Last updated October 2026
Relocatable homes in Melbourne and permanent granny flats can both add a second home to your block, but they suit different goals. A relocatable or transportable home is built to be moved, while a permanent granny flat is designed to stay on your land for the long term. This guide compares the two in plain terms, covering approvals, foundations, services, flexibility, and the finance and insurance questions to ask before you choose.
Key takeaways
- A relocatable home is built off site and transported to your block, and can be moved again later.
- A permanent granny flat sits on footings or a slab designed for your soil and stays where it is built.
- In Victoria, building work generally needs a building permit, and councils such as Geelong confirm that relocating a dwelling needs one too.
- Lenders and insurers can treat relocatable and permanent homes differently, so ask before you commit.
- A free site assessment shows what suits your block.
What are relocatable homes?
Relocatable homes, also called transportable homes, are built in a factory or yard and moved to your block by truck. Once on site, they are placed on stumps or piers and connected to services. Because they are designed to be moved, they can be lifted and taken to a new site later.
Relocatable homes in Melbourne come in many sizes and styles, from small studios to larger multi room homes.
For related options, see our guides to prefabricated granny flats in Melbourne and granny flats vs tiny homes.
What is a permanent granny flat?
A permanent granny flat is a self-contained second home that stays on your block. In Victoria, a small second dwelling must:
- have a floor area of 80m² or less. From 15 October 2026, the maximum size of a small second dwelling increased from 60m² to 80m² under Amendment VC306. Read our guide to the 80m2 granny flat rules in Victoria (link to https://innovistagroup.com.au/80m2-granny-flat-victoria/).
- include a kitchen, bathroom and toilet
- sit on the same lot as an existing home
- not connect to reticulated gas
It cannot be subdivided or sold separately from the main home. The Victorian Government small second dwellings page explains the official rules.
The standard G-Flat™ is a permanent 60m², two bedroom turnkey home, with the building permit, plans and service connections up to 10m included.
Relocatable homes in Melbourne vs permanent granny flats at a glance
| Factor | Relocatable home | Permanent granny flat |
|---|---|---|
| Where it is built | Off site, then transported | For your block, to stay in place |
| Foundations | Usually stumps or piers designed for removal | Stumps or slab designed for your soil |
| Building permit | Generally required when installed | Required |
| Planning permit | Check with council | Not needed on most residential lots; lots under 300m² usually need one |
| Services | Connected on arrival | Connected as part of the build |
| Flexibility | Can be moved later | Stays with the property |
| Finance and insurance | Ask your lender and insurer | Ask your lender and insurer |
Approvals for relocatable homes in Melbourne and granny flats
Building permits
The Building and Plumbing Commission explains that all building work requires a building permit unless an exemption applies. Councils such as Geelong also confirm that a building permit is needed to relocate a dwelling to a new site. A permanent small second dwelling needs a building permit in every case.
Planning permits
For a small second dwelling, most residential lots need no planning permit. You may need one if your lot is under 300m² or if heritage, bushfire, flood or other overlays apply.
If you plan to place a relocatable home on your block to live in, ask your council and a registered building surveyor how the planning and building rules apply to your site before you buy. Our guide to granny flat approvals in Victoria explains the process in more detail.
Foundations
Foundations decide how relocatable homes in Melbourne and permanent granny flats sit on your land over the years.
- Relocatable homes usually sit on stumps or piers so they can be lifted and moved. The footings still need to suit your soil and be approved as part of the building permit.
- Permanent granny flats are built on footings designed for your site. A G-Flat™ sits on steel stumps with a timber subfloor in the Affordable, Signature and Luxe finish levels, or a concrete waffle slab in Homestead.
Melbourne clay soils move as they wet and dry, so a soil test and engineering are important for either option. Read about concrete slab vs timber subfloor on Melbourne clay.
Services and connections
Both options need water, sewer and electricity connected to the main house or the street.
- With a relocatable home, you usually arrange connections with local trades after delivery, unless the supplier includes them.
- With a G-Flat™, connection of services up to 10m from the main house is included in the price.
Longer runs can add cost. See services connection costs beyond 10 metres and our guide to a separate electricity meter for a granny flat.
Flexibility
Flexibility is the main reason people consider relocatable homes in Melbourne. A relocatable home may suit you if you:
- need temporary accommodation during a rebuild or renovation
- expect to move and want to take the home with you
- are housing someone for a set period
A permanent granny flat may suit you better if you:
- want a long term home for family or a tenant
- prefer a home designed around your block and the main house
- want a turnkey build with permits, plans and services handled for you
Finance and insurance
Finance
Lenders can assess relocatable and permanent homes in different ways, and policies vary between lenders. Before you commit, ask your lender or a mortgage broker:
- whether they will finance the home you are considering
- how the home will be valued
- whether a construction loan or another type of loan suits the build
Our guide on how to finance a granny flat build covers the main options.
Insurance
Insurers can also treat relocatable and permanent homes differently. Ask your insurer:
- whether the home can be covered under your existing home and contents policy
- whether it is covered for full replacement
- what cover applies while a relocatable home is being transported or installed
For new domestic building work in Victoria over $20,000 under contracts signed from 1 July 2026, Home Warranty insurance through the Building and Plumbing Commission may apply. Ask your builder or supplier whether your project is eligible.
Renting out either option
If you rent out a second home on your lot, Victorian residential tenancy laws apply, including minimum standards. Rents vary by suburb, finish and demand, and a local property manager can give you a rental appraisal. Read how to legally rent out a granny flat in Victoria.
How a G-Flat™ is delivered
The standard G-Flat™ is a 60m², two bedroom turnkey home with five floor plans to suit different block shapes. The price includes the building permit and reports, all plans, services up to 10m, stone benchtops, double-glazed windows, a reverse cycle split system and a 10-year structural warranty. See our full granny flat inclusions in Melbourne.
A G-Flat™ takes approximately 5 months end to end, from planning through to handover.
Frequently asked questions
Do relocatable homes need a building permit in Victoria?
Building work generally needs a building permit unless an exemption applies. Check with a registered building surveyor or your council for your site.
Can a relocatable home be moved later?
Yes, that is the main purpose of a relocatable home, although moving it again involves permits and transport.
Is a permanent granny flat sold separately?
No. A small second dwelling in Victoria cannot be subdivided or sold separately from the main home.
Compare your options with a site assessment
Book your free site assessment or visit our display G-Flat™.