As property prices climb and families seek smarter use of land, granny flats have become a powerful solution for both living space and income generation. But if you’re planning to build one in Melbourne, one question matters most: Where exactly can you build a granny flat? While the location is key, understanding the granny flat build timeline from concept to completion is just as important to ensure your project stays on track.
The answer isn’t the same for every block. From zoning to infrastructure to demand, your suburb plays a big role in whether your build will be simple or a logistical headache. Here’s a guide to the best areas around Melbourne and why they’re ideal for building a second dwelling.
How Granny Flats Are Regulated In Victoria
Before choosing a suburb, you need to understand the framework that governs granny flats in Victoria.
What the Rules Say
In most residential zones across metropolitan Melbourne, you can now build a secondary dwelling on your block without requiring a separate title or subdivision.
Key considerations include:
- Minimum lot size and private open space
- 3-meter setbacks from rear boundaries (in some councils)
- Easement and service clearance
- Proximity to existing structures on the property
Each council may have its own overlays or design guidelines, so it’s essential to work with a builder familiar with Victorian planning law, like Innovista Group, who handles all compliance and permit preparation in-house.
Top 10 Suburbs to Build a Granny Flat in Melbourne
These suburbs were chosen based on a mix of zoning friendliness, land availability, rental demand, and population growth.
1. Werribee
Werribee is booming, with new estates and large blocks perfect for granny flat builds. Rental demand is high due to its affordability and commuting distance to the CBD.
2. Tarneit
A strong market for families and multicultural households makes Tarneit ideal for multi-gen living. Most residential lots here meet granny flat zoning requirements.
3. Craigieburn
Fast-growing with plenty of 500m²+ lots, Craigieburn has the infrastructure and population density to make a second dwelling worthwhile.
4. Melton
Offering large block sizes and low land prices, Melton is one of the easiest places to get approval and maximise rental yield.
5. Point Cook
A mix of older and newer estates allows flexibility in build types. Great for renting to professionals working near Laverton and Altona.
6. Pakenham
Popular with first-home buyers and retirees alike, Pakenham’s block sizes and price points make it ideal for granny flats.
7. Dandenong
One of Melbourne’s most diverse and high-demand rental areas. Large blocks and strong local infrastructure support dual occupancy projects.
8. Frankston
Frankston offers beachside living, good schools, and great train links. Properties with deep lots are perfect for a Lana 43 or Lana 60 install.
9. Broadmeadows
This inner-north suburb is undergoing rapid gentrification. Strong rental demand and existing infrastructure make it a smart investment.
10. Geelong (Greater Region)
While outside the traditional metro ring, Geelong and its surrounds, like Corio and Norlan,e offer great ROI for second dwellings and growing demand.
How Innovista Group Can Help You Build with Confidence
Whether your land is flat, sloped, or oddly shaped, Innovista Group provides:
- Free site assessments
- Custom design guidance based on zoning overlays
- Permit applications and planning submissions
- Full transparency on build costs and timelines
From Werribee to Frankston, we’ve delivered successful granny flat projects that are built to last and earn.
Final Thoughts: Choose Location Before You Choose a Floor Plan
Before falling in love with a design or price, make sure your location supports your vision. The best granny flat is one that works on your block, fits council criteria, and delivers on your financial or family goals. For many first-time buyers, our house and granny flat packages offer an ideal setup that balances affordability, flexibility, and future growth. Innovista Group knows Melbourne inside and out, from zoning to rental trends. If you’re serious about building a second dwelling, they’re the best partner to get it done right.
Start your journey to smarter multi-generational living. Contact us today.
