Granny Flat Check
Price guide · checked 29 October 2026

Granny flat site costs and connections

On an easy flat block, connections and site preparation are already inside the all-in price: about $176,000–$255,000 for a 60 m² granny flat in Melbourne. A harder block adds $10,000 to $50,000 or more. A slope adds $10,000–$35,000, a sewer pump $8,000–$16,000, reactive clay $12,000–$25,000 and tight access $5,000–$11,000.

What site work adds

Add these to the all-in price from the cost calculator. They are the same figures used across this site, checked 29 October 2026.

Site issueAdds 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

Two or three of these on one block is common in older Melbourne suburbs. Ask every builder to price them as separate lines, so you can compare quotes like for like.

Sewer

The flat’s drain joins the property’s existing sewer line, which runs to the water authority’s main at the legal point of discharge. If the flat’s floor sits lower than that point, or the run is long, waste has to be pumped, and that is where the $8,000–$16,000 comes from.

Melbourne is served by three retail water authorities: Greater Western Water, Yarra Valley Water and South East Water. Order the property’s sewerage plan from yours before a designer draws anything. If the flat would sit over or near a sewer easement, you will need the authority’s consent to build over or near it, and sometimes the pipe has to move.

Water and stormwater

Water usually tees off the house supply. Roof water from the flat has to go to the legal point of discharge for stormwater, often the kerb or an easement drain, or into a rainwater tank first. A long trench across a finished backyard is a cost people forget.

Electricity, gas and internet

  • Power. Most flats run off the main house supply with a private sub-meter. A separate meter may be possible depending on the distributor, and costs more. Check the main switchboard has spare capacity, because an all-electric flat adds load.
  • Gas. A small second dwelling can’t connect to reticulated gas and keep its planning exemption. The main house can keep its gas.
  • Internet. Run a conduit with the power trench. NBN can often extend to the flat, or a mesh Wi-Fi link from the house will do.

Slab, soil and slope

Footings are designed for the soil, which a geotechnical report sorts into site classes from A (sand and rock, little movement) through S, M, H1 and H2 to E (extremely reactive clay). Much of Melbourne’s west and north sits on reactive basalt clays, which is why deeper footings add $12,000–$25,000 there.

A flat block suits a concrete slab. On a slope of more than about 1 m, a raised floor on stumps or steel piers is often cheaper than cutting and retaining, but either way expect $10,000–$35,000 extra.

Access, cranes and old sheds

Modular and prefab flats arrive by truck and are lifted in by crane, so they need clear access or a crane that can reach over the house. With tight side access everything goes in by hand, which adds $5,000–$11,000. An old shed, garage or slab in the way costs $4,000–$14,000 to remove, more if it contains asbestos.

Who does the work

In Victoria a builder must be registered to take on domestic building work worth more than $10,000, and work over $16,000 needs domestic building insurance. The main house must already exist before a building permit can be issued for the flat. Read the Victorian rules for the planning side.

Questions

How much do site costs add to a granny flat?

On an easy flat block with services close by, nothing extra: connections are already inside the all-in price, about $176,000–$255,000 for 60 m² in Melbourne. A hard block adds roughly $10,000 to $50,000 or more, mostly from slope, a sewer pump, reactive clay or tight access.

How much does it cost to connect a granny flat to the sewer?

A short gravity run to the existing house drain is part of a normal build. If the flat sits lower than the sewer or far from it and needs a pump, budget about $8,000–$16,000 extra.

Can a granny flat have its own electricity meter in Victoria?

Sometimes. The Victorian building regulator says separate water or electricity meters may be possible depending on the utility provider. The cheaper option is a private sub-meter off the main house supply.

Can a granny flat have gas in Victoria?

No, not if you want to skip the planning permit. A small second dwelling must not be connected to reticulated gas, so plan for induction cooking, a heat-pump hot water system and reverse-cycle heating.

How close can a granny flat be to the house?

1.8 m, unless the walls are fire-rated. The Victorian building regulator lists a 1.8 m separation from the main house for a small second dwelling without fire-rated construction.