What our analysis shows
Analysis by Granny Flat Numbers, data as of 23 October 2026
- A standard 60 m² two-bedroom flat comes to $193,000 in Hobart and $164,500 in Launceston or on the north-west coast. In Canberra the same flat costs $237,500, the highest of any capital in our model.
- Tasmanian tenants pay as much for a detached one-bedroom dwelling as for a flat, or more. In 8,219 new bonds from January–June 2026, Greater Hobart's detached one-bedroom median was $428 against $395 for a flat (+8%). In Sydney the same comparison showed a 24% discount.
- Launceston pays back fastest in Tasmania at 10.7 years: the regional build costs $29k less than in Hobart while two-bedroom detached rents are only $25 a week lower.
- A Canberra flat needs about $750 a week to pay back in 10 years after tax. Using the full 90 m² lifts that to $1,055.
Payback on a 60 m² two-bedroom flat
- Launceston (TAS)10.7 years
- Greater Hobart (TAS)11.9 years
- North-west coast (TAS)11.9 years
After agent fees, insurance, maintenance and tax at 30%, no loan. Rent: our medians of new Tasmanian bonds for detached 2-bedroom dwellings, January–June 2026. The ACT has no comparable public bond medians.
Tasmania: cost
| Line, 60 m² in Hobart | Cost |
|---|---|
| Construction | $158,400 |
| Site preparation (flat, easy access) | $12,000 |
| Sewer, water, power and stormwater connections | $10,000 |
| Design, engineering and BASIX/energy report | $8,000 |
| Approval: Building permit (no planning permit) | $4,500 |
| Total | $193,000 |
A secondary residence that meets the acceptable solutions is a permitted use in the General Residential zone, so the planning step is quick and cheap. It must share access and parking with the main dwelling, and many Hobart blocks are steep: on a sloping site our model adds $13k to $33k.
| Size | Budget | Standard | Premium | Standard, regional |
|---|---|---|---|---|
| Studio, 35 m² | $117,000 | $135,000 | $165,500 | $117,000 |
| 1 bed, 45 m² | $134,500 | $157,000 | $193,500 | $135,000 |
| 2 bed, 60 m² | $164,000 | $193,000 | $240,500 | $164,500 |
Tasmania: what tenants pay
Tasmania's Department of Justice publishes every bond with its suburb, dwelling type and bedrooms. We took all 8,219 bonds lodged January to June 2026 (private housing) and grouped them by region:
| Region | 1-bed detached | 1-bed flat | 2-bed detached | 2-bed flat |
|---|---|---|---|---|
| Greater Hobart (62 / 301 detached) | $428 | $395 | $520 | $500 |
| Launceston (27 / 151 detached) | $350 | $350 | $495 | $450 |
| North-west coast (22 / 82 detached) | $300 | $300 | $445 | $400 |
| All Tasmania (129 / 662 detached) | $370 | $370 | $490 | $480 |
Unlike Sydney, there is no granny flat discount here: detached one- and two-bedroom dwellings let for the same as flats or a little more. One likely reason: Tasmania has few new apartment blocks, so a small detached dwelling competes with older units rather than new towers. The detached one-bedroom samples are small outside Hobart, so treat those medians as indicative.
| Area | 1-bed rent | 2-bed rent | 60 m² build | Net yield | Payback |
|---|---|---|---|---|---|
| Launceston | $350 | $495 | $164,500 | 12.5% | 10.7 yrs |
| Greater Hobart | $428 | $520 | $193,000 | 11.1% | 11.9 yrs |
| North-west coast | $300 | $445 | $164,500 | 11.1% | 11.9 yrs |
If the 90 m² change goes through
A 90 m² flat would cost about $272,000 in Hobart, $79k more than 60 m². That size fits three bedrooms or a two-bedroom layout with room for a carer, which matters more for family use than for rent. For a rental, the two-bedroom rents above do not reward the extra 30 m²: the payback in Hobart rises from 11.9 to 16.5 years at the same rent.
ACT: cost
| Line, 60 m² in Canberra | Cost |
|---|---|
| Construction | $201,600 |
| Site preparation (flat, easy access) | $12,000 |
| Sewer, water, power and stormwater connections | $10,000 |
| Design, engineering and BASIX/energy report | $8,000 |
| Approval: Development application (compliant design) | $6,000 |
| Total | $237,500 |
Canberra's build rates run about 12% above Sydney's in the builder price lists we used, and every secondary residence needs a development application, then building approval. Since 1 July 2026 there is no minimum block size, so smaller blocks in established suburbs can now take a flat if the design meets the Territory Plan.
| Size | Budget | Standard | Premium | Standard, regional |
|---|---|---|---|---|
| Studio, 35 m² | $140,500 | $164,000 | $202,500 | $141,000 |
| 1 bed, 45 m² | $163,000 | $191,500 | $238,500 | $163,500 |
| 2 bed, 60 m² | $200,500 | $237,500 | $298,000 | $201,500 |
| 2 bed, 70 m² | $228,000 | $271,000 | $342,000 | $229,000 |
| 2–3 bed, 80 m² | $255,500 | $305,000 | $385,500 | $256,500 |
ACT: the rent you need
We could not find ACT bond medians by suburb and dwelling type in a public dataset, so here is the weekly rent each flat needs for a given payback after tax:
| Payback target | 45 m², 1 bed | 60 m², 2 bed | 90 m², 3 bed |
|---|---|---|---|
| 8 years | $755 | $930 | $1,315 |
| 10 years | $610 | $750 | $1,055 |
| 12 years | $510 | $625 | $880 |
| 15 years | $410 | $505 | $705 |
Compare these with an agent's appraisal for a detached dwelling of the same size in your suburb. The rental yield calculator takes any rent you enter.
This week's worked example
Week of 19 October 2026. A new example, rule and owner report every Monday.
A 60 m² two-bedroom flat with a premium finish on a block with some slope, services 8 m from the house, in Greater Hobart: our model puts it at $253,500 turnkey ($223,000–$284,000), or $4,220 per m². At the area's median 2-bedroom bond rent of $520 a week it would return 8.3% net and pay back in 15.5 years after tax.
Rule check: The ACT removed the 500 m² minimum block size for secondary residences on 1 July 2026; the 90 m² limit and the development application requirement stay.
Questions people ask
How much does a granny flat cost in Tasmania?
About $193,000 in Hobart and $164,500 in regional Tasmania for a standard 60 m² two-bedroom flat, turnkey.
How big can a granny flat be in Tasmania?
60 m² of gross floor area for a secondary residence. A draft amendment to the State Planning Provisions proposes 90 m²; it was on exhibition until 22 July 2026 and is with the Tasmanian Planning Commission.
How much does a granny flat cost in Canberra?
About $237,500 for 60 m² and $338,500 for the 90 m² maximum, including the development application.
Do I still need a 500 m² block for a granny flat in the ACT?
No. The missing middle reforms removed the 500 m² minimum from 1 July 2026. A development application is still required, and the flat cannot be unit titled or sold separately.