A granny flat in Sydney costs between $130,000 and $250,000 in 2026. Most standard two bedroom builds on a flat, easy block land between $145,000 and $200,000 turnkey. Where a project ends up inside that range comes down to 3 things: the size, the finish level, and what your particular block does to the cost before a single wall goes up.
That last one is where most people get caught out, so this guide covers it properly.
Published 2026 Sydney cost guides put the all-in range at roughly $130,000 to $250,000, with per-square-metre rates between $2,200 and $3,300 for a medium to high specification brick veneer build.
For reference, BlueGum’s published starting price is from $134,990 turnkey.
Two things worth understanding about these numbers before you go any further.
Smaller does not mean proportionally cheaper. A granny flat has one kitchen, one bathroom, and one set of service connections whether it is 40 m² or 60 m². Those fixed costs get spread across fewer square metres on a small build, which is why the per-square-metre rate on a studio is usually higher than on a 2 bedroom. Going from 45 m² to 60 m² often adds far less than you would expect, because you are only adding floor, walls and roof, not another bathroom.
60 m² is a legal ceiling, not a design choice. Under the NSW Housing SEPP 2021, a secondary dwelling is capped at 60 m² of floor area unless another planning instrument covering your land allows more. So a “3 bedroom granny flat” in Sydney means 3 bedrooms squeezed inside the same 60 m² as a 2 bedroom, not a bigger building.
This is the single biggest source of quote-to-quote variation, and it is the part that has nothing to do with the building itself.
None of these are unusual. Most Sydney blocks have at least one. A quote given before anyone has looked at your specific site is an estimate dressed up as a price.
Two approval pathways exist in NSW and they cost differently.
We cover the difference in detail in our guide to CDC and DA approval. The short version for budgeting: assume CDC if your block is straightforward, and build in a contingency for DA if there is anything unusual about your site.
Turnkey should mean you can unlock the door and move in. In practice it is used loosely. Two quotes with the same headline number can differ by $30,000 once you read what each one covers.
Ask specifically about: driveway and paths, fencing, letterbox and clothesline, floor coverings throughout, window furnishings, air conditioning, landscaping and turf, and the connection of water, sewer, power and NBN. If the quote does not name them, assume they are not in it.
Published guides put these additional items at roughly $14,000 to $41,000 on top of the build, depending on the site.
A quote that shows a single number with none of this named is not a complete picture of what you will spend.
A ballpark price over the phone is worth very little, because the person giving it has not seen the thing that determines the price. What is worth asking for is a fixed price quote that follows a site inspection, with the inclusions listed line by line and the exclusions stated plainly.
If a builder will not put exclusions in writing, that is the answer to your question.
Published 2026 guides start around $120,000 for a studio or one bedroom on a flat, straightforward block with easy access. Anything materially below that usually signals either a small footprint, a lower specification, or a quote with significant exclusions that will surface later as variations.
Almost always because they are pricing different scopes, not different buildings. One includes floor coverings, driveway, fencing and connections, the other lists them as exclusions. Put both quotes side by side and compare the inclusion lists before you compare the totals.
No. The kitchen, bathroom and service connections cost the same at 40 m² as at 60 m², so those fixed costs are spread thinner as the building grows. Going from 45 m² to the 60 m² cap often costs less per additional square metre than the rest of the build.
It depends on the builder. Some quote the build only and leave you to arrange approval, others manage the approval and include it. BlueGum manages both CDC and DA approvals in-house. Ask any builder to state clearly which model they are quoting, because it changes the comparison.
For a site that has been properly inspected and quoted at a fixed price, a smaller contingency is reasonable. For a quote given without a site inspection, treat the number as provisional and expect movement once someone actually looks at the block.
Every figure on this page is a market range. The only number that matters is the one for your address, and that requires someone to look at your slope, soil, access and services.
Check whether your block qualifies, or call BlueGum on 1300 060 651 to arrange a site assessment.
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
