Designer Granny Flats in Melbourne & Sydney
Granny flats have come a long way from being basic, boxy add-ons at the back of the garden. Today, more homeowners in Melbourne and Sydney are choosing designer granny flats - modern, beautifully detailed spaces that add both lifestyle flexibility and long-term property value. Be it for extended family, a private retreat, or a rental investment, a well-designed granny flat can transform your backyard into something truly exceptional.
What Makes a Granny Flat “Designer”?
A granny flat moves into the designer category when it goes beyond standard templates and brings in architectural thinking. Key features include:
- Custom layouts tailored to the block and your needs.
- Architectural detailing such as higher ceilings, feature windows, or integrated joinery.
- Beautiful finishes - from contemporary kitchens to luxury bathrooms.
- Sustainable design with natural light, passive cooling, energy-efficient materials, and sustainable energy generation.
The result? A space that feels less like an add-on, and more like a treasured addition to your garden.
Benefits of Choosing a Designer Granny Flat
Investing in a designer granny flat means you’re not just adding square metres - you’re adding value and versatility.
- Property value uplift: A high-quality secondary dwelling makes your property stand out.
- Rental appeal: Designer spaces attract higher rents and more reliable tenants.
- Lifestyle flexibility: Perfect for guests, teenagers, grandparents, or even as a home office or studio.
- Future-proofing: Better design ensures your granny flat remains timeless and functional.

Key Design Trends in Melbourne & Sydney
Design trends are evolving, and granny flats are no exception. In Melbourne, natural materials, minimalist interiors, and clever use of small spaces are leading the way. Sydney homeowners are embracing modern coastal styles, with bright interiors and outdoor connections. Across both cities, we’re also seeing:
- Open-plan living that makes compact spaces feel larger.
- Indoor-outdoor flow with sliding doors and covered decks.
- Heritage-sensitive designs in areas with character overlays.
Costs & Approvals
Designer granny flats do come at a higher upfront investment compared to off-the-shelf models, but the long-term returns make them worthwhile.
- Typical costs: Depending on size and finishes, expect a range that reflects premium materials and architectural input.
- Approvals:
- In NSW, complying development pathways can speed up approvals if you meet criteria.
- In Victoria, granny flats under certain sizes may not require a planning permit - but council rules vary.
- Hidden costs: Landscaping, site works, and service connections should always be factored in.
(For precise advice, we guide you through both cost planning and approval pathways.)

Case Studies
At Pleysier Perkins Mini Homes, we’ve designed granny flats that range from compact studios to spacious two-bedroom retreats. Each reflects our belief that small spaces deserve big ideas.
Our Signature Designer Models
The Edge
A bold, minimalist design with clean lines and an emphasis on open-plan living.
The Popstar
Playful yet sophisticated, with flexible spaces ideal for creative lifestyles.
The Wedge
Dramatic sculptural form, perfect for narrow sites where design ingenuity is essential.
The Loft
Set on an efficient square footprint, featuring a mezzanine bedroom on top of the bathroom and a double height living space.
Recent Custom Designs include
- Inner-city Melbourne: Little Billy House is a custom-designed, flexible studio/sleepout with ensuite and an adjacent terrace for parking and outdoor entertaining.
- Outer Melbourne: Studio Camberwell is also a custom-designed rural, 1-bedroom retreat with playful form and materiality.
Every project has been tailored to the client, site conditions, and lifestyle requirements.
Frequently Asked Questions
- How much does a designer granny flat cost in Sydney?
Costs vary, but premium designs typically start higher than pre-fab builds. The return on investment often offsets this.
- Do I need a planning permit in Melbourne?
In many cases, yes, but the new regulations are being progressively adopted by local councils. Some smaller granny flats, being under a certain size and not including plumbing, may in fact not need either a building nor planning permit. We always check with local councils first.
- What’s the maximum size allowed?
In Victoria and NSW, granny flat sizes are usually capped (e.g. 60m²), though there are exceptions depending on zoning and lot size.
Why Aren't More Granny Flats Designer?
The demand for designer granny flats in Australia is rising steadily, reflecting a societal shift toward versatile, smaller-scale living solutions.
More families are seeking modern, well-designed granny flats to accommodate aging relatives, young adults, or even to generate rental income. Surprisingly though, very few of these homes are designed by architects! This fact highlights a significant gap in the market for thoughtfully crafted, architect-designed small homes.
So why aren't more architects involved in this growing niche? The answer lies in several unique challenges that traditional architectural practices face when dealing with contemporary granny flat design.

The design of small-scale projects like granny flats requires just as much creativity, precision, and client engagement as larger projects. Despite their smaller footprint, these well-designed granny flats demand intricate planning, careful use of space, and compliance with local council regulations.
This means that the financial return of designing a granny flat on a standalone basis often does not match the time and effort invested by architects. In traditional architectural practices, where profit margins depend on larger-scale commissions, it becomes difficult to justify dedicating resources to a single granny flat.
Such architects & designers often prioritise larger residential homes, commercial buildings, infrastructure projects, or other volume builds, where the returns are higher and the project scope is more aligned with the traditional architecture business model. Also, architects who are accustomed to designing one-off homes may lack the necessary experience to navigate the complexities of mass production.
Architecturally designed granny flats thrive on scalability and efficiency, and this can be witnessed in other countries, such as the US, where companies like Cover and Samara are doing well.
Producing high-quality granny flats as a profitable enterprise therefore requires not only this architectural skill, but logistical expertise, manufacturing partnerships, and ultimately an in-depth understanding of marketing, branding, and excellent customer service.
What Is The Best Fabrication Method For Designer Granny Flats?
Prefabrication is becoming a key component in the efficient production of designer granny flats. Prefabrication involves designing components or entire sections of the home in a controlled factory environment before assembling them on-site. This approach differs significantly from traditional, on-site construction.
In the case of modular construction, often the entire granny flat is constructed in the factory, and then transported to the site and installed as modules. The alternative to this is the "kit of parts" approach, which often involves a panelised system. Both modular and kit systems are robust and can achieve excellent results.