News & Updates
July 2026
There's been a growing surge in demand for granny flats and small second dwellings across Australia, driven by housing pressures, potential rental returns and planning reforms that are making secondary homes easier to build. In Victoria, homeowners can now build a Small Second Dwelling of up to 60m², including a kitchen and bathroom, and rent it to anyone, with a planning permit generally not required. These changes, alongside greater financing support from banks, are making backyard dwellings an increasingly attractive option for both homeowners and property investors.
July 2026
The risks of DIY flat-pack and prefabricated homes has been exposed, after a WA homeowner’s $26,000 kit potentially doubled in cost due to modifications needed to meet Australian building standards and council requirements. It warns buyers to be cautious of claims that these homes are “permit-free” or can simply be built in a weekend, particularly where imported components may not comply with Australian standards.
June 2026
Granny flat demand is surging across Queensland as the housing crisis, rising mortgage costs and multigenerational living encourage homeowners to seek more flexible housing options. Searches have risen by more than 50% year-on-year, while builders are expecting to construct around 10 times more granny flats in 2026 than in 2022, supported by changes to planning rules that make secondary dwellings easier to build.
June 2026
Under proposed changes to Australia’s negative gearing rules, granny flats built alongside an established property would not qualify as eligible new builds for negative gearing. The clarification comes as granny flats continue to grow in popularity as an alternative housing option and a potential way to increase housing supply during Australia’s housing shortage.
October 2023
Research identified more than 650,000 properties across Sydney, Melbourne and Brisbane with the potential to accommodate a granny flat, highlighting a significant opportunity to add housing without developing new land. Melbourne alone had almost 230,000 suitable sites, with the Mornington Peninsula offering the highest potential in Melbourne at 23,870 sites. Granny flats were highlighted as a relatively quick and cost-effective way to increase housing supply while giving homeowners options for family accommodation, rental income and increased property value.