Why 60m² Granny Flats Are Ideal for Property Investment in Victoria

Have you ever wondered why so many homeowners and investors in Victoria are turning to 60m² granny flats as their go-to investment? Whether you’re looking to increase your property’s value, earn extra income, or create multi-generational living options, a well-designed 60m² granny flat might just be the smartest move you make this year.

Understanding the 60m² Standard in Victoria

In Victoria, 60 square metres is the maximum size allowed for a secondary dwelling (granny flat) on most residential lots, as defined by local councils and the Victorian Planning Provisions. This limit ensures that granny flats remain a “secondary” structure rather than a full-sized home.

But here’s the good news — 60m² is more spacious than it sounds.

With smart design, a 60m² granny flat can comfortably include:

• Two bedrooms
  
• One or two bathrooms
  
• A full kitchen
  
• A laundry nook
  
• A combined dining and living area
  
• Outdoor deck or alfresco space

Modern modular and custom-built granny flats make every metre count, giving you the feel of a compact home that’s functional, stylish, and compliant.

Why 60m² Hits the Sweet Spot

So, what makes the 60m² size so ideal — not 50m² or 70m²?
 Let’s break it down.

1. Fully Compliant Across Victoria

In most Victorian council areas, 60m² is the largest self-contained unit you can build on a standard residential block without needing complex rezoning or subdivision approvals. That means less red tape, lower permit costs, and a smoother approval process — especially when working with experienced builders like Superior Granny Flats who understand local regulations inside and out.

2. Perfect Balance Between Comfort and Cost

A 60m² granny flat offers all the comforts of a small home without the high construction costs of a larger dwelling. You’re not overspending on unnecessary space, yet you’re offering tenants or family members enough room to live comfortably — a win-win for both affordability and practicality.

3. Ideal for a Wide Range of Uses

This size suits multiple purposes:

• Rental income: Ideal for singles, couples, or small families looking for affordable housing.
  
• Multi-generational living: Gives elderly parents, adult children, or extended family their own private space while staying close.
  
• Guest accommodation or home office: A separate retreat that boosts your property’s versatility.

Essentially, a 60m² granny flat adapts to your needs today and can be repurposed later — without major renovations.

For larger families or those needing extra space, Superior Granny Flats offers versatile options, including 4 bedroom granny flats and 3 bedroom granny flats for sale.

Why Granny Flats Make Financial Sense

Granny flats aren’t just about lifestyle. They’re a strategic property investment move — especially in Victoria, where housing affordability and rental demand continue to rise.

Here’s why.

1. Strong Rental Yields

According to recent property data, granny flats in suburban Melbourne and regional Victoria can deliver rental yields between 5% and 8%, often outperforming traditional investment properties. A well-designed, detached 60m² unit on your existing land can bring in anywhere from $350 to $500 per week, depending on location and finishes.

That’s steady passive income — all from space you already own.

2. Lower Upfront and Ongoing Costs

Building a 60m² granny flat costs significantly less than purchasing a new investment property.
 There’s no stamp duty, no new land purchase, and maintenance costs are low. Most high-quality builds in Victoria range from $120,000 to $180,000, depending on the level of customisation and finishes.

Compared to Melbourne’s median house price (hovering above $900,000), that’s a far smaller outlay with a quicker path to returns.

You Might Also Like: How Much Does It Cost to Build a Granny Flat in 2025?

3. Increased Property Value

A well-designed granny flat can boost your property’s overall value by up to 30%.
 Buyers today are drawn to properties with dual-income potential or built-in accommodation flexibility, giving your home a competitive edge if you decide to sell.

4. Tax and Depreciation Benefits

As an investment, your granny flat may qualify for tax deductions on construction costs, fittings, and depreciation.
 It’s worth consulting your accountant for tailored advice, but many investors find that these benefits help offset their initial outlay and increase long-term profitability.

Victoria’s Growing Demand for Secondary Dwellings

Victoria’s housing market has shifted dramatically in recent years. Rising interest rates, limited housing supply, and growing rental demand have created the perfect conditions for smaller, self-contained dwellings.

1. Affordability Crisis

With house prices continuing to climb, more Victorians are seeking affordable rental options that offer independence without breaking the bank. A 60m² granny flat fits that demand perfectly — compact, private, and modern.

2. Changing Family Dynamics

Many families are turning to multi-generational living to save costs and stay connected.
 A 60m² unit offers elderly parents the security of being close to family while maintaining their independence. Likewise, adult children can have their own space without needing to rent elsewhere.

3. Remote Work Revolution

The rise of remote and hybrid work models has made flexible housing more appealing.
Homeowners are using granny flats as home offices, studios, or creative workspaces, giving them a professional environment without leaving the property.

If you’re looking for options when it comes to a builder, Superior Granny Flats is the way to go. We proudly serve many areas with top-qualitygranny flats in Dandenong, Windsor, Hoppers Crossing, and Laverton.

Making the Most of 60m²

You might be wondering — can a 60m² space really feel spacious and modern?

Absolutely. When designed right, a 60m² granny flat can rival full-sized homes in comfort and functionality.

1. Smart Floorplans

Clever layouts make all the difference. Open-plan kitchens and living spaces create flow and maximise light.
 Sliding or bifold doors can connect indoor and outdoor areas seamlessly, making the flat feel larger.

2. Customisation Options

At Superior Granny Flats, you can choose from a wide range of custom and prefab designs, from minimalist single-bedroom layouts to stylish two-bedroom family dwellings. Every design is optimised to make the most of your available space, orientation, and lifestyle needs.

3. Energy Efficiency and Sustainability

With modern construction techniques, insulation, and double-glazed windows, 60m² granny flats are energy efficient — helping to reduce running costs and environmental impact.
 Solar options, rainwater tanks, and smart home features can also be integrated to future-proof your investment.

Also Read: How to Customise Studio Granny Flat Floor Plans for Energy Efficiency

4. Low Maintenance Living

A smaller footprint doesn’t just mean lower construction costs — it also means less upkeep.
 For investors and tenants alike, that’s less time spent maintaining the property and more time enjoying it.

Approvals and Planning: What You Need to Know

The process of building a granny flat in Victoria is simpler than most expect — but it’s crucial to get it right from the start.

Here’s an overview:

1. Check Local Zoning and Council Rules:
    Most councils allow a secondary dwelling (up to 60m²), but some may have setback or height restrictions.
   
2. Comply with Building Codes:
    Your granny flat must meet the Building Code of Australia standards for safety, structure, and energy efficiency.
   
3. No Separate Title or Subdivision Required:
    Granny flats typically remain part of the main property title — you can rent them out but not sell them separately.
   
4. Engage a Specialist Builder:
    Working with a builder experienced in Victorian council requirements — like Superior Granny Flats — ensures the process stays smooth, compliant, and stress-free.

By partnering with experts, you avoid costly mistakes and delays, keeping your project on time and on budget.

Why Choose Superior Granny Flats

Building a granny flat is a significant investment — so choosing the right builder matters.
 With over 30 years of experience, Superior Granny Flats has earned a reputation across Victoria and Queensland for quality craftsmanship, functional design, and transparent service.

When you work with us, you get:

• Tailored designs that maximise comfort and compliance
  
• Turnkey solutions from permits to construction
  
• Affordable pricing with no hidden surprises
  
• Expert advice from a team that’s built thousands of granny flats across Victoria

Our team understands local council regulations, soil conditions, and design trends — so you get a granny flat that looks beautiful, performs well, and adds real value to your property.

Ready to Build Yours?

A 60m² granny flat isn’t just a compact addition — it’s a smart, future-ready investment. It gives you flexibility, strong rental potential, and increased property value, all while complying with Victoria’s planning rules and staying affordable to build.

Whether you’re an investor, homeowner, or someone planning for family living, a 60m² granny flat offers the perfect balance between practicality, comfort, and profitability.

At Superior Granny Flats, we make the process simple — from council approvals to design and construction.

 If you’re considering adding a 60m² granny flat to your property in Victoria, get in touch with our friendly team today. We’ll help you design and build a space that’s functional, stylish, and built to last — so your investment truly works for you.