A BlueGum granny flat costs $118,990 to $186,000 in 2026, before site costs and approvals.
36 m² studio from $118,990
39 to 50 m² 1-bedroom from $125,000
60 m² 2-bedroom from $134,990
The estimated price ranges above covers all standard construction costs from start to finish, including site preparation, foundations, framing, roofing, external finishes, kitchen and bathroom installations, internal linings, flooring and final site clean-up. They also allow for typical site-specific construction requirements and service connections. Plans, approvals and council fees are in addition to the build estimate. As a general rule, plans and approvals, council fees and non-standard site-specific works typically add $14,000 to $39,000 to the build price. Once your plans have been finalised and approved, our team will provide a comprehensive, fixed-price building proposal tailored to your project.
2 bedrooms or 3?
In NSW, granny flats are generally limited to 60 m², regardless of how many bedrooms they have. Adding a third bedroom doesn’t mean a bigger granny flat. It means making better use of the available space, often at the expense of bedroom sizes and living areas.
Our advice? Think carefully about how you’ll use the space. Sometimes, a well-designed 2-bedroom granny flat can offer more comfort, practicality and flexibility than a 3-bedroom layout.
Does a smaller granny flat cost less?
Not necessarily! Whether you’re building a 1-bedroom or 2-bedroom granny flat, many of the construction costs remain the same, including the kitchen, bathroom and essential service connections.
Our advice? A larger granny flat can offer better value for money. The additional floor space often costs considerably less per square metre, giving you more usable space for a relatively small increase in your overall investment. Our per-square-metre guide goes through the maths.
Published 2026 Sydney cost guides put a granny flat at $130,000 to $250,000 all in. Per square metre, that is $2,200 to $3,300 for a medium to high specification brick veneer build. Those are guide figures, not quotes from any builder, so treat them as the shape of the market rather than a price.
Against that, BlueGum’s studio starts $11,010 under the published market floor, and the top of our 3-bedroom range is $64,000 under the market top. The reason is not a cheaper building. It is that we build one thing, granny flats in Sydney, on the same designs, with the same trades, and have since 2012.
Here are some of the common costs worth considering when planning your budget. Once we’ve assessed your property, we’ll help you understand which of these may apply to your project.
Not all of these costs will apply to your property. As a general rule, plans and approvals, council fees and non-standard site-specific works typically add $14,000 to $39,000 to the build price. Our experienced team will assess your site, identify the relevant requirements and help you understand the costs involved before proceeding. Our hidden costs guide explains what each one is and why it moves.
Turnkey should mean you can unlock the door and move in. In practice the word is used loosely, and 2 quotes with the same headline number can differ by $30,000 once you read what each one covers.
Whoever you are talking to, ask about these by name:
If the quote does not name an item, it is not in it. Our inclusions are listed above and in writing on every quote.
This is the biggest source of quote-to-quote variation, and it has nothing to do with the building.
| Site factor | What it does to the cost |
|---|---|
| Flat, clear, good access | Nothing. This is the block every advertised price assumes. |
| Slope | Cut and fill, retaining walls, stepped footings. Can add tens of thousands. |
| Rock | Rock excavation is charged by volume. The most common budget blowout in Sydney. |
| Reactive soil | Clay that moves means a heavier engineered slab. |
| Narrow or blocked access | If a truck and an excavator cannot get in, the work goes to smaller machines or by hand. |
| Distance to sewer and stormwater | Long runs, or a sewer main under the build area that needs diverting. |
| Trees | Removal, an arborist report, and root zones that force the building to move. |
| Bush fire or flood affected | Extra construction standards, and usually rules out the fast approval path. |
None of these are unusual. Most Sydney blocks have at least one. A price given before anyone has looked at your block is an estimate dressed up as a quote.
NSW has 2 approval paths and they cost differently.
CDC (complying development)
Assessed by: A private certifier
Cost: Lower
Time: Weeks
Available when: Your block meets every standard in the SEPP
DA (development application)
Assessed by: Your local council
Cost: Higher, plus council fees and often extra consultant reports
Time: Months
Available when: Your block does not, or it is flood, heritage or bush fire affected
The CDC or DA guide covers the difference in detail, and there is a separate page on what happens if your block does not meet CDC standards. For budgeting: assume CDC if your block is straightforward, and keep a contingency for DA if anything about the site is unusual. BlueGum manages both paths in-house, so you do not arrange the approval yourself.
Our advice? Be cautious of building quotes provided without a proper site assessment. Every property is different, and site conditions can significantly affect the final construction cost.
Look for a builder who provides a detailed, fixed-price proposal that clearly outlines what’s included, what’s excluded and any additional costs you may need to consider. Transparency from the beginning helps avoid unexpected expenses later.
If you are building to rent, our rental yield guide puts these prices against Sydney rents by council. If you are working out how to pay for it, start with how to finance a granny flat.
A 2-bedroom BlueGum granny flat costs $134,990 to $174,000 in 2026 for the base build, at 60 m². Plans, approvals, council fees and non-standard site works are on top, usually $14,000 to $39,000 depending on the block. Our 2-bedroom page has the designs and floor plans.
A BlueGum studio starts at $118,990 for 36 m². Anything much below that, from any builder, tends to mean a smaller footprint, a lower specification, or a quote with exclusions that come back later as variations.
Almost always because they are pricing different scopes, not different buildings. One has floor coverings, driveway, fencing and connections in the number, the other lists them as exclusions. Put the 2 inclusion lists side by side before you compare the totals.
No. The kitchen, bathroom and connections cost the same at 36 m² as at 60 m², so the fixed costs spread thinner as the building grows. The bottom of our 2-bedroom range is $9,990 above the bottom of our 1-bedroom range, for 15 m² more.
Not in Sydney. Both sit inside the 60 m² cap in the NSW Housing SEPP. The third bedroom comes out of the living space. That is why our 3-bedroom designs start $10,010 above the 2-bedroom, and why the layout matters more than the size.
Approval fees sit outside the build price with the other site costs, and we quote them after the inspection. BlueGum manages both CDC and DA approvals in-house. If you are comparing builders, ask each one whether they manage the approval or leave it to you, because it changes the comparison.
For a block that has been inspected and quoted at a fixed price, a small contingency is enough. For a number given without a site inspection, treat it as provisional and expect it to move once someone looks at the block.
Every figure on this page is a range. The number that matters is the one for your address, and that needs someone to look at your slope, soil, access and services.
Check whether your block qualifies, or call BlueGum on 1300 060 651 to book a site assessment. You get a fixed price with the inclusions listed line by line.
Or call our team on 1300 060 651
Building granny flats since
Since 2012
Builder licence
247388C, verifiable through NSW Fair Trading
Industry body
Housing Industry Association member
MBA NSW Excellence in Housing Awards
Winner 2021, Winner 2023, Finalist 2020
Completed granny flats documented on this site
70+
Approvals
CDC and DA, both managed in-house
Pricing
Fixed price after a site assessment, 2-bedroom from $134,990
Building granny flats since
Since 2012
Builder licence
247388C, verifiable through NSW Fair Trading
Industry body
Housing Industry Association member
MBA NSW Excellence in Housing Awards
Winner 2021, Winner 2023, Finalist 2020
Completed granny flats documented on this site
70+
Approvals
CDC and DA, both managed in-house
Pricing
Fixed price after a site assessment, 2-bedroom from $134,990
