Granny Flats in Victoria

Granny flats, also called secondary dwellings or backyard studios, are becoming a popular choice for families across Australia. These small, separate homes are built on the same property as a main house. They allow families to live closer together while keeping costs down, which is especially helpful during these times of high house prices and living expenses.
However, in Victoria, it used to be more difficult to build a granny flat than in other parts of Australia due to strict planning rules. But now, there’s good news!
Victoria’s New Rules on Granny Flats
In December 2023, the Victorian Government announced a big change: homeowners no longer need a planning permit to build a granny flat if it’s under 60 square meters and on a property that’s more than 300 square meters in size. This makes it much easier and quicker to build a granny flat for your family, allowing many families to stay close and save on housing costs.
This change means over 700,000 properties in Victoria are now eligible for granny flat development without needing a planning permit. As Premier Jacinta Allan said, “For many Victorians, planning approvals have been a barrier. We’re making it easier for families to stay together and care for loved ones.”
What This Rule Change Means
Why did the government make this change? With property prices continuing to rise, more families want affordable housing options and may choose to live together across generations. A granny flat offers extra living space for family members, or it can be used as a rental unit for additional income. Before this new rule, many people were discouraged by the time and effort required to get planning permits.
Now, homeowners can build a granny flat without worrying about planning permits. This means families can create more space to live together, with fewer barriers.
Main Points of the New Granny Flat Rules
Here’s a simple overview of what the new rules mean:
- No Planning Permit Needed: Starting in December 2023, a granny flat under 60 square meters on a property larger than 300 square meters does not need a planning permit, as long as the property isn’t at risk for flooding or other environmental hazards.
- Building Permit Still Required: While planning permits are no longer required, a building permit is still necessary. A building permit is different from a planning permit. Your granny flat must also follow ResCode rules, such as maintaining a certain distance from property boundaries. Also, you cannot sell a granny flat separately from the main home.
Not Just for Grannies!

The name “granny flat” might make you think it’s only for grandparents, but that’s far from true! Granny flats are used for many purposes beyond housing older family members. They can serve as a home office, kids’ playroom, chill-out zone, home gym, or even a pool house. The possibilities are endless, and with a bit of creativity, you can turn a granny flat into almost anything. In fact, after building one, you might even consider moving into it yourself!
Adding Value to Your Property
A granny flat can be a great asset that increases the value of your property. High-quality granny flats, like those from Granny Flats Melbourne, can improve your property’s worth and act as a long-term investment with low maintenance. You could also rent out the granny flat for extra income, which could help you pay off your mortgage more quickly. Or, if renting isn’t for you, a granny flat can provide space for an older child who needs a bit of independence.
A Place for ‘Me Time’
Need a quiet space to relax? A granny flat can be the perfect escape! Set it up as a cozy chill-out zone with a sofa, TV, small kitchen, bathroom, and bed. It becomes a peaceful place to unwind without interruptions. It’s also a great space for kids to hang out with friends, which can keep the main house quieter.
The Perfect Home Office
If you work from home, a granny flat can be the ideal office upgrade. Imagine a workspace with large windows, natural light, and a view of your garden. With all your electrical needs taken care of, you can have a productive, quiet space without distractions from the main house. Plus, it’s customizable, so you can set it up exactly how you like for the perfect work environment.
Bringing Excitement to Your Garden
Ever looked at your backyard and wished for something more exciting? Adding a granny flat can create a fresh, stylish look for your outdoor area. Think of a modern, wooden structure with large glass doors that complements a garden or pool, turning an ordinary backyard into an attractive, functional space. A granny flat can make your garden feel special, no matter its size.
Key Takeaways: Granny Flats Are Affordable, Flexible, and Convenient
Victoria’s new rules for granny flats make it easier than ever to create additional living space for family, an office, or a rental unit. By removing the need for planning permits for granny flats under 60 square meters, the Victorian Government has taken an important step to help families stay close and affordably manage housing costs.
Early estimates suggest that over 700,000 properties may now qualify for this simpler process. With thoughtful planning and design, a granny flat could be the perfect solution for your family’s needs, whether it’s for housing, work, or relaxation.
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