Granny Flats In Melbourne, Built As Real Second Homes

A granny flat is a self-contained home of up to 80 m² built on the same block as an existing house. In Victoria its official name is a small second dwelling. It must have its own kitchen, bathroom and toilet, and it stays part of your property. Xircon calls ours Second Homes because each one is built on site, on a concrete slab with a steel frame, like a full-size home.

From $154,990* for a 40 m² one-bedroom Xircon granny flat, $169,900* for a 60 m² two-bedroom design, $179,900* with two bathrooms and $184,900* with three bedrooms. Each price includes plans, engineering, the building permit, our Signature Inclusions and service connections up to 12 m, on a standard, level site with easy access. Narrow access, soil, slope and the distance to your existing services can add to it. After a free site inspection you get a fixed price in writing, and once your site costs are set they don't change. Read our full granny flat cost guide.

Often not. Since December 2023, a small second dwelling (now up to 80 m², from 15 October 2026) doesn't need a planning permit on most residential lots of 300 m² or more that have no special overlays. Lots under 300 m², some zones, and overlays such as flooding, bushfire or heritage can still need one. We check your title and overlays at the free site inspection and tell you which applies to your block. Read our guide to granny flat rules in Victoria.

Yes, always. A registered building surveyor must issue a building permit before work starts, confirming the design meets Victoria's siting, safety and energy rules. Xircon prepares the working drawings, engineering, soil test and 7-star energy report, and arranges the building permit for you.

Yes. Since December 2023 anyone can live in a small second dwelling in Victoria, including a paying tenant, not just a family member. The Residential Tenancies Act 1997 and Victoria's minimum rental standards apply. Two-bedroom granny flats in Melbourne are commonly estimated to rent for $400 to $550* a week. Renting can affect your capital gains tax main residence exemption, so speak with your accountant first. See the renting and tax rules.

Up to 80 m² since 15 October 2026 (it was 60 m²), measured to the outside of the walls. Attached decks and verandahs no longer count. The Building Regulations still say 60 m² until they're updated. Xircon designs are 40 m² with one bedroom, or 60 m² with two or three bedrooms, so every design sits within both limits. See how the 80 m² limit is measured.

10 to 12 weeks on site, from slab pour to practical completion. Before that, allow time for drawings and the building permit, plus a planning permit if your block needs one. Your Sales Consultant gives you a full timeline after the free site inspection, and we commit to your site start date in writing.

Neither. We build every granny flat on site, on a concrete waffle slab with a steel frame and steel roof trusses, using the same trades and standards as our full-size homes. It's a permanent home, not a transportable unit, and it carries our 30-year structural guarantee.

Many Melbourne blocks can fit one of our designs. The granny flat usually sits behind your house, with a clear path from the street and private outdoor space for both homes. Our slimmest design, Apollo, is just 6.1 m across, and our square designs suit shorter yards. A free site inspection confirms which designs fit and where they can go.

No. A small second dwelling stays part of your property and can't be subdivided or sold on its own. If you want two separately titled homes, ask us about dual occupancy instead.

No. A small second dwelling can't be connected to mains gas, so every Xircon granny flat is all-electric, with heat-pump hot water, a ceramic electric cooktop and split-system air-conditioning.

It can. A granny flat adds a second self-contained home and the option of rental income, which many buyers value. The effect differs by suburb and property, so ask a local agent or valuer about your address. Remember it can't be sold separately from the main house.

Yes. Every Xircon guarantee applies to your granny flat: our 30-year structural guarantee, fixed-price contract, fixed site costs, guaranteed site start, $1,500* rock removal assurance, 12-month price guarantee and 12-month maintenance period, under their published terms.

Yes. Your site inspection is free, with no obligation to build. A Sales Consultant checks your lot size, zoning, overlays, access and services, tells you which designs fit, and follows up with a fixed-price quote in writing.

We build granny flats within 50 km of the Melbourne CBD, across the western, northern, eastern, south-eastern and bayside suburbs, from Werribee and Melton to Craigieburn, Croydon, Cranbourne and Frankston. Just outside that? Ask us.