Renovation and granny flat projects in Melbourne and regional Victoria

You can renovate your home and build a granny flat together. In Victoria, a granny flat on the same lot as your home is a small second dwelling, and since 15 October 2026, Amendment VC306 lets one of up to 80m² go ahead without a planning permit in many cases. It may still need a planning permit, such as on a lot under 300m² in a residential zone or where an overlay or other control requires one, and it needs a building permit in every case. Changes to the Building Regulations are due to follow, so check the current building rules with your building surveyor. Dwellix builds both in Melbourne, Geelong, Ballarat and Bendigo.

Key facts

Size: up to 80m² under Amendment VC306 (from 15 October 2026), with a kitchen, bathroom and toilet, on the same lot as an existing home. (Victorian Government)

Planning permit: not needed in many cases, unless an overlay or other control requires one; required on a lot under 300m² in a residential zone other than the Low Density Residential Zone. (Victorian Government)

Building permits: the granny flat needs one in every case; renovation work needs one unless the Building Regulations 2018 exempt it. (Victorian Government; Building Act 1993)

Siting: behind the front wall of the existing home, with private open space and a clear path from the front street. (Building and Plumbing Commission)

Checked 8 October 2026.

Can you renovate and build a granny flat at the same time?

Yes, with each part approved on its own terms. The granny flat follows Victoria’s small second dwelling rules, and the renovation follows the building permit rules for alterations. Where either needs a planning permit, the council must issue it before the building permit.

Sources: Victorian Government; Building Act 1993; Building and Plumbing Commission. Checked 8 October 2026.

What are the small second dwelling rules?

What it is: a home of up to 80m² under Amendment VC306 (from 15 October 2026), with a kitchen, bathroom and toilet, on the same lot as an existing home. Changes to the Building Regulations are due to follow, so check the current building rules with your building surveyor.
Planning permit: not needed in many cases, unless an overlay or other control requires one. On a lot under 300m² in a residential zone (other than the Low Density Residential Zone), a planning permit is required.
Building permit: required in every case.
Gas and parking: it must not be connected to reticulated natural gas, and no car parking space is required.
Ownership and use: it can’t be subdivided or sold separately, and anyone can live in it or rent it, with residential tenancy requirements applying.

Our small second dwellings guide covers each rule in detail.

Source: Victorian Government, “Small second dwellings”. Checked 8 October 2026.

Where can the granny flat go on your block?

The Building Regulations set three siting rules: the granny flat must sit behind the front wall of the existing home, private open space must be provided, and there must be a clear path from the front street.

Our three designs have different footprints. Dwellix 1 is a linear plan, Dwellix 2 has a bedroom wing and a living wing around a recessed entry, and Dwellix 3 has two pavilions joined by a glazed entry. Which one fits depends on your setbacks and on the space the renovation leaves.

Sources: Building and Plumbing Commission, “Small second dwelling”; Victorian Government. Checked 8 October 2026.

Which permits does each part need?

The granny flat: a building permit in every case, and a planning permit where the rules above require one. In a Heritage Overlay, constructing a building generally needs a planning permit.
The renovation: a building permit unless the Building Regulations 2018 exempt the work. Structural work needs one; some non-structural kitchen, bathroom and laundry work may not. See our building permits guide.

As the owner, you must make sure a permit is in force for the building work. If your project needs a building permit, we handle the permit process for you. You formally appoint the building surveyor, and we can recommend one and manage everything with them.

Where structural design is needed, we coordinate a suitably qualified external engineer. Engineering scope, costs and responsibilities are confirmed for each project.

Sources: Victorian Government; Building Act 1993; Building Regulations 2018; Victoria Planning Provisions, clause 43.01. Checked 8 October 2026.

One coordinated project

As a registered builder (CDB-U 102264), Dwellix plans and builds both parts as one coordinated project. The usual order is to renovate the existing home first, preparing services for the granny flat, then build the granny flat, then finish the separation works such as fencing and meters. Your proposal sets out how the work is contracted and staged.

How a Dwellix renovation runs

Initial enquiry and consultation. For the granny flat, our feasibility review checks your zone, overlays, lot size, access and setbacks.
Site inspection and assessment.
Detailed scope preparation.
Quotation and client approval.
Contracts, approvals and permits where required.
Trade scheduling and procurement.
Construction and project supervision.
Relevant inspections and quality checks.
Practical completion and handover. You receive the keys, the compliance certificates for any plumbing and electrical work, the certificate of final inspection where the work has a building permit, and the manufacturer warranties and manuals for what we install.

Frequently asked questions

Can I renovate my house and build a granny flat at the same time?

Yes, as long as each part has the approvals it needs. The granny flat needs a building permit in every case, and a planning permit in some situations, such as a lot under 300m² in a residential zone other than the Low Density Residential Zone. The renovation needs a building permit unless the Building Regulations 2018 exempt the work.

Where can a granny flat go on my block?

Behind the front wall of the existing home, with private open space and a clear path from the front street. On a lot over 300m², siting is generally assessed at the building permit stage. On a lot under 300m² in a residential zone (other than the Low Density Residential Zone), a planning permit is required.

How much does a renovation and granny flat cost?

It depends on the granny flat design, façade and specification you choose, your block, and the scope of the renovation. We don’t publish combined prices. We quote after a site inspection and a detailed scope, so the price reflects your home. Our granny flat cost guide explains what sets the granny flat price.

Can I rent out the granny flat?

Yes. Anyone can live in or rent a small second dwelling, including family members or unrelated people, and residential tenancy requirements apply. It can’t be subdivided or sold separately from the main home. See building a granny flat to rent out.

Check your block

Start a feasibility check to see how the rules apply to your property. Prefer email? Write to sales@dwellix.com.au.

General information only, checked 8 October 2026. Rules change; confirm requirements for your property with your building surveyor or council.