Granny Flat Rules in NSW: What You Can & Can’t Build

Before building a granny flat in Sydney, it’s essential to understand the NSW rules. This guide breaks down everything you need to know — block size, setbacks, approvals and design requirements.

Minimum Requirements for a Granny Flat in NSW

1. Minimum Lot Size

Your block must be 450m² or larger.

2. Maximum Size

Granny flats can be up to:

  • 60m² internal floor area

  • Some councils allow more under DA

    Setback Requirements

    Typical setbacks include:

    • 3m from rear boundary

    • 0.9m–1.5m from side boundaries

    • Distance from main dwelling (varies by council)

    Approval Pathways

    CDC (Complying Development Certificate)

    Fastest option — often approved in 2–4 weeks.

    DA (Development Application)

    Required for:

    • Irregular blocks

    • Flood zones

    • Bushfire zones

    • Larger designs

    Learn more: Design & Drafting Sydney

    What You Can Build

    • 1 or 2 bedrooms

    • Kitchen

    • Bathroom

    • Laundry

    • Living area

    • Outdoor deck

    • Separate entrance

      What You Can’t Build

      • More than 60m² internal space (CDC)

      • Two‑storey granny flats (CDC)

      • Granny flats on strata lots

      • Granny flats without street access

        Common Compliance Issues

        • Building too close to boundaries

        • Incorrect drainage

        • Non‑compliant windows

        • Overlooking/privacy issues

          Start Your Granny Flat Project With Confidence

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How Much Does a Granny Flat Cost in Sydney? (2026 Pricing Guide)