Yes, it is possible to build a two storey granny flat in NSW, provided the design complies with the relevant planning controls or receives council approval. While many granny flats are single-storey, a two-level design can be an excellent solution for properties where preserving outdoor space is important or where the site’s layout makes building upward more practical.
Whether your project can proceed depends on factors such as your property’s zoning, lot size, planning controls, site conditions and approval pathway. A well-designed two storey granny flat NSW project can provide comfortable, self-contained accommodation for family members, guests or tenants while maximising the use of your land.
What Is a Granny Flat Under NSW Planning Rules?
In NSW, a granny flat is officially known as a secondary dwelling.
It is a fully self-contained residence located on the same lot as the primary home and typically includes:
- Bedroom or bedrooms
- Bathroom
- Kitchen
- Living area
- Laundry facilities (where applicable)
A secondary dwelling may be:
- Detached from the main house
- Attached to the existing home
- Built within the existing dwelling
The principal house remains the main residence on the property, and the granny flat cannot usually be subdivided onto a separate title.
Can You Build a Two Storey Granny Flat in NSW?
Yes, in many situations.
Current NSW planning controls do not require every granny flat to be single-storey.
Under the Housing SEPP and complying development standards, a secondary dwelling may generally be built up to 8.5 metres in height, provided all other planning requirements are satisfied.
However, every property is different.
A two storey granny flat NSW design must also comply with requirements relating to:
- Maximum floor area
- Building height
- Site coverage
- Setbacks
- Private open space
- Landscaping
- Privacy
- Overshadowing
- Building separation
Some sites qualify for complying development, while others require a Development Application (DA) through the local council.
An early site assessment helps determine which approval pathway is suitable.
The 60 Square Metre Rule
One of the most important rules affecting a two storey granny flat NSW project is the maximum floor area.
For most properties, a secondary dwelling is limited to 60 square metres of total internal floor area unless another planning instrument specifically allows a larger dwelling.
Importantly, this is:
60 square metres in total — not 60 square metres on each level.
For example:
Ground Floor
- Kitchen
- Living room
- Bathroom
- Laundry
Upper Floor
- One or two bedrooms
- Storage
A carefully designed floor plan can make the home feel spacious despite the floor area limit.
Complying Development or Council DA?
There are two common approval pathways.
Complying Development Certificate (CDC)
Many granny flats can be approved through a Complying Development Certificate, provided the property satisfies all planning standards.
This pathway is generally quicker than lodging a Development Application.
Properties typically need to meet requirements relating to:
- Eligible residential zoning
- Minimum lot size
- Building setbacks
- Building height
- Site coverage
- Landscaping
- Housing SEPP requirements
Development Application (DA)
If your proposal does not satisfy every complying development standard, it may still be approved through a council Development Application.
Council will assess:
- Site characteristics
- Neighbour impacts
- Privacy
- Overshadowing
- Streetscape
- Local planning controls
A DA does not necessarily mean the proposal is unsuitable—it simply allows a more detailed assessment.
Why Choose a Two-Storey Granny Flat?
Building upward offers several advantages.
A two storey granny flat NSW design can:
- Preserve backyard space
- Create larger outdoor entertaining areas
- Retain gardens
- Improve privacy
- Separate living and sleeping areas
- Maximise smaller blocks
- Reduce the building footprint
For many Sydney properties where land is limited, building upwards creates a more efficient layout.
Privacy and Neighbour Considerations
Second-storey windows require careful planning.
A quality design considers:
- Window placement
- Privacy screens
- Frosted glazing
- Landscaping
- Balcony positioning
- Building orientation
Designers also assess potential overlooking and overshadowing to reduce impacts on neighbouring properties.
These considerations improve both liveability and planning outcomes.
Is Your Property Suitable?
Every site is different.
Important factors include:
- Lot size
- Block width
- Block depth
- Slope
- Easements
- Sewer locations
- Stormwater infrastructure
- Existing buildings
- Significant trees
- Bushfire constraints
- Flood planning
- Heritage controls
Even narrow or battle-axe blocks may support a two storey granny flat NSW design with the right planning and design approach.
A professional site assessment provides clarity before design begins.
Designing the Staircase
Because the allowable floor area is limited, staircase design becomes particularly important.
A well-designed staircase can:
- Save valuable floor space
- Improve furniture layout
- Increase storage
- Create better circulation
- Improve natural light
Planning the staircase early helps maximise every square metre.
Will a Two-Storey Granny Flat Cost More?
In many cases, yes.
Building a second level may involve additional costs for:
- Structural engineering
- Stairs
- Scaffolding
- Framing
- Roofing
- Construction time
However, building upwards can reduce site impacts and preserve valuable outdoor space, making it a worthwhile investment on smaller properties.
A detailed quotation should clearly outline:
- Design
- Approvals
- Site preparation
- Construction
- Services
- Finishes
- Inclusions
A Simple Planning Process
Most projects follow these steps:
- Site assessment
- Planning review
- Concept design
- Budget estimate
- Detailed drawings
- Approval (CDC or DA)
- Construction
- Completion
Working with one experienced team throughout the project often creates a smoother process and helps minimise costly design changes.
Frequently Asked Questions
Can every property have a two-storey granny flat?
No. Every property must satisfy applicable planning controls, site constraints and approval requirements.
Can a two-storey granny flat be approved under complying development?
Yes, if the proposal complies with all relevant Housing SEPP and complying development standards.
Does the 60 square metre limit apply to each floor?
No. The 60 square metre limit generally applies to the total internal floor area across both levels.
Is a two-storey granny flat better for smaller blocks?
Often, yes. Building upward reduces the ground-level footprint and preserves more usable outdoor space.
Will council approval always be required?
Not always. Many compliant projects may qualify for a Complying Development Certificate instead of a Development Application.
Final Thoughts
A two storey granny flat NSW project can be an excellent way to maximise your property’s potential while preserving valuable outdoor space. Although not every site is suitable, many Sydney properties can accommodate a two-level secondary dwelling when the design complies with planning controls or receives council approval.
Early planning, professional site assessment and experienced design advice are the keys to determining whether your property is suitable and selecting the most appropriate approval pathway.
Planning legislation can change, and every property has unique characteristics. This article provides general information only and should not be relied upon as planning or legal advice. Always obtain professional advice specific to your land before proceeding.
About Paramount Planning & Construction
At Paramount Planning & Construction, led by Mark The Builder, we design and build high-quality granny flats, home extensions and renovations across Sydney.
With more than 20 years of industry experience, our Australian-owned team manages every stage of your project—from concept design and planning approvals through to construction and handover.
Whether you’re building a one, two, three or four-bedroom granny flat, designing for a narrow block, creating a pool house or planning a custom two storey granny flat NSW project, we deliver practical solutions, premium finishes and quality workmanship tailored to your lifestyle and budget.
Contact us today to arrange a free consultation, site assessment and detailed quote.