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.
By George Giannakakis · B.Arch.Studies · M.Arch (UniSA) · RLA300580
Last reviewed: · How we research
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.
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