Roots Homes

How much does it cost to build a granny flat in Melbourne?

The cost of building a granny flat in Melbourne depends on size, finishes, and site conditions. A studio granny flat generally starts from around $85,000, while a 1-bedroom design is often between $100,000 and $150,000. For larger 2-bedroom layouts with premium inclusions, costs may range up to $250,000. Factors such as soil type, access to the site, and service connections (water, power, sewer) can also affect the price. Choosing a turnkey builder means you’ll get a fixed, transparent cost before construction begins.

Do I need a planning permit for a granny flat in Victoria?

In most residential zones across Victoria, you no longer need a planning permit for a granny flat under 60m², provided it meets ResCode requirements for setbacks and sits on the same lot as the main dwelling. However, overlays like Bushfire Management, Heritage, or Significant Landscape can still trigger a planning permit requirement. In those cases, additional assessments such as BAL ratings may apply. It’s important to check your property before you begin, as permit delays can add months to a project if overlooked.

What size granny flat can I build on my block?

Victorian regulations allow granny flats (secondary dwellings) up to 60m² in size, provided there is an existing main dwelling on the lot. Larger designs may be possible with additional approvals.

How long does it take to build a granny flat from start to finish?

Most granny flats by Roots Homes in Melbourne can be completed within 8-12 weeks once approvals are in place, though timing can vary depending on site conditions and design complexity.

Are granny flats a good investment in Melbourne’s property market?

Yes, granny flats are increasingly considered a smart investment in Melbourne. They offer dual benefits: ongoing rental income and a boost to property value. A 1-bedroom granny flat can return $300–$500 per week in rental income, while a 2-bedroom unit can achieve even higher returns depending on location. At the same time, buyers see granny flats as versatile, future-ready spaces — making your property more appealing if you decide to sell. With rising housing demand, granny flats have become one of the most cost-effective ways to maximise the value of your land.

Can I rent out my granny flat on Airbnb or as a long-term rental?

Yes, granny flats can be used for both Airbnb and long-term rentals, and many Melbourne homeowners use them as a reliable income source. A self-contained unit with its own entrance, kitchen, and bathroom is highly attractive to tenants or travellers looking for privacy and affordability. Long-term rentals offer steady income, while Airbnb can deliver higher nightly rates in the right location. Always check local council guidelines and ensure your granny flat is built to the correct safety and compliance standards before renting it out.

What is included in a standard granny flat design package?

Standard granny flat packages include a full kitchen, bathroom, living area, bedroom, and internal finishes. Upgrades such as premium fixtures, cladding, and outdoor decks can be added to suit your preferences.

Do granny flats in Melbourne need to meet the new 7-star energy rating?

Yes. From 2023, all new granny flats in Victoria must meet a 7-star NatHERS energy rating, which ensures efficiency, comfort, and lower running costs.