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How Much to Build a Granny Flat


Building a granny flat is a fabulous idea, whether you want to make room for tenants, family members, or caretakers. A granny flat may be the simplest and least expensive method to create additional living space within your property.

This guide will highlight the different price ranges you must know when building a granny flat.

How Much Does It Cost to Construct a Granny Flat?

Unfortunately, many people who search for this query online need the right quotes. For example, some granny flat builders may promise to build your granny flat for cheaper than the reputable builders. However, when we look at the amenities and luxuries required to make a granny flat comfortable, functional and built with quality the granny flat price for a 60sqm granny flat is around $130,000.

Smart Choice Granny Flats, often come across customers with unrealistic budget expectations. So, our team provides them with an accurate estimate of their granny flat project according to the features and design they want to include. Did you know that we provide free online quotes? It only takes 1 minute, or we also do free site visits/assessments.

Building a granny flat means you should expect a budget of $110,000 to $160,000 depending on your properties and your unique needs. This price includes everything; design, approval, earthworks right through to hand over of keys. You can expect a comfortable and welcoming home within this budget.

Although companies selling granny flat kit homes promote these solutions as cheaper alternatives, beware of the price they quote. Many times, these solutions do not include the additional installation costs. Unfortunately, that means you may have to spend much more than you initially thought when choosing kit homes.

Your granny flat cost also depends on the number of rooms and storeys and the type of fixtures you want to add to your granny flat.

Cost of Different Types of Granny Flats

What is the Cost of a Granny Flat with Three Bedrooms?

Considering all the factors, building a three-bedroom granny flat in Sydney requires you to pay about $2500 more than the 2 bedroom granny flat, not much is it? Well that is because granny flats have a maximum size of 60 square meters so the 2 bedroom and 3 bedroom granny flats are both the same size, only a few extra internal walls, a wardrobe and a door. Most people still build 2 bedrooms because they are more functional, 3 bedrooms get a little cramped.

What is the Cost of a Granny Flat with One Bedroom?

Building a one-bedroom granny flat in Sydney can be built under $100,000. Quite a saving, the reason being is you can make a 1 bedroom quite smaller while still remaining comfortable and functional. Or you could even build a studio style granny flat. The savings you make on construction often don’t outweigh the reduced rental income. But a good option if room in your backyard is limited 

What is the Cost of a Granny Flat with Two Bedrooms?

To construct a 60 square meter two-bed granny flat in Sydney, you will spend about $130,000 plus any extras you may want or need.

What is the Cost of Building a Two-Storey Granny Flat?

These units are expensive, and the construction costs may climb up to $40,000 more than their single storey equivalent.

Factors that Influence the Cost of Granny Flats  


This one significantly contributes to your granny flat’s overall cost. The type of granny flat floor plans you choose impacts the final price tag of your granny flat. For instance, do you want to add a garage, an alfresco or brickwork? Do you wish to build a home office within your granny flat?

Collaborating with the best granny flat builders in Sydney will help you choose the best design according to your site and budget. At Smart Choices Granny Flats, we have stunning granny flat display homes to help you choose the best one for your project. Our team will help you select the most functional design for your granny flat and recommend the appropriate materials so you can become the proud owner of a fantastic granny flat while staying under budget.

Site Costs

You must spend more if the project involves hitting rock during excavations, the soils are contaminated or unstable, you require drop edges or demolition of structures to make space for the granny flat. In addition, if your property is in a flood-prone area or a bushfire affected area, the building costs can increase because you may need to build higher off the ground or use special fire resistant materials.

Other site preparation costs may include removing trees, fixing broken existing stormwater drainage or upgrading outdated electrical work on the existing dwelling.

The prices mentioned earlier in the blog include the fee for the granny flat plan, survey, engineering and CDC approvals. DA approval applications will cost more depending on what is involved with your specific local council.

How to Lower the Cost of Building a Granny Flat?

Rising material costs and unforeseen site expenses can sometimes make you go over your budget.

Smart Choice Granny Flats are always looking for the most creative and functional designs which provide all amenities without spending a fortune. Here are a few tips from our expert team that can help you maximise your granny flat investment by reducing building costs.

Use the flattest area of your property to build a granny flat. That will help you avoid additional costs on drop edge beams and retaining walls.

Keep room for just one bathroom in your granny flat plan. Bathrooms are often the most expensive parts of your granny flat and adding an extra bathroom will add between $3000 – $6000 depending on the size and level of finish you want.

If you have budget constraints, stick to a single-storey granny flat. Avoid opting for split-level and loft-style designs. That’s because the more the require more work and materials to complete.

How to Choose the Best Granny Flat Builders in Sydney?

Choosing the right contractor or construction company for your granny flat will help you achieve the perfect balance of luxuries and amenities in your new construction. If you don’t choose a reliable Sydney granny flat builder for your granny flat in Sydney, many things can go wrong from the planning stage to the actual building process.

Consider what you must look for in a granny flat builder Sydney.

Maintains Transparent Communication

One of the most crucial aspects of a reliable granny flat builder Sydney is their willingness to honestly discuss what you want out of your granny flat. That will also be evident from their direct approach and professional demeanour. Therefore, choose the best granny flat builders Sydney that offers honest and transparent communication so you can discuss all costs and design elements in advance so you’re not left with surprises later.

Offers A Wide Range of Design Options

Always be wary of the granny flat builders that only build their designs and not offer customisation. Such granny flat builders may provide affordable solutions, but their designs may not suit your preferences. Of course, you can always request to view their portfolio before choosing a plan that best fits your needs and budget.

Contact Smart Choice Granny Flats to discuss the best ways to build your granny flat while staying within your budget.

We have designed and built single-storey and two-storey granny flats for over a decade. Check out a variety of options at our granny flat display homes Sydney

We offer cozy and functional designs that fits any backyard, for example the ‘Modern Brick Design.’ This design is ideal for a cost effective brick granny flat option that also looks simplistic and beautiful.

Our Hampton Design is another attractive choice for building a granny house for aging parents or in-laws. This flat’s design replicates the feel and look of a holiday home by the beach.

Why Choose Smart Choice?

Since we appreciate how precious your time is, our team makes it easier for you to choose from many attractive designs under one roof or we can custom design a granny flat just for you at no extra cost. We only use the highest-quality materials for building a granny flat. Furthermore, we carefully consider all the critical elements in a sleek and aesthetic design for creating a comfortable and practical granny flat.

Smart Choice Granny Flats offer a streamlined construction process for your convenience. Visit one of our lovely granny flat display home in Sydney at our granny flat showroom Sydney. You can schedule an appointment by simply filling out your information on the contact us page. One of our staff members will get in touch with you.

You can also see 3D virtual tours of some of our completed projects to see how functional and beautiful our granny flats look. A virtual tour is an excellent opportunity to explore different granny flats layouts without leaving home. You can zoom in on features to take screenshots of anything you want to include in your granny flat design. We will discuss all details to calculate and an estimate within your budget.

So, are you ready to build the mini home of your dreams? Our granny flat showroom in Sydney offers an overview of the the full range of fixtures and finishes we offer, but more importantly we showcase how good our standard level of finishes is in our display so you can see what you get standard. What makes us stand out is that we have something for everyone. Contact Smart Choice Granny Flats today and let us build you a beautiful granny flat.