A 60 m² two-bedroom granny flat in Melbourne costs about $176,000–$255,000 all-in, built by a builder. That is roughly $3,590 per m², including GST, design, the building permit, connections and basic landscaping, on a flat block with services close by.
All-in, built by a builder, on an easy flat block. Includes GST, design, permits, connections and basic landscaping.
| Size | Budget | Standard | Premium |
|---|---|---|---|
| Studio, 30 m² | $98,000– | $108,000– | $128,000– |
| 1 bedroom, 45 m² | $128,000– | $143,000– | $170,000– |
| 2 bedrooms, 60 m² | $157,000– | $176,000– | $210,000– |
| 3 bedrooms, 70 m² (needs a permit or DA) | $176,000– | $197,000– | $236,000– |
The block matters more than the design. Add these on top of the table:
| Site issue | Adds about |
|---|---|
| Sloping block, more than about 1 m fall | $10,000–$35,000 |
| Sewer uphill or far away (pump needed) | $8,000–$16,000 |
| Tight side access (crane or hand work) | $5,000–$11,000 |
| Old shed or garage to remove | $4,000–$14,000 |
| Reactive clay soil (deeper footings) | $12,000–$25,000 |
| Second bathroom | $18,000–$28,000 |
About $176,000–$255,000 all-in for a standard finish on an easy block, or about $3,590 per m². Budget finishes start around $157,000; premium can pass $300,000.
About $143,000–$212,000 all-in for 45 m² with a standard finish. Smaller flats cost more per m² because the kitchen and bathroom cost the same whatever the size.
Usually not, if it is 60 m² or less, on a residential lot of 300 m² or more, with an existing house and no bushfire or flood overlay. A building permit is always needed.
Yes, if you manage the trades. A 60 m² kit build comes to about $132,000–$198,000 all-in, against $176,000–$255,000 for a builder’s turnkey price. Permits, connections and site costs stay the same.
The site, more than the design. A sloping block, a sewer that needs a pump, tight side access, reactive clay or an old shed to remove can each add $5,000 to $35,000.
Put this price and your expected rent into the rent and ROI calculator to see the yield and payback time.
Prices are all-in estimates including GST, from our cost calculator, which is built on 2026 builder price lists and cost guides. Checked 25 October 2026. Get at least two quotes after a site visit.