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Granny Flat ROI by Suburb — Melbourne Investment Returns

Ranked granny flat returns for 409 Victorian suburbs: modelled build outlay, net weekly rent uplift, gross yield on outlay, payback years and the share of lots clearing the 300m² small-second-dwelling minimum. Built from Valuer-General medians, Vicmap parcel boundaries and PremiumRea's 2026 build schedule — by a Melbourne buyers agent.

By Joey Don · Co-Founder & CEO·Updated ·Data: Valuer-General VIC Q2 2025 · Vicmap parcels · PremiumRea 2026 build schedule

All suburbs, ranked

Showing 100 of 330 suburbs · Click a column header to re-sort. Default: payback (ascending), then yield uplift.
#Model
1Melton3337$510K81%$202,400+$470/wk12.1%+3.43pp8.3 yrsModel it →
2Yea3717$525K96%$202,400+$470/wk12.1%+3.36pp8.3 yrsModel it →
3Melton South3338$526K85%$202,400+$470/wk12.1%+3.36pp8.3 yrsModel it →
4Kurunjang3337$551K89%$202,400+$470/wk12.1%+3.24pp8.3 yrsModel it →
5Melton West3337$564K91%$202,400+$470/wk12.1%+3.19pp8.3 yrsModel it →
6Kilmore3764$590K94%$202,400+$470/wk12.1%+3.08pp8.3 yrsModel it →
7Brookfield3338$590K91%$202,400+$470/wk12.1%+3.08pp8.3 yrsModel it →
8Wyndham Vale3024$590K80%$202,400+$470/wk12.1%+3.08pp8.3 yrsModel it →
9Cobblebank3338$603K76%$202,400+$470/wk12.1%+3.04pp8.3 yrsModel it →
10Cobblebank - Strathtulloh3338$603K76%$202,400+$470/wk12.1%+3.04pp8.3 yrsModel it →
11Laverton3026$605K74%$202,400+$470/wk12.1%+3.03pp8.3 yrsModel it →
12Bacchus Marsh3340$617K92%$202,400+$470/wk12.1%+2.98pp8.3 yrsModel it →
13Rockbank3024$621K78%$202,400+$470/wk12.1%+2.97pp8.3 yrsModel it →
14Broadmeadows3047$620K68%$202,400+$470/wk12.1%+2.97pp8.3 yrsModel it →
15Doveton3177$630K69%$202,400+$470/wk12.1%+2.94pp8.3 yrsModel it →
16Wallan3658$640K87%$202,400+$470/wk12.1%+2.90pp8.3 yrsModel it →
17Werribee3030$641K83%$202,400+$470/wk12.1%+2.90pp8.3 yrsModel it →
18Manor Lakes$650K82%$202,400+$470/wk12.1%+2.87pp8.3 yrsModel it →
19Kings Park3021$653K91%$202,400+$470/wk12.1%+2.86pp8.3 yrsModel it →
20Hoppers Crossing3029$660K86%$202,400+$470/wk12.1%+2.83pp8.3 yrsModel it →
21Tarneit3029$665K83%$202,400+$470/wk12.1%+2.82pp8.3 yrsModel it →
22Meadow Heights3048$670K85%$202,400+$470/wk12.1%+2.80pp8.3 yrsModel it →
23Truganina3029$671K79%$202,400+$470/wk12.1%+2.80pp8.3 yrsModel it →
24Frankston North3199$670K76%$202,400+$470/wk12.1%+2.80pp8.3 yrsModel it →
25Hampton Park3976$675K85%$202,400+$470/wk12.1%+2.79pp8.3 yrsModel it →
26Diggers Rest3427$675K84%$202,400+$470/wk12.1%+2.79pp8.3 yrsModel it →
27Sunbury3429$675K83%$202,400+$470/wk12.1%+2.79pp8.3 yrsModel it →
28Deer Park3023$680K87%$202,400+$470/wk12.1%+2.77pp8.3 yrsModel it →
29St Albans3021$680K77%$202,400+$470/wk12.1%+2.77pp8.3 yrsModel it →
30Campbellfield3061$679K77%$202,400+$470/wk12.1%+2.77pp8.3 yrsModel it →
31Campbellfield - Coolaroo3061$679K77%$202,400+$470/wk12.1%+2.77pp8.3 yrsModel it →
32Roxburgh Park3064$683K87%$202,400+$470/wk12.1%+2.76pp8.3 yrsModel it →
33Delahey3037$689K89%$202,400+$470/wk12.1%+2.74pp8.3 yrsModel it →
34Pakenham3810$690K81%$202,400+$470/wk12.1%+2.74pp8.3 yrsModel it →
35Koo Wee Rup3984$695K84%$202,400+$470/wk12.1%+2.72pp8.3 yrsModel it →
36Fraser Rise3335$695K78%$202,400+$470/wk12.1%+2.72pp8.3 yrsModel it →
37Macedon3440$700K94%$202,400+$470/wk12.1%+2.71pp8.3 yrsModel it →
38Cranbourne West3977$700K79%$202,400+$470/wk12.1%+2.71pp8.3 yrsModel it →
39Cranbourne South3977$700K78%$202,400+$470/wk12.1%+2.71pp8.3 yrsModel it →
40Craigieburn3064$700K76%$202,400+$470/wk12.1%+2.71pp8.3 yrsModel it →
41Mickleham3064$700K74%$202,400+$470/wk12.1%+2.71pp8.3 yrsModel it →
42Bannockburn3331$707K98%$202,400+$470/wk12.1%+2.69pp8.3 yrsModel it →
43Romsey3434$705K91%$202,400+$470/wk12.1%+2.69pp8.3 yrsModel it →
44Eynesbury3338$705K85%$202,400+$470/wk12.1%+2.69pp8.3 yrsModel it →
45Wollert3750$705K72%$202,400+$470/wk12.1%+2.69pp8.3 yrsModel it →
46Cranbourne3977$714K79%$202,400+$470/wk12.1%+2.67pp8.3 yrsModel it →
47Sunshine West3020$713K72%$202,400+$470/wk12.1%+2.67pp8.3 yrsModel it →
48Riddells Creek3431$720K94%$202,400+$470/wk12.1%+2.65pp8.3 yrsModel it →
49Hastings3918$725K87%$202,400+$470/wk12.1%+2.64pp8.3 yrsModel it →
50Mernda3754$725K86%$202,400+$470/wk12.1%+2.64pp8.3 yrsModel it →
51Epping3076$723K79%$202,400+$470/wk12.1%+2.64pp8.3 yrsModel it →
52Cranbourne East3977$730K81%$202,400+$470/wk12.1%+2.62pp8.3 yrsModel it →
53Altona Meadows3028$730K79%$202,400+$470/wk12.1%+2.62pp8.3 yrsModel it →
54Whittlesea3757$735K81%$202,400+$470/wk12.1%+2.61pp8.3 yrsModel it →
55Clyde North3978$736K78%$202,400+$470/wk12.1%+2.61pp8.3 yrsModel it →
56Lalor3075$738K80%$202,400+$470/wk12.1%+2.60pp8.3 yrsModel it →
57Hallam3803$740K78%$202,400+$470/wk12.1%+2.59pp8.3 yrsModel it →
58Ardeer3020$742K73%$202,400+$470/wk12.1%+2.59pp8.3 yrsModel it →
59Ardeer - Albion3020$742K73%$202,400+$470/wk12.1%+2.59pp8.3 yrsModel it →
60Braybrook3019$743K64%$202,400+$470/wk12.1%+2.59pp8.3 yrsModel it →
61Seabrook3028$745K89%$202,400+$470/wk12.1%+2.58pp8.3 yrsModel it →
62Caroline Springs3023$750K88%$202,400+$470/wk12.1%+2.57pp8.3 yrsModel it →
63Heidelberg West3081$750K64%$202,400+$470/wk12.1%+2.57pp8.3 yrsModel it →
64Doreen3754$753K91%$202,400+$470/wk12.1%+2.56pp8.3 yrsModel it →
65Sydenham3037$751K81%$202,400+$470/wk12.1%+2.56pp8.3 yrsModel it →
66Gladstone Park3049$752K73%$202,400+$470/wk12.1%+2.56pp8.3 yrsModel it →
67Rosebud3939$756K83%$202,400+$470/wk12.1%+2.55pp8.3 yrsModel it →
68Sunshine North3020$755K78%$202,400+$470/wk12.1%+2.55pp8.3 yrsModel it →
69Thomastown3074$755K78%$202,400+$470/wk12.1%+2.55pp8.3 yrsModel it →
70Dandenong3175$755K74%$202,400+$470/wk12.1%+2.55pp8.3 yrsModel it →
71Belgrave3160$760K95%$202,400+$470/wk12.1%+2.54pp8.3 yrsModel it →
72Belgrave - Selby3160$760K95%$202,400+$470/wk12.1%+2.54pp8.3 yrsModel it →
73Cranbourne North3977$771K90%$202,400+$470/wk12.1%+2.51pp8.3 yrsModel it →
74Carrum Downs3201$775K80%$202,400+$470/wk12.1%+2.50pp8.3 yrsModel it →
75Kinglake3763$780K98%$202,400+$470/wk12.1%+2.49pp8.3 yrsModel it →
76Burnside Heights3023$780K89%$202,400+$470/wk12.1%+2.49pp8.3 yrsModel it →
77Healesville3777$793K92%$202,400+$470/wk12.1%+2.46pp8.3 yrsModel it →
78Bunyip3813$792K91%$202,400+$470/wk12.1%+2.46pp8.3 yrsModel it →
79Bunyip3814$792K91%$202,400+$470/wk12.1%+2.46pp8.3 yrsModel it →
80Bunyip - Garfield3814$792K91%$202,400+$470/wk12.1%+2.46pp8.3 yrsModel it →
81Somerville3912$790K89%$202,400+$470/wk12.1%+2.46pp8.3 yrsModel it →
82Narre Warren3805$790K86%$202,400+$470/wk12.1%+2.46pp8.3 yrsModel it →
83Dandenong North3175$790K83%$202,400+$470/wk12.1%+2.46pp8.3 yrsModel it →
84Monbulk3782$795K98%$202,400+$470/wk12.1%+2.45pp8.3 yrsModel it →
85Kyneton3444$797K96%$202,400+$470/wk12.1%+2.45pp8.3 yrsModel it →
86Endeavour Hills3802$795K81%$202,400+$470/wk12.1%+2.45pp8.3 yrsModel it →
87Point Cook3030$800K89%$202,400+$470/wk12.1%+2.44pp8.3 yrsModel it →
88Burnside3023$798K89%$202,400+$470/wk12.1%+2.44pp8.3 yrsModel it →
89Tullamarine3043$800K73%$202,400+$470/wk12.1%+2.44pp8.3 yrsModel it →
90Fawkner3060$801K70%$202,400+$470/wk12.1%+2.44pp8.3 yrsModel it →
91South Morang3752$805K83%$202,400+$470/wk12.1%+2.43pp8.3 yrsModel it →
92Derrimut3026$807K84%$202,400+$470/wk12.1%+2.42pp8.3 yrsModel it →
93Noble Park North3174$807K70%$202,400+$470/wk12.1%+2.42pp8.3 yrsModel it →
94Frankston3199$810K77%$202,400+$470/wk12.1%+2.41pp8.3 yrsModel it →
95Skye3977$817K82%$202,400+$470/wk12.1%+2.40pp8.3 yrsModel it →
96Hadfield3046$816K56%$202,400+$470/wk12.1%+2.40pp8.3 yrsModel it →
97Narre Warren South3805$820K87%$202,400+$470/wk12.1%+2.39pp8.3 yrsModel it →
98Noble Park3174$820K66%$202,400+$470/wk12.1%+2.39pp8.3 yrsModel it →
99Sunshine3020$823K72%$202,400+$470/wk12.1%+2.38pp8.3 yrsModel it →
100Glenroy3046$825K55%$202,400+$470/wk12.1%+2.38pp8.3 yrsModel it →

Check a specific lot

This page ranks suburbs. For one address, run the free siting planner (fences, easements, driveway access, overlay triggers) and model the full cashflow with your own numbers.

Methodology & sources

Eligibility rule — Victoria's Amendment VC253 (small second dwelling, in force since Dec 2023): a granny flat of up to 60m² needs no planning permit on a lot of at least 300m² in a residential zone, provided no overlay (Heritage, Bushfire Management, flood/inundation, etc.) triggers one. The "Lots ≥300m²" column is the share of non-sliver parcels in the suburb cadastre clearing that minimum — an upper-bound screen that includes non-residential lots, not a per-lot feasibility result.

Sources — median house prices: Valuer-General Victoria (latest Q2 2025); parcel boundaries: Vicmap Property via DEECA open data; build costs, paperwork and granny rents: PremiumRea's 2026 schedule (the same figures our due-diligence reports use — VIC metro 60m²: $170k build ex-GST + 10% GST + $15.4k paperwork ≈ $202k all-in, $520/wk granny rent).

Formulas — net weekly uplift = granny rent − $50/wk main-house rent adjustment (shared land); gross yield on outlay = net uplift × 52 ÷ outlay; yield uplift = net uplift × 52 ÷ (median house price + outlay), in percentage points; payback years = outlay ÷ (net uplift × 52). All figures are modelled estimates — no capital-growth projections anywhere on this page.

Reading the ranking — build cost and granny rent follow a metro / regional-VIC schedule rather than varying suburb by suburb, so payback and yield-on-outlay are class-level figures; the per-suburb differences show up in the yield-uplift column (driven by the median price you are buying into) and the eligible-lot share. Suburbs outside the serviced footprint (80km of Melbourne + Geelong / Ballarat / Latrobe corridors) are flagged — the schedule is an extrapolation there.

Granny flat ROI — common questions

How much does a granny flat cost to build in Melbourne?

On PremiumRea's 2026 schedule a 60m² unit in metro Melbourne is $170k ex-GST plus 10% GST and about $15.4k of permits and paperwork — roughly $202k all-in. A 30m² unit lands around $134k. Regional VIC (Geelong, Ballarat, Latrobe) adds a builder travel fee.

How much rent does a granny flat add?

We model $520/wk for a 60m² unit in metro Melbourne ($350/wk for 30m²), less a $50/wk adjustment on the main house for the shared land — about $470/wk of net uplift, or $24k a year.

What are the rules for building a granny flat in Victoria?

Since Amendment VC253 (Dec 2023), a small second dwelling up to 60m² on a lot of 300m² or more in a residential zone needs a building permit but no planning permit — unless an overlay (Heritage, Bushfire Management, flood) applies. Setbacks, easements and site coverage still apply; our free site planner checks a specific lot.

Which Melbourne suburbs are best for a granny flat investment?

On pure cashflow, cheaper outer-ring suburbs with large lots dominate: the build cost is the same but it lands on a much smaller purchase price, so the yield uplift is 3-4× what it is in blue-chip suburbs like Toorak or Balwyn. Melton, Melton South, Kurunjang and the Cranbourne corridor top our ranking; the table above lets you sort all suburbs yourself.

All figures on this page are modelled estimates from suburb-level medians and a standard build schedule — not a quote, valuation, forecast or financial advice. Whether a granny flat can actually be built on a given lot depends on a site assessment (overlays, easements, setbacks, services, access) and council/building approval. Obtain licensed financial, legal and building advice before acting.

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