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How Much Does a Granny Flat Cost in Sydney?

The average price of a Sydney granny flat falls between $80,000 to $120,00, but you’re not average (and neither are we). The final price of a granny flat build will be impacted by the size, finish quality, and custom inclusions. If you’re looking to upgrade your living or create a source of passive income, read on for the full breakdown of prices for the Sydney granny flat market.

Looking to expand your living space without spending big on construction?

Granny flats are exploding in popularity across Sydney as homeowners look to leverage their land. As a way to generate passive income through rent, a way to increase the value of your land, or a place to house friends and family during the chaos of a pandemic, the humble granny flat has become a significant advantage.

Although granny flats have their roots as structural options to offer independent living space for family members, the advantages in 2021 are significantly more varied. A granny flat arrangement allowed younger members to keep an eye out on the older generation without intrusion, but these mini-homes have expanded their use in modern times.

Today, you can add a granny flat to your property for a number of reasons from an expanded living space to a creative work-from-home solution. You can also move into your own granny flat and rent your primary residence to cut your living expenses and increase income. 

But with the allure of this flexibility comes the question of price. 

Granny flats come in different shapes and sizes with a variety of amenities so what you pay in granny flat costs in Sydney will ultimately vary depending on what you select. A look at average prices shows the costs to be between $80,000 to $120,00, but you’re not average (and neither are we).

To better explain this wide range, we’re taking a closer look at granny flat cost in Sydney and what can add to or reduce that price. 

Is it really worth building a granny flat in Sydney?

As with any home improvement, renovation or construction project, price is meaningless if there’s no value on the other side.

So let’s start with the reasons you’re considering building a granny flat in the first place. 

Are you looking for rental flexibility? In that case, it could be worthwhile in the long term to build a granny flat to live in while you rent out your home. 

Or, does a granny flat seem like an ideal option for a home office or creative hobby workplace? This might take longer to recoup any of the expense, but the extra space might make your work more enjoyable.

Preference aside, granny flats offer many benefits that make them worth considering. Here are just a few of the exciting advantages for you to consider.

Increase property value

No matter how you plan to use the space, the extra living area can be appealing to future buyers. This increases the appraised value of your property in the event that you want to sell. On average, you can get 10-20% of a return on your investment.

Curious about wealth creation? Click here to discover how to create an additional income stream

Get rental income

Rental income can work two ways. 

Firstly, you can choose to rent out the granny flat to travelers, students, or others in need of temporary housing. Or, you can decide to move into the flat yourself and rent out your main home. 

In either situation, you’ll add to your income and can use it to pay down the cost of the granny flat, your primary mortgage, or other expenses as needed. 

Enjoy more flexibility

You don’t have to commit to a use for the space for the long term. As your needs change, your granny flat can help meet those needs. For example, you can start with a home office, and with a few furniture changes, convert it to a nearby yet private home from an older family member years later. 

Options that impact granny flat cost in Sydney

As you might imagine, granny flats come in all shapes and sizes just like standard homes. 

The difference is that they remain micro versions that can fit into a smaller space on your property or in your backyard. And just like a primary residence, you can choose from smaller, conservative designs or larger and more luxurious finishes. 

Here are the primary influences of your final granny flat cost.

Living space

First and foremost, pricing stems from the size of the granny flat. 

This dictates the amount of materials and supplies needed to build out the entire structure. The smallest granny flats can be 30-35 square metres, just enough space to comfortably house a family member or work from home. 

Larger granny flats can include two or three bedrooms. Any number of floor plan configurations are possible, but you typically won’t see a granny flat much larger than 80 square metres.

Finish quality

This one is important to emphasise. 

Make sure the builder you choose includes the quality of finishes and appliances you expect for the price you are quoted. Ask to see samples of flooring, countertops, and fixtures and what it would cost if you wanted to upgrade so there are no surprises.

Looking for a little inspo? Click here for our stylish project gallery


Most granny flat builders approach the process in two ways: kit or design. 

With a kit, most of the options are already preselected and limiting. With a design, you can choose from layouts and options that give you more flexibility. While this can be great, making changes to a set design can lead to more expenses depending on the builder. 

Some features that allow for customisation include:

  • Increasing wall height
  • Changing flooring material
  • Altering roof shape
  • Adding appliances
  • Upgrading insulation
  • Altering window design
  • Including extra lighting
  • Upgrading fixtures and decor


Some granny flat builders work from preset designs and leave out items in order to reduce overall costs. 

Be sure to double check these inclusions carefully. Some features you might not miss, while others you could find yourself paying for on your own down the track. 

Inclusions you could end up paying extra for include:

  • Utility service connections
  • Permits and council approval
  • Access pathways or walks
  • Security systems or shutters
  • Ground/foundation preparation 

How much does a granny flat cost in Sydney? 

Adding a granny flat to your property can range in price, some of which you do have control over. 

You’ll start by looking at floor plans and designs that are often categorised by size. From there, you can select any upgrades or make changes to inclusions and finishes to make it your own. Unless you go for something overly extravagant, the average granny flat cost in Sydney is between $80,000 to $120,00.

To demonstrate how the size of the granny flat relates to the price, we’ve put together the below table with average costs.  



Average Cost per Square Metre

One Bedroom

35m2 – 45m2

$80,000 to $125,000

Two Bedroom

50m2 – 60m2

$110,000 to $150,000

Three Bedroom

60m2 – 80m2

$120,000 to $160,000

What is the process of building a granny flat in Sydney?

The build process will be unique for every granny flat, especially when there are so many options for finishes and floor plans. 

However, all granny flats are subject to a similar overall approach that can take anywhere from 9-15 weeks to complete. Here is a high-level overview of the process.

Step #1: Choose a size, floorplan, and design

Step #2: Confirm finishes and plan customizations

Step #3: File for approvals and permits

Step #4: Clear and prep the building site 

Step #5: Build a slab or foundation for the structure

Step #6: Frame, roof, and enclose the building

Step #7: Insulate, line, and add utilities

Step #8: Install windows, cabinetry, and flooring

Step #9: Install fixtures and finishes

Step #10: Finalize décor and design 

Step #11: Site inspection

Step #12: Clean up and walkthrough

Looking to learn more about your own granny flat? Click here to discover our stress-free 14-week process

Looking to add a granny flat to your Sydney home and expand your options?

Granny flats aren’t just for grandparents anymore. 

These versatile spaces can be used to house family members, but they can also be created as home-away-from-home spaces to work and create in. They also give you flexibility for rental income as your needs change over time. 

If your property qualifies for a granny flat and meets the minimum requirements for SEPP, it can be worth exploring the granny flat cost in Sydney. Of course, this will vary depending on how big of a structure you want to build and how lavish you want your finishes to be. On average, you can expect to spend between $80,000 to $120,000. Just be sure to get a clear estimate of all inclusions from a builder, since the extras and unknowns can add up.

If you’re considering a granny flat for your Sydney property, look no further than Bellcast Granny Flats. You can call us on 1300 661 370 with any questions or send us a message online. We’ll get back to you as soon as possible and look forward to speaking with you!

How Much Does a Granny Flat Cost in Sydney?

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