Room for Bigger Granny Flats

The rules have changed. The opportunities have grown. And that unused part of your backyard might now have more potential than you realise.

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Victoria Just Made Room for Bigger Granny Flats — Could Your Backyard Be Next?

The rules have changed. The opportunities have grown. And that unused part of your backyard might now have more potential than you realise.

For years, Melbourne homeowners have looked at their backyards and imagined something more: a beautiful home for ageing parents, a private residence for adult children or a second property that could generate rental income.

Amendment VC306 on 15 October 2026, Victoria

Now, Victoria’s latest planning reforms have opened the door to larger small second dwellings.

On 15 October 2026, Amendment VC306 increased the maximum floor area of qualifying small second dwellings from 60 m² to 80 m².

That’s an additional 20 m² of potential internal living space — a 33% increase in the previous limit.

And for Melbourne homeowners, it could make a substantial difference to how they use their property.

What do the new rules actually mean?

A small second dwelling is a self-contained home built on the same property as an existing residence.

It needs its own essential living facilities, including food preparation facilities, a kitchen sink, a bathroom, and a toilet.

Under Victoria’s updated planning provisions:

Qualifying second dwellings can have up to 80 m² of floor area.
Many properties in residential zones of 300 m² or more may not require a separate planning permit.
A dedicated parking space is not required for the small second dwelling.
The residence can accommodate relatives or unrelated occupants.
It can potentially be rented to tenants.
A building permit is still required.
The small second dwelling cannot be separately subdivided and sold from the main property under these provisions.

Specific site conditions, zoning restrictions, overlays and other planning requirements still apply.

The maximum size is measured according to the legal floor-area definition. It is not simply a measure of the usable space inside the rooms.

Why an extra 20 m² matters

Twenty square metres can make the difference between a compact residence and a home with more flexibility.

It could allow for a larger living area, better circulation, additional storage or a layout that suits changing family needs.

But bigger isn’t always better.

A thoughtfully designed 44 m² home may be more appropriate for a particular property than a larger structure that dominates the garden.

That’s where intelligent design comes in.

Introducing Kinspace Garden Residences

Kinspace, built by Builtfast Homes in Pakenham, offers purpose-designed secondary residences for Melbourne properties.

The Kinspace Garden Residence is a premium single-level, one-bedroom home, offering 44 m² of interior space, a generous connection to the garden, a separate bedroom, full kitchen, bathroom and integrated laundry.

The Kinspace Garage Residence takes a different approach: a private one-bedroom home above secure double garaging, allowing homeowners to accommodate an additional residence while retaining valuable space beneath.

Each solution is designed around how the property will actually be used.

Is your property suitable?

Before choosing a residence, consider your available land, the location of the existing house, access for installation, easements, services, slope, trees and planning overlays.

A 400 m² property with a clear side access path may present very different possibilities from a larger property with restricted access or protected trees.

The best starting point is an individual feasibility assessment, not an assumption based only on block size.

Your backyard could have a bigger future

The 80 m² reform makes this an excellent time to reconsider the possibilities of your property.

Whether you’re planning for family, future flexibility or rental income, a second residence could change how your home supports your lifestyle.

Discover what your property could accommodate.

Speak with Kinspace about your block, preferred design and intended use.

Check Whether a Kinspace Residence Will Fit Your Block

Planning information reflects Victorian rules introduced in October 2026. Development remains subject to relevant approvals, building requirements and individual site assessment.