If you own a townhouse, apartment or unit in Melbourne, you have likely come across the term “strata title” or “owners corporation.” And if you have ever looked into building a granny flat on that property, you have probably run into a frustrating lack of clear answers.
The question — can you build a granny flat on a strata title Melbourne property — is one of the most commonly asked and least clearly answered questions in the secondary dwelling space. This guide gives you a straight answer, explains why the rules work the way they do and points you toward the options that are actually available to you.
What Is a Strata Title?
A strata title is a form of property ownership where an individual owns a specific lot — typically an apartment, townhouse or unit — within a larger scheme. The lot owner holds title to their individual dwelling, while the common property is owned collectively by all lot owners through an owners corporation.
In Melbourne, strata title properties are common across inner and middle suburbs, particularly in developments built from the 1960s onwards.
Can You Build a Granny Flat on a Strata Title Property?
In most cases, no — at least not in the way most homeowners envision.
Victoria’s secondary dwelling provisions allow homeowners to build a self-contained dwelling on the same title as their primary residence. The critical word here is title. A secondary dwelling must be on the same lot of land as the primary dwelling, and the land must be a single title in freehold ownership.
On a strata title property, your lot is typically defined by the walls, floors and ceilings of your apartment or townhouse. You do not individually own the land beneath your building or the garden areas around it. Those areas form part of the common property owned collectively by the owners corporation.
This means you cannot build a secondary dwelling in the backyard of a strata title townhouse in Victoria, because that backyard is common property — not your lot.
If you have discovered an unapproved structure on a strata property you are purchasing, the strata title complication is one of the reasons those situations can become complex quickly.
Are There Any Exceptions?
There are a small number of situations where a secondary dwelling on or near a strata title property may be possible.
Freehold townhouse with body corporate. Some Melbourne townhouses look and feel like strata title but are actually on individual freehold titles with a body corporate arrangement for shared costs. If your townhouse sits on its own freehold title with its own land parcel, you may be eligible to build a secondary dwelling — subject to the standard secondary dwelling requirements and any restrictive covenants on the title.
Company title. Some older Melbourne properties operate under a company title structure rather than strata. Company title arrangements vary significantly, and whether a secondary dwelling is possible depends on the specific constitution of the company and what the exclusive use area covers.
The most reliable way to determine which category your property falls into is a title search and review by a qualified conveyancer or property solicitor.
What Are Your Options If You Own a Strata Property?
Check your title type. Confirm with a conveyancer whether your property is strata, stratum, company title or freehold with a body corporate. This single step determines everything else.
Consider purchasing a freehold property. If building a secondary dwelling is a genuine priority, purchasing a standard freehold residential property with a full land title gives you the straightforward pathway that strata title does not.
Understand your minimum block size requirements for when you are ready to proceed on a freehold property, so you know exactly what to look for.
If You Do Have a Freehold Property, Here Is What Comes Next
If you have confirmed your property is on a freehold title and you want to explore building a G-Flat™, the next step is a site assessment. You can also read what other Melbourne homeowners say about their experience with Innovista before you take the next step, and explore the full G-Flat™ range to see which floor plan and finish suits your situation.