Understanding the true cost to build a granny flat in Melbourne requires looking beyond headline prices. Many builders advertise $150,000-$180,000 base rates, then add $40,000-$80,000 in “necessary extras.” Moreover, this guide provides complete transparency about what you’ll actually pay, what’s included at each price point, and how to compare quotes accurately.
We’ll break down real 2026 granny flat cost Melbourne pricing from $190,000 to $255,000, reveal hidden costs other builders charge extra, compare our packages against competitors, and show you exactly what separates quality builds from budget options.
Real Cost to Build a Granny Flat in Melbourne: $190k-$255k Breakdown
Melbourne’s granny flat market shows significant granny flat price variation depending on quality, inclusions, and builder transparency. Here’s what you’ll actually pay in 2026:
| Package Level | Price Range | Typical Size | What You Get | Best For |
|---|---|---|---|---|
| DIY Flat Pack | $80k-$120k | 40-50m² | Materials only, self-assembly | Handy DIYers with time |
| Budget Prefab | $140k-$180k | 45-55m² | Basic finishes, minimal inclusions | Tight budgets |
| Affordable Signature | $190k | 50-55m² | Quality finishes, complete turnkey | Value seekers |
| Affordable Luxe | $205k | 50-55m² | Premium finishes, enhanced spec | Affordable premium |
| Signature (60m²) | $220k | 60m² | 2 bed, premium inclusions | Most popular |
| Luxe (60m²) | $255k | 60-70m² | High-end finishes, smart home | Quality focused |
| Custom builds | $280k-$400k+ | 60-80m²+ | Variable specifications | Unique requirements |
Our Complete Pricing Promise
When we quote $190,000, $205,000, $220,000, or $255,000, that’s what you pay. No hidden extras. Consequently, every inclusion spelled out upfront:
- Complete architectural design and engineering
- Council or CDC application and fees
- Site preparation and groundworks
- Full construction (structure, roof, windows, doors)
- Complete plumbing, electrical, and gas connections
- Kitchen with stone benchtops and quality appliances
- Bathroom with quality fixtures and floor-to-ceiling tiles
- Floor coverings throughout
- Internal and external painting
- Basic or premium landscaping (depending on package)
- All service connections
- Final inspections and certification
Melbourne Market Pricing by Location
| Location | Council Fees | Labour Rates | Access Issues | Our Pricing |
|---|---|---|---|---|
| Inner (0-20km) | $4k-$6k | +5-10% premium | Crane often needed (+$3k-$8k) | Fixed rate |
| Middle (20-40km) | $2.5k-$4k | Standard | Better access | Fixed rate |
| Outer (40km+) | $2k-$3.5k | Some travel fees | Generally easy | No distance surcharges |
We serve Melbourne’s 50-150km radius at fixed pricing regardless of location within that range.
What Affects the Cost When You Build a Granny Flat?
Multiple factors influence final costs to build a granny flat in Melbourne. Understanding these variables helps you budget accurately.
Site Conditions
Ground Level: Level sites cost less to prepare than sloping blocks. Slopes exceeding 1:10 gradient require retaining walls or elevated construction, adding $8,000-$25,000 depending on severity.
Soil Quality: Melbourne’s reactive clay soils need engineered footings costing $8,000-$15,000. Rocky ground or poor soil conditions add $5,000-$15,000 for deeper footings or pier systems.
Site Access: Wide side access (4+ metres) allows easy delivery. Narrow access (under 3 metres) may require crane installation for prefab builds, adding $3,000-$8,000.
Existing Services: Properties with water, sewer, and electricity within 15 metres keep connection costs minimal. Long service runs (30+ metres) add $5,000-$15,000.
Size and Layout
Floor Area: Larger granny flats cost more total but less per square metre due to fixed costs spreading across more area.
| Size | Cost Range | Cost Per m² |
|---|---|---|
| 40-45m² (1 bed) | $160k-$190k | $3,555-$4,222 |
| 50-55m² (1-2 bed) | $190k-$220k | $3,636-$4,000 |
| 60m² (2 bed) | $220k-$255k | $3,667-$4,250 |
| 70m²+ (2 bed + study) | $255k-$320k | $3,643-$4,571 |
Bedroom Configuration: Two-bedroom layouts add minimal cost over one-bedroom ($5,000-$10,000) but significantly increase rental appeal and property value. Learn more about 60m² designs.
Quality Level and Finishes
Kitchen Specifications: Laminate benchtops (budget), 20mm stone benchtops (our standard), 40mm waterfall stone (our Luxe packages). Cost difference: $4,000-$8,000 between levels.
Bathroom Quality: Half-height tiles and basic fixtures (budget), floor-to-ceiling tiles with quality tapware (our standard), premium porcelain and designer fixtures (our Luxe). Cost difference: $3,000-$7,000 between levels.
Flooring: Vinyl plank (budget), hybrid flooring (our Affordable and Signature), engineered timber (our Luxe). Cost difference: $2,500-$6,000 between levels.
Appliances: No-name budget brands save $2,000-$4,000. Quality brands (our standard) balance value. Premium (Bosch/Miele in Luxe) add $3,000-$5,000.
Council and Approval Costs
CDC Fast-Track: $2,500-$5,000 for eligible Melbourne councils. Faster approval (4-8 weeks) but requires meeting specific criteria.
Standard Planning Permit: $3,000-$8,000 for complex applications. Heritage overlays, vegetation protection, or non-compliant setbacks require detailed applications.
All approval costs included in our pricing. No owner responsibility.
Our Four Package Options
Affordable Signature: $190k
Specifications: 50-55m² | 1-2 bed | 1 bath | Steel frame | Stone benchtops | Hybrid flooring | Split system air con | Basic landscaping
What’s Included: Everything listed in our complete pricing promise. Quality construction without budget compromises. Perfect entry point under $200,000.
Who it suits: Budget-conscious buyers seeking quality. Achieves $380-$450 weekly rent in middle-ring Melbourne suburbs.
Affordable Luxe: $205k
Specifications: 50-55m² | 1-2 bed | 1 bath | Enhanced finishes | Premium fixtures | Better appliances | Improved landscaping
Upgrade from Affordable Signature: Higher-grade finishes, better appliances, enhanced bathroom fixtures, premium landscaping.
Who it suits: Buyers wanting premium feel without stepping up to 60m² size. Quality-focused on tighter budgets.
Signature (60m²): $220k – Most Popular
Specifications: 60m² | 2 bed | 1 bath | 20mm premium stone | 900mm cooktop | Dishwasher | Hybrid flooring throughout | Enhanced landscaping
Why buyers choose this: Optimal size for families and renters. Two bedrooms accommodate diverse needs. Achieves $480-$550 weekly rent.
Competitive advantage: Competitors charge $280,000-$320,000 for equivalent specifications. Our $220,000 pricing delivers exceptional value.
Luxe (60m²): $255k
Specifications: 60-70m² | 2 bed | 1 bath | 40mm waterfall stone | Bosch/Miele appliances | Engineered timber floors | Ducted heating/cooling | Smart home integration | Premium landscaping
Premium features: Designer kitchen with 40mm stone benchtops and waterfall edge, premium appliances (Bosch or Miele), engineered timber flooring, ducted climate control, smart home technology, premium landscaping with irrigation.
Value comparison: Competitors’ premium packages cost $350,000-$400,000. Our Luxe saves $95,000-$145,000 for equivalent or better specifications.
Hidden Costs Other Granny Flat Builders Don’t Tell You
Melbourne granny flat builders often advertise attractive base prices, then add substantial costs during the process. Here’s what gets charged extra:
| Item | Competitors Charge | Innovista |
|---|---|---|
| Architectural design | $6k-$10k | Included ✓ |
| Engineering | $3k-$5k | Included ✓ |
| Council/CDC fees | $2.5k-$6k | Included ✓ |
| Site preparation | $5k-$18k | Included ✓ |
| Stone benchtops | $4k-$7k | Standard ✓ |
| Quality appliances | $4k-$8k | Included ✓ |
| Window furnishings | $2k-$4k | Included ✓ |
| Landscaping | $3k-$6k | Included ✓ |
| Service connections | $4k-$10k | Included ✓ |
| Project management | $5k-$10k | Included ✓ |
| Total Hidden Costs | $38.5k-$84k | $0 |
Learn more about what’s actually included in quality packages.
Questions to Ask Before Signing
Protect yourself from hidden costs:
- What’s included in this price versus charged extra?
- Who pays council and approval fees?
- Are appliances and stone benchtops included or extra?
- Does pricing include site preparation and service connections?
- Is landscaping included or additional?
- Are there project management or supervision fees?
- What variations typically arise during construction?
Reputable builders answer these questions directly with detailed written documentation.
Comparing Quotes: Why Our $220k Beats Competitors’ $300k+
Direct comparison reveals our competitive advantage:
Garden Studios “Bespoke” Package:
- Advertised: $280,000+
- Laminate benchtops (stone costs $6,000 extra)
- Budget appliances
- No landscaping
- Design fees: $8,000-$10,000 extra
- Total: $300,000-$310,000
Granny Flats Australia “Premium”:
- Advertised: $295,000
- 20mm stone (included)
- Mid-range appliances
- Soft-close upgrade: $2,500 extra
- Owner pays council fees: $3,000-$5,000
- Total: $305,000-$315,000
Innovista Signature (60m²):
- Complete price: $220,000
- 20mm premium stone (included)
- Quality appliances (included)
- Soft-close cabinetry (standard)
- All fees (included)
- Landscaping (included)
- Value advantage: $80,000-$95,000 savings
We achieve better pricing through factory efficiency, volume purchasing, streamlined processes, and transparent business model without hidden margins.
Cheap Granny Flats vs Premium: The Long-Term Cost Difference
Budget cheap granny flats under $150,000 seem attractive initially but often cost more long-term through maintenance, repairs, and lost rental income.
True Cost Over 10 Years
| Factor | Budget Build | Quality Build | Difference |
|---|---|---|---|
| Initial cost | $150k | $220k | +$70k |
| Maintenance (10yr) | $15k-$25k | $8k-$12k | -$7k-$13k |
| Repairs/replacements | $10k-$20k | $3k-$6k | -$7k-$14k |
| Rent differential | -$50/week | Benchmark | -$26k (10yr) |
| Higher vacancy | +3 weeks/year | Benchmark | -$7.8k (10yr) |
| Property value added | +$60k-$80k | +$90k-$120k | -$30k-$40k |
| Net 10-Year Position | $138k-$175k | $220k invest | Quality wins |
Budget build’s initial $70,000 saving disappears within 10 years through higher costs and lower returns. Quality builds deliver better long-term value. Learn about why cheap granny flats cost more.
Financing Options to Build a Granny Flat in Melbourne
Financing Disclaimer: Lending information is general education only, not financial advice. Lending varies significantly between lenders. Consult mortgage brokers and banking professionals for guidance specific to your circumstances.
Most Melbourne property owners finance granny flat construction through these options:
Refinance Existing Mortgage: Access equity from your property. Typically lowest interest rates (4.5-6.5%). Requires 20%+ equity remaining after refinance. Single consolidated loan simplicity.
Construction Loan: Progressive draw-downs aligned with build stages. Interest only on released funds. Slightly higher rates but staged payment protection.
Personal Loan: Unsecured lending for smaller builds. Higher rates (7-12%) but faster approval. Suitable when property equity unavailable.
Typical Loan Amounts:
- $190k build: $38k deposit (20%), borrow $152k = $760/month (6% interest-only)
- $220k build: $44k deposit, borrow $176k = $880/month
- $255k build: $51k deposit, borrow $204k = $1,020/month
Build Timeline: What to Expect When You Build with Innovista
Understanding realistic timelines helps you plan effectively.
Total Duration: 12-20 weeks from contract signing to handover
| Phase | Duration | What Happens |
|---|---|---|
| Design and approvals | 4-10 weeks | Floor plan confirmation, CDC or planning permit |
| Site preparation | 1-2 weeks | Ground leveling, footings, service connections |
| Factory construction | 6-8 weeks | Granny flat built in controlled environment |
| Delivery and installation | 3-5 days | Crane delivery, module placement, connections |
| Finishing trades | 2-3 weeks | Final connections, fit-out, landscaping |
| Final inspections | 1 week | Building inspector, council, certification |
Timeline Variables: CDC-eligible properties (4-8 weeks approval) versus planning permits (12-20 weeks). Level sites versus sloping blocks requiring retaining. Standard packages versus custom modifications.
Our prefabricated approach eliminates weather delays. Site-built alternatives take 20-32 weeks minimum with weather impacts.
Conclusion
Building a granny flat in Melbourne costs $190,000-$255,000 for quality turnkey construction with complete inclusions. Budget builds under $180,000 typically involve hidden costs or quality compromises that prove expensive long-term. Luxury custom options exceed $350,000 for unique requirements.
Our packages include everything needed: design, approvals, construction, quality finishes, appliances, landscaping, and all connections. One price. No hidden extras. No surprise variations.
Ready to get accurate pricing for your specific Melbourne property? Contact Innovista Group for detailed pricing information. Additionally, request your free site assessment including site-specific costs, council requirements, and timeline estimates for complete transparency about how much does a granny flat cost to build on your property.
