As housing needs evolve in Melbourne, more property owners are exploring secondary dwellings to expand their usable space. Whether it’s for multi-generational living, passive rental income, or creative workspaces, two popular options are often compared: granny flats and garden studios. On the surface, they might seem similar, but the distinctions between them are significant, legally, functionally, and in long-term value.
In this guide, we break down the real differences between a granny flat and a garden studio, helping you determine which option is best for your lifestyle and property goals. We’ll also explore how custom granny flats in Melbourne, like the Lana Series by Innovista Group, offer long-term flexibility and superior functionality.
What Is A Granny Flat?
A granny flat is a self-contained secondary dwelling that is legally recognised by local councils in Victoria. It typically includes:
- A separate bedroom or sleeping area
- A full kitchen and laundry
- A bathroom with a toilet and a shower
- Living and dining space
Granny flats are designed for long-term occupancy and can be legally rented or occupied by family members. Because they qualify as secondary dwellings, they must meet building regulations, energy ratings, and planning controls under the Victorian Building Authority and local council guidelines.
Key Features of a Granny Flat:
- Minimum living space requirement (commonly 43-60m²)
- Fully plumbed kitchen, bathroom, and laundry
- Meets 6 or 7-star energy rating requirements
- Suitable for permanent residence
- Requires planning and building permits
Granny flats like Innovista’s Lana Series are built for long-term durability, comfort, and compliance. With 1 and 2-bedroom options available, they serve as permanent homes for elderly parents, adult children, or tenants.
What Is A Studio Cabin Or Garden Studio?
A garden studio (also referred to as a studio cabin or backyard pod) is a non-habitable structure generally used for:
- Home offices or studios
- Guest accommodation (short-term)
- Hobby spaces or gyms
- Teen retreats or reading nooks
Unlike granny flats, studios are typically not approved for full-time residential occupancy. They may not include a kitchen or fully equipped bathroom, and are often exempt from full planning permits (depending on local rules) if they fall under a specific size threshold.
Key Features of a Garden Studio:
- May be less than 20m² to avoid permit requirements
- No permanent kitchen or laundry
- Limited insulation and thermal control
- Not suitable as a legal rental
- Often used as a detached office or rumpus room
Studios are usually cheaper and faster to build, but they offer limited functionality and don’t contribute to the long-term value of your property in the same way a granny flat does.
Granny Flat vs Garden Studio: Side-by-Side Comparison
Here’s how the two options differ:
Legal status: A granny flat is a permitted secondary dwelling that can be used for permanent living. A garden studio is generally classified as a non-habitable structure.
Kitchen: Granny flats include a full kitchen with appliances, while studios typically lack cooking facilities or only offer a basic kitchenette.
Bathroom: Granny flats feature complete bathrooms with a shower, toilet, and vanity. Studios may not have plumbing or may feature only a powder room.
Occupancy: Granny flats are designed for long-term living. Studios are intended for short-term or occasional use.
Permits required: Granny flats require full building and planning permits. Studios may be exempt if kept under a specified size (e.g., 20m²).
Investment value: A well-built granny flat adds substantial resale and rental value to your property. A garden studio has a limited financial return.
Utilities: Granny flats are plumbed and wired to the same standards as a home. Studios may have basic or no connections.
Customisation: Granny flats, particularly Innovista’s Lana Series, can be fully customised. Studios often rely on prefabricated or kit-set designs.
When Should You Choose A Granny Flat?
If you plan to house elderly parents, young adults, or long-term tenants, a granny flat is your best option. It offers long-term liveability, compliance with building standards, and the flexibility to suit your changing needs over time.
The Lana Series by Innovista Group is a leading example of custom granny flats in Melbourne. These homes feature:
- Full kitchen and laundry spaces
- Designer bathrooms with frameless showers
- Generous bedrooms with built-in storage
- Zoned heating and cooling
- Solar-ready inclusions
- 7-star energy compliance
A granny flat is not just a structure; it’s a legally compliant, future-proofed home on your own property.
When Is A Garden Studio More Appropriate?
Garden studios work well for:
- Remote work setups
- Creative studios for art or music
- Backyard yoga or fitness retreats
- Temporary guest accommodation
If you don’t need permanent living functionality or planning permit complexity, a garden studio may be a quick and budget-friendly option.
However, it’s important to know the limitations. A studio cabin can’t legally be rented, and if it’s ever used for full-time living, it may breach council regulations. It also lacks the plumbing, kitchen, and heating capabilities of a true dwelling.
Building for the Long Term: Why Granny Flats Win on Value
Although studio cabins may seem appealing due to their simplicity and cost, granny flats deliver stronger long-term value. With the right builder, your granny flat:
- Adds significant capital value to your land
- Increases rental income potential
- Provides genuine living space for a growing family
- Future-proofs your home for lifestyle changes
Innovista Group’s Lana Series is designed with these goals in mind. These are not cookie-cutter units; they are architecturally considered, custom granny flats tailored for modern Victorian living. You might be wondering Are Granny Flats Worth It In 2025? Let’s Break Down The ROI and measure the true value of a granny flat investment.
Final Thoughts: Choose Based on Function, Not Just Budget
Choosing between a granny flat and a garden studio is about more than upfront cost. It’s about long-term lifestyle, legal use, and value for your property.
If you need a legal, self-contained home for a family member or tenant, a granny flat like Innovista’s Lana Series is the clear winner. If you simply want a backyard escape or office, a garden studio might suffice.
For those wanting to future-proof their property with a comfortable, compliant second home, Innovista Group offers some of the best custom granny flats Melbourne has to offer.
From planning to permits to the final handover, contact us to see how easy it can be with Innovista Group.
