What to Look for in a Granny Flat Builder in Melbourne
Melbourne granny flats fall under two very different planning classifications - Dependent Persons Unit (DPU) and Secondary Dwelling. The vetting questions that matter: which classification the builder specialises in, how they handle the service split from the main dwelling, and their track record on Planning Permit approvals.
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DPU cap
60m²
floor area, dependent only
Secondary Dwelling
60m²
2023 reform, permanent + lettable
Cost band
$95k-$180k
turnkey 2026
Duration
4-8 months
permit to Occupancy Permit
The vetting checklist that applies to every Melbourne specialist
BuildPilot does not yet match Melbourne builders. Until we do, this is the vetting method we would use ourselves. The first five checks below are specialist-specific; the rest are the core VBA + VMIA + ASIC checks that apply to every domestic builder working in Victoria.
- Ask whether they primarily deliver DPU (dependent relative only, temporary) or Secondary Dwelling (2023 reform, permanent, lettable) - the classification changes the planning pathway
- Ask how they handle service split - separate sub-meters vs shared meters with main dwelling - relevant for tenancy Bond and utility billing
- Ask their track record on Planning Permit approvals in your specific council (Yarra, Bayside, Boroondara etc all treat DPU/SD differently)
- Ask if they include the main-dwelling floor-plan lodgement (many councils require full site plan including existing dwelling)
- Verify current VBA registration and category on the public register at vba.vic.gov.au/practitioners/register
- Verify no active or recent disciplinary decisions on the VBA disciplinary decisions list
- Confirm Domestic Building Insurance (DBI) will be issued in the builder's name for your contract price under VMIA (all residential work over $16,000)
- Search the ABN on abr.business.gov.au - name, GST status, date of registration
- Confirm the entity is not under external administration on the ASIC register
DPU vs Secondary Dwelling classification
A DPU (Dependent Persons Unit, exemption under Clause 74) is only occupiable by a dependent relative of the main-dwelling occupant. Once the dependent moves out, the DPU must be removed or converted. It cannot be rented commercially. Secondary Dwelling (2023 planning reform) can be permanently occupied by anyone including tenants, and can be rented on the open market. Both are capped at 60m² and require a Planning Permit in most Melbourne councils, though the SD pathway is deliberately faster.
The four red flags that end the conversation
These four signals correlate strongly with builders who have failed or entered administration in Victoria in the last three years. Any of them = walk away.
- Requested deposit exceeds 10% of contract value (Victorian DBC Act caps deposits at 5%)
- Vague or evasive answer on DBI eligibility for your specific contract price
- Refusal to name the Registered Building Surveyor or to let you speak to them independently
- Aggressive time-limited discount contingent on paying deposit before you have read the contract


In this episode we explain to you why site costs are so confusing and why they may vary from builder to builder. We explain the inclusions and exclusions, how builders price site costs and also help you understand the role an engineer plays in the process too. A short episode, but a valuable one so be sure to listen in.
Watch full episodeFrequently asked
Can I rent out a granny flat in Melbourne?+
Only if classified as a Secondary Dwelling under 2023 planning reforms. A DPU cannot be rented - it is dependent-relative only. Confirm the planning class before you sign a build contract.
Do I need a separate title for a Melbourne granny flat?+
No. Both DPU and Secondary Dwelling sit on the same title as the main dwelling. Subdividing (creating a separate title) is a different Planning process (typically Clause 55 dual occupancy).
How much does a Melbourne granny flat cost in 2026?+
$95,000-$180,000 turnkey for 40-60m² depending on inclusions and site access. Add $10-20k if services are far from the main dwelling.
What is the Melbourne granny flat approval timeline?+
3-4 months for the Planning Permit (longer in Boroondara, Stonnington, Port Phillip due to caseload), then 4-6 months for construction. Total 7-10 months from initial application.
Note: the stories below are Adelaide-based clients - the underlying builder-matching process is identical for Melbourne buyers.
How our process runs - real client stories
Federuzzi Development
Two double-garage homes squeezed onto an odd-shaped subdivision block in Ingle Farm, with the equity earmarked to fund the next development.
Read the case studySterai Residence
A practical, well-planned knockdown rebuild on a tricky triangular block in Ingle Farm.
Read the case studyBuilding in Adelaide instead?
Read our Adelaide equivalent