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How Long Does It Take to Build a Granny Flat in Melbourne? A Step-by-Step Guide

March 19, 2025

Building a granny flat in Melbourne is an excellent way to add value to your property, provide additional living space, or generate rental income. With the growing popularity of modular homes, prefab homes, and prefabricated homes, many homeowners are now looking for efficient and cost-effective ways to construct a granny flat in a shorter timeframe.

The duration of a granny flat project depends on various factors, including design complexity, permits, site preparation, and construction methods. On average, a granny flat in Melbourne takes between 3 to 6 months to complete. However, opting for modular homes or prefab homes can significantly reduce the construction time compared to traditional building methods.

In this guide, we’ll outline each step involved in the granny flat construction process and provide an estimate of how long each stage typically takes.

Step 1: Concept and Design (2–4 Weeks)

The first step in building a granny flat is defining your requirements and selecting a design. Many builders in Melbourne offer pre-designed layouts that help speed up this process, while custom designs take longer due to the need for additional planning and approvals.

Key factors influencing the design phase:

• Choosing between pre-designed prefab homes or a custom modular home

• Determining the size, layout, and features of your granny flat

• Working with an architect or builder to finalise the design

Most modular homes and prefab homes in Melbourne come with standardised designs that can be easily adapted, reducing design time compared to traditional custom builds.

Step 2: Permitting and Approvals (4–8 Weeks)

Before construction can begin, you’ll need to secure the necessary permits from your local council in Melbourne. The permit process varies based on the location and specific regulations of your area.

What approvals are needed?

• Building Permit: Required for all granny flats in Melbourne to ensure they meet safety and structural standards.

• Planning Permit: Some properties may require a planning permit, but in many cases, this can be waived if the property meets certain criteria (e.g., a minimum lot size of 300 sqm).

What affects approval timelines?

• The complexity of your granny flat design

• Local council processing times

• Whether additional approvals (e.g, heritage or environmental considerations) are needed

A prefabricated home or modular granny flat may get approvals faster since these structures are often built to meet standard building codes.

Step 3: Site Preparation (1–2 Weeks)

Once permits are approved, the site preparation phase begins. This involves clearing and levelling the land, laying the foundation, and setting up utility connections.

Typical site preparation tasks:

• Clearing any trees, debris, or obstacles

• Levelling the ground to ensure a stable foundation

• Connecting essential utilities such as electricity, water, and drainage

One advantage of modular homes and prefab homes in Melbourne is that site preparation can occur simultaneously with factory construction, significantly reducing overall project timelines.

Step 4: Factory Construction/Prefabrication (6–8 Weeks)

For those opting for prefabricated granny flats, much of the construction takes place off-site in a controlled factory environment. This ensures quality control, reduces delays, and speeds up the process.

Why is factory construction faster?

• Work is not affected by weather conditions

• Builders can work on multiple components simultaneously

• Prefab builders report that 80–85% of work is completed off-site, reducing on-site labour

This stage involves:

• Manufacturing the granny flat modules

• Installing walls, roofing, and internal fixtures

• Preparing the structure for transport to the site

Since prefab homes are built efficiently in factories, they are often completed faster than traditional construction, making them a popular option for granny flats in Melbourne.

Step 5: Delivery and On-Site Assembly (1–2 Weeks)

Once the prefabricated granny flat is ready, it is transported to the site for final assembly. This stage is usually quick because modular homes and prefab homes are designed for easy installation.

What happens during assembly?

• The granny flat modules are craned into place

• Workers connect sections and ensure proper alignment

• Essential fittings and fixtures are secured

For traditional construction, this stage can take significantly longer, but for prefab homes, the process is streamlined for efficiency.

Step 6: Finishing Touches and Inspections (2–4 Weeks)

In the final phase, contractors complete the internal and external finishing work and ensure the granny flat is ready for occupancy.

Tasks completed in this stage:

• Connecting utilities such as plumbing, electricity, and gas

• Interior finishing work, including painting, flooring, and cabinetry

• Conducting final inspections to meet building codes

• Addressing any minor defects or touch-ups

Once all inspections are approved, you will receive an occupation certificate, allowing you to legally use the granny flat.

According to Premier Homes & Granny Flats, most homeowners move in within a week after final completion.

Total Estimated Timeline for a Granny Flat in Melbourne

When considering all the steps, the entire process from concept to completion typically takes between 3 to 6 months. However, the exact timeline depends on several factors:

• Traditional vs. Prefab Construction: Prefab homes in Melbourne can be completed in a shorter timeframe than traditional builds.

• Permit Processing Time: Delays in council approvals can extend the timeline.

• Weather Conditions: On-site construction may be affected by extreme weather.

By choosing modular homes or prefabricated homes, homeowners can significantly reduce construction time while ensuring quality and efficiency.

Conclusion

Building a granny flat in Melbourne is a great way to add space, increase property value, or generate rental income. With the right planning and construction approach, your project can be completed in as little as 3 to 6 months. Choosing a modular home or prefab home can further streamline the process, reducing delays and ensuring a high-quality build.

If you're ready to start your granny flat project, our expert team is here to help! Whether you need assistance with design, approvals, or construction, we offer custom and prefab solutions to suit your needs. Contact us today to book a consultation and take the first step toward your dream granny flat!

FAQs About Building a Granny Flat in Melbourne

1. What is the fastest way to build a granny flat in Melbourne?

The fastest method is to choose a prefabricated or modular granny flat, as most of the construction occurs off-site, reducing delays.

2. Do I need council approval to build a granny flat in Melbourne?

Yes, a building permit is always required, but a planning permit may not be necessary if your property meets specific criteria.

3. How much does it cost to build a granny flat in Melbourne?

Costs vary depending on size, materials, and design. Prefab granny flats tend to be more cost-effective due to lower labour and material costs.

4. Can I rent out my granny flat?

Yes, many homeowners rent out their granny flats for extra income, but you should check Melbourne’s council regulations regarding rental properties.

5. Are prefab granny flats durable?

Yes, prefabricated homes are built to strict standards and can last as long as traditionally built homes with proper maintenance.

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