Is this block too narrow to build in back?

Anything inner city (Sydney) is quite often less than 6 m wide - the 25 m frontage is a real bonus. Not sure of the requirements in Vic but with that sort of frontage you might get the equivalent of over 55's housing (villas/units) with a bit of excavation for a basement carpark (if allowable/feasible - no driveway losses to worry about either).
 
Res 1, no overlays... good start. There are certainly units and infill development in the local area, although fairly modest.

Roughly 220m2 or so of development land at the rear of the site if the OP were to keep the house with a 5m deep clear to sky backyard.

Aerial below...
https://www.dropbox.com/s/nx8y4nv3ivfjq5b/MarciaSt.jpg

Interested to know if this information changes anyones mind?
 
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Res 1, no overlays... good start. There are certainly units and infill development in the local area, although fairly modest.

Roughly 220m2 or so of development land at the rear of the site if the OP were to keep the house with a 5m deep clear to sky backyard.

Aerial below...
https://www.dropbox.com/s/nx8y4nv3ivfjq5b/MarciaSt.jpg

Interested to know if this information changes anyones mind?

Thanks so much for this. It keeps the property in the mix for us. We have a few others we're looking at and this one was attractive as it's so cheap. But we've found another on 1130sqm, albeit sloping land. Hard to know what is the best decision but thanks for taking the time to answer!
 
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