How much is a granny flat in Melbourne, Victoria?
Traditional granny flats run $140k–$190k and take the better part of a year. Here's how a MicroHome compares.
If you’ve started pricing a granny flat in Melbourne, you’ll have seen the range: typically $140,000 to $190,000 for a permanent build, depending on size and finishes — plus the permits, the trades, and the many months.
Where a MicroHome lands
A MicroHome sits in a similar price band but changes what you get for it. The Urban Studio — a full 6.0 × 3.2m home with a separate bathroom, laundry and galley kitchen — starts from $144,100 inc GST, and the full 9.0m Urban One Bedroom from $149,000 inc GST, which includes delivery within Melbourne metro. RESOLVED 2026-08-28 (client sign-off) — figures to be verified against current pricing.
Three practical differences
- Speed. Twelve weeks to build once your build starts (plus whatever the queue is when you sign), not the extended timeline of a fixed build.
- Permits. Because it’s on a registered chassis, a MicroHome can often avoid the building permit a fixed granny flat needs — but that depends on your council and zone, so it has to be confirmed for your block before you rely on it. (Council rules on living in one vary too — we’ll walk you through yours.)
- It’s not permanent. A traditional granny flat is stuck where you pour it. A MicroHome can be moved, or sold, if your plans change.
The real comparison
For roughly what a fixed granny flat costs, you get a home that’s faster to build, doesn’t over-capitalise your land, and keeps its options open. For a lot of Melbourne families, that’s the deciding factor.