by Sanjeev Sah | Nov 07, 2023 | Market Updates

Building granny flats could be a solution to Australia’s housing crisis, according to new CoreLogic research.  

The study found 655,000 properties in Sydney, Melbourne and Brisbane with sufficient space to construct a two-bedroom granny flat. 

Notably, over one-third of these suitable sites are within 2km of a train station, and 17% are in the same suburb as a hospital. 

Tim Lawless, CoreLogic’s research director, said granny flats offer a cost-effective way to increase housing near existing infrastructure. They also provide financial and lifestyle benefits for property owners who meet planning criteria. 

“Adding a granny flat accommodates extra living space for extended family, multi-generational households or rental purposes, thereby boosting a property’s value and potentially creating extra income for rising living costs,” he said.  

“CoreLogic figures show an extra two bedrooms, and an additional bathroom could add around 32% to the value of an existing dwelling. For a house worth $500,000, the addition of a granny flat has the potential to add approximately $160,000 to the value of the property.”