For many Victorian families, a small modular home feels like the smart, flexible solution; whether it’s to bring parents closer, give adult kids some independence, or simply make better use of your land. With recent changes to Victorian planning laws, it’s easier than ever to build a second dwelling up to 60 m² without a planning permit.
But there’s a catch.
“No permit under 60 m²” doesn’t mean “no approvals at all.” The reality is that while some red tape has been reduced, the process still involves detailed compliance and several technical steps before you can move anyone in.
At Space Property Homes, we’ve seen too many families caught off guard by misinformation. So let’s break down what’s actually involved. We prefer to speak clearly, transparently and in plain English.
The 60 m² Rule — What It Really Means
Victoria’s new planning reforms allow small, self-contained dwellings up to 60 m² to be built on eligible properties without needing a planning permit. This applies to most standard residential and rural lots over 300 m², as long as the land isn’t affected by flood, bushfire or environmental overlays.
However, this doesn’t mean the council won’t care what you build. The second the structure becomes habitable (with a kitchen, bathroom, or laundry), it must still comply with the Victorian Building Regulations and the National Construction Code.
That means:
- You must still obtain a building permit from a licensed builder and registered building surveyor.
- The design must meet requirements for setbacks, site coverage and building height.
- Construction must be approved and inspected before anyone moves in.
In short: the planning approval may be gone, but the building approval still stands.
What You’ll Still Need to Do
Even when your modular home falls under the “permit-free” planning category, several technical and compliance steps still apply. These can vary slightly depending on your council and property location, but most homeowners will need to consider the following:
1. Building Permit
Every habitable modular home requires a building permit - full stop. Your builder or surveyor will submit plans to ensure the structure complies with fire safety, energy efficiency and structural standards. The building permit is what legally allows construction to begin.
2. Service Connections
Power, water, stormwater and sewerage connections are not automatic. Each must be approved and signed off by the relevant authority. In some municipalities , even minor works like connecting to existing drains or adding a new crossover require separate applications and engineered plans.
3. Overlays and Site Conditions
If your property is located in a bushfire-prone, flood, or heritage zone, the planning permit exemption might not apply. A BAL (Bushfire Attack Level) assessment may be mandatory and additional construction standards could be enforced to protect your home.
4. Title and Zoning Checks
Before you order a modular home, check your property title and zoning details. Some older blocks still contain “dependent person’s unit” covenants, heritage, easements, or minimum lot size restrictions that affect development. These can often be resolved but only if identified early.
5. Occupancy Certificate
Once construction is complete, a building surveyor must issue an Occupancy Permit confirming the home meets all requirements. Without it, you legally can’t use the structure as a dwelling, which explains why you’re seeing so many cheap homes for sale on Facebook Marketplace!
Common Misunderstandings
We often hear:
- “It’s under 60 m², so I don’t need any approvals.”
False. You’ll still need a building permit and utility approvals. - “I can use it for Airbnb or a tenant straight away.”
Only once the dwelling has an Occupancy Certificate and complies with local laws. - “My builder handles everything.”
Some do, some don’t. Always confirm who is managing permits, applications and connections.
This confusion often arises because many modular home sellers only supply the structure, not the process. At Space Property Homes, we handle the end-to-end delivery, from council checks to final occupancy, so families don’t get lost in the paperwork. We’re here to ensure our quality homes are delivered, installed and tenanted for you upon handover.
The difference between a smooth project and a stressful one often comes down to preparation, knowing which council triggers apply and having professionals manage the process.
Why Space Property Homes Takes a Different Approach
The modular home industry is crowded with companies selling boxes, not solutions. They’ll ship you the product but leave you to navigate the compliance maze alone.
Space Property Homes was built to be different. We don’t just sell modular homes; we deliver liveable, approved, ready-to-use dwellings. Our team can manage every stage, from planning, building, utilities and compliance, we’ll even handle the landscaping if you choose, so that you never have to interpret vague council language or chase approvals yourself.
Key Takeaways
- Under 60 m² doesn’t mean approval-free. You still need a building permit and must meet construction and service standards.
- Overlays can override exemptions. Check for bushfire, flood, or heritage zones early.
- The process varies by council. Always confirm local triggers before ordering a modular unit.
- Professional management matters. A builder who handles compliance and connections can save you months of delays and thousands in rework.
Thinking of adding a modular home to your property?
Space Property Homes offers a fully managed, start-to-finish service, from assessing your site to securing every approval and handover. We simplify the complex so you can focus on what matters most: creating extra space that feels like home.
