What To Look For In A Granny Flat Builder Melbourne

For Melbourne home buyers

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.

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

Frequently 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.

Building in Adelaide instead?

Read our Adelaide equivalent

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