of full height bifold doors, which genuinely connect the inside and outside. The result is a series of compact subtropical homes, which feel generous.