Granny Flat Builders Melbourne

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Independent Melbourne Guide

Granny Flat Builders Melbourne

Real 2026 Melbourne pricing, Victoria's secondary-dwelling rules, and how to check if your Melbourne block can even fit a granny flat.

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George Giannakakis

By George Giannakakis · B.Arch.Studies · M.Arch (UniSA) · RLA300580

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Melbourne granny flats sit under Victoria's Dependent Person's Unit (DPU) and Secondary Dwelling regulations - more restrictive than SA's 2023 rules. Every granny flat needs a planning permit, must be within specific size limits, and often requires a family relationship demonstrated. This guide covers real costs, the planning path, and how to check if your block can even fit a granny flat.

Real all-in cost by scope

Studio (30-40m²): $150,000-$220,000. 1-bedroom (40-55m²): $180,000-$280,000. 2-bedroom (55-75m²): $260,000-$420,000. Premium accessible design: add 15-25%. Concrete slab + services connection: $18,000-$40,000. Council fees + planning permit: $4,500-$12,000. Total decision-to-move-in timeline: 8-14 months.

Can your Melbourne block fit a granny flat?

Rescode site coverage cap: 60% (varies by council). Garden area requirement: 25-35% of lot size (again council-dependent). Setbacks: 3m rear, 1m side minimum. Access to a compliant fire truck path required. Heritage or character overlays often block granny flats entirely. Use VicPlan (mapshare.vic.gov.au) to check overlays BEFORE contract.

The Victorian DPU vs Secondary Dwelling distinction

Dependent Person's Unit (DPU): must be occupied by a dependent relative, removed when they leave. Often faster planning permit path. Secondary Dwelling: independent from main dwelling, can be rented, longer planning process + higher scrutiny. Choose the right classification for your family situation - it materially affects the permit timeline and cost.

Planning permit process

Step 1: check overlays on VicPlan. Step 2: pre-application meeting with your council (recommended, some councils require). Step 3: engage architect/draftsperson for design + planning drawings. Step 4: lodge planning permit application (6-14 weeks). Step 5: after planning granted, lodge building permit (2-6 weeks). Step 6: construction (5-9 months). Budget $6,000-$18,000 in professional fees before you break ground.

Frequently asked questions

Only if it is a Secondary Dwelling (not a DPU). DPUs must house a dependent relative only. Secondary dwellings can be rented but require: separate metering, compliant fire separation, separate mailing address, and often council owner-occupier declarations. Many Melbourne councils cap short-term (Airbnb) rentals separately.

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Building in South Australia? See the Adelaide version of this guide →

Disclaimer: Pricing ranges are Mar 2026 Melbourne market observations and indicative only. Actual costs depend on site conditions, block access, materials and finish level. BuildPilot is an independent home-build CoPilot and does not build or supply. Always obtain three fixed-price quotes on identical inclusions, verify Victorian building licences via Victorian Building Authority and check planning overlays via VicPlan.

What this costs to keep, Victoria

The ongoing numbers

Heat pump hot water
lasts 10-15 yrs · rental: usually the landlord
$3,800 – $7,000
Split system 7kW, back-to-back install
lasts 12-15 yrs · rental: usually the landlord
$3,000 – $4,800
Switchboard upgrade with safety switches
lasts 25+ yrs · rental: usually the landlord
$1,400 – $3,200

Indicative 2026 ranges, not quotes. All 66 items

Rules that apply in 2026
  • 7-star energy rating (NCC 2022)
    Minimum thermal performance for new homes from 2023-24. Insulation, glazing, orientation and sealing.
  • Safety switches (RCDs) on every circuit
    Required on all final sub-circuits in new work and in rentals in both states.
  • Interconnected hardwired smoke alarms
    Photoelectric, interconnected, in every bedroom corridor and level.
  • Livable Housing Design: step-free entry, wider doors, reinforced bathroom walls
    Mandatory for new homes in most states from 2023-24 (not SA at the time of writing).
Score your house against all 17 rules

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