Building a House on a Narrow Lot? Here’s What to Know

April 15, 2025

Residential space is getting tighter and land prices aren’t exactly dropping anytime soon. That’s why more Aussies are considering building a house on a narrow lot and making the most of their property, turning them into stylish, practical homes that don’t sacrifice space or liveability. In busy areas, especially in urban cities, where every square metre counts, it just makes sense.

If you’re wondering how to make a narrow block work, you’re in the right place! We’ll cover the benefits of building on narrow lots, smart design tips and how to make the most of what you’ve got. Whether you’re planning a build or just love smart design, there’s plenty here to check out!

Building on Narrow Lots

A narrow lot is exactly what it sounds like, a block with less width to work with than the average home site. With land getting harder to come by, building a house on a narrow lot is becoming a popular option, especially in urban areas where space is limited but the demand for housing keeps growing. Rather than missing out on homeownership or spending a fortune on a bigger block, many are choosing to build smarter and make the most of every bit of their space.

Of course, a smaller block comes with a few challenges. Fitting everything in without feeling cramped takes clever planning, but there are plenty of ways to get it right. If there’s not much room to spread out, going up with a second storey is always an option. With the right design, building on narrow lots doesn’t have to feel small. It just means making smart choices to create a home that works well for the people living in it.

Benefits of Building a House on a Narrow Lot

Building a custom home on a narrow lot comes with several advantages that make it an appealing option for homeowners. Some of its key benefits are:

Maximises Land Use Efficiency

Land is one of the biggest costs in home ownership. A narrow lot makes it possible to live in sought-after locations without needing a large block. It’s also a great way to secure a home in established suburbs.

Lower Land Costs

Smaller lots often come with a more affordable price tag compared to traditional blocks. This makes homeownership more accessible, especially for first-time buyers looking to build in desirable areas.

Lower Build Costs

A compact design generally requires fewer materials and less labour, meaning the overall construction cost can be lower.

More Affordable to Maintain

Building a house on a narrow lot means lower energy costs, less cleaning and minimal upkeep. With fewer rooms and surfaces to manage, it’s easier to maintain a tidy and efficient home.

Encourages Vertical Design

Instead of spreading out, narrow homes encourage them to build upwards. Multi-level designs allow for more living space without taking up extra land.

Innovative Home Designs

Narrow lot homes push architects and designers to get creative. From open-plan layouts to innovative storage solutions, these homes are often more stylish and functional than traditional designs.

Ideal for Urban Living

If you want to live closer to the city without breaking the bank, building on narrow lots for your dream home can be the perfect solution. With limited space available in urban areas and less construction cost, these homes provide an opportunity to stay near amenities, work and public transport without sacrificing comfort.

Minimalist Lifestyle

With limited space, homeowners naturally focus on the necessities. This encourages clutter-free, efficient living where every room serves a purpose. It’s a great way to create a modern, low-maintenance lifestyle.

Factors to Consider for a New Build on Narrow Lots

While narrow homes come with plenty of advantages, thoughtful planning is important to make them as functional and comfortable as possible. Here are key factors to keep in mind when designing your dream new build on narrow lots.

Well-Thought Interior and Layout

A smart floor plan is the secret to making a narrow home feel open and spacious. Open-plan designs, high ceilings and clever zoning help create a practical and inviting space.

Lots of Natural Light and Ventilation

Strategic window placement, skylights and glass doors can brighten up a home and make it feel larger. Good airflow is also important for keeping the space fresh and comfortable.

Multi-Level Living

Adding extra levels is a smart way to gain more living space. Whether it's a two-storey house or a split-level design, going vertical allows for separate zones while maintaining an open feel.

Smart Storage Solutions

Built-in wardrobes, under-stair storage and multi-purpose furniture can maximise every inch of space. Custom joinery and smart shelving solutions also help keep things organised without cluttering the home.

Light Colour Palette

Using neutral and light colours can make a home feel more open and airy. White walls, soft greys and light wood finishes create an illusion of space, making rooms feel larger than they are.

Compliance with Local Council Regulations & Building Codes

Each area has zoning and building regulations that must be followed. Working with professionals makes sure that your design meets all council requirements while still achieving the best possible layout.

Parking & Access

A narrow lot often comes with limited parking options. Consider a compact garage, carport or easy road access for your car to make sure you have practical and secure parking.

Outdoor Space & Landscaping

Even with limited land, you can build on narrow lots and still have beautiful outdoor areas. Courtyards, vertical gardens and rooftop terraces provide greenery and relaxation without taking up too much space.

Privacy

With homes built close together, privacy is an important factor. Thoughtful window placement, frosted glass, screening and well-positioned fencing can help maintain a sense of seclusion.

Energy Efficiency & Sustainability

Passive design principles, solar panels and energy-efficient appliances can help reduce running costs while making the home more eco-friendly. Good insulation and cross-ventilation are also important for comfort.

Future Resale Value

A well-designed narrow lot home can be a great investment. Even if you’re building for yourself, it’s worth considering features that will appeal to future buyers, such as flexible living spaces and high-quality finishes.

Consider a Custom Home Design to Maximise Every Square Metre

Every narrow lot is unique and a custom home design makes sure that no space is wasted. Working with experienced builders and designers can help create a home that suits your needs and makes the best use of your land.

Building a House on a Narrow Lot Should Be Hassle-Free! Contact Prestige Homes & Granny Flats!

Planning to build on narrow lots doesn’t mean you have to compromise on style, comfort or functionality. With smart design, innovative solutions and the right professionals by your side, you can create a home that feels spacious, modern and practical.

Partner with Prestige Homes and Granny Flats to create custom homes and granny flats that will surely fit your lifestyle, lot size and budget. Get in touch today for expert advice and a hassle-free building experience!

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What Is a Granny Flat? Full Guide for Australian Homeowners

October 27, 2025

Granny flats are no longer just for grandparents. Across Australia, they’re being built as rental units, guest accommodation, or smart add-ons for multigenerational families. Climbing property prices and limited housing supply have made granny flats an attractive option for homeowners seeking flexibility and extra income. Before you build, there are legal and planning steps to navigate. Each state has its own council rules, and the approval process can feel overwhelming. Prestige Homes & Granny Flats provides practical guidance on paperwork, design, and construction, keeping your project organised and on track from the start. Before you start asking what granny flats are and how to build one, remember there are legal and planning steps to navigate. Each state has its own council rules, and the approval process can feel overwhelming. Prestige Homes & Granny Flats provides practical guidance on paperwork, design, and construction, keeping your project organised and on track from the start. What are Granny Flats? So what is a granny flat? The answer is simple. It’s a small, self-contained home built on the same block as a main residence. Think of it as a compact version of a regular house, usually including a kitchen, bathroom, living area, and one or two bedrooms. Most states cap their size at around 60 m², though exact limits vary. In Queensland, they’re often called “secondary dwellings,” while in Victoria, you’ll hear “dependent person’s unit.” No matter the name, the idea is the same: extra living space with independence built in. What Are Granny Flats Called in Perth? Across Perth and the wider WA region, granny flats are formally classified as “ancillary dwellings” under local council planning regulations. They’re permitted on most residential-zoned blocks that meet the minimum land size, with a maximum floor area of up to 70 m². A major difference in WA is who can occupy them. Since 2015, Perth’s rules have allowed ancillary dwellings to be rented to non-family members, giving homeowners more flexibility for rental income or family use. Councils such as the City of Perth, City of Stirling, and City of Joondalup apply these state planning guidelines, though it’s always worth checking your local council’s requirements before starting. In Perth, granny flats can take several forms. They may be built as a detached unit, joined to the main house, or created by converting existing structures like garages. This flexibility makes them an appealing way to add space, boost property value, or create rental income without leaving your current suburb. What Is Granny Flat: Legal and Planning Rules You Need to Know To fully understand what granny flats are, you also need to follow council regulations that vary from state to state. Zoning and Land Use Your block must be in the correct residential zone to allow an ancillary dwelling. Perth councils set these rules, so it’s important to confirm land use requirements before drawing up plans. Size Limits & Design In most parts of Australia, granny flats are limited to 60 m². In Perth and wider WA, ancillary dwellings can be up to 70 m², provided they meet council design codes for height, setbacks, and appearance. Approval Processes Some states require both planning and building permits, while others fast-track approval if certain criteria are met. In WA, approvals generally move faster when plans follow the Residential Design Codes (R-Codes) . Rental & Occupancy Rules Unlike some states, Perth homeowners can lease ancillary dwellings to non-family members. Since the 2015 policy change, this flexibility has allowed granny flats to serve as either rental income properties or extra family space.

Step-by-Step Custom Home Build Checklist

October 24, 2025

Building your own custom home in Australia is exciting, but it can sometimes feel like you’ve got a lot on your plate. From design choices and council approvals to budgets and timelines, there are plenty of moving parts that can quickly become overwhelming. That’s why having a clear checklist is important. We’ll guide you through the key steps in building a custom home checklist. Whether it is your first build or an upgrade to suit your lifestyle, our team helps you stay organised and confident right through to the final handover. Building a Custom Home Checklist Think of a custom home checklist as your blueprint for staying organised. It turns the chaos of construction into a sequence of manageable steps. Without a checklist, you could face delays, unexpected costs and unnecessary stress. A detailed custom home build checklist ensures a smooth, cost-effective and worry-free build. It’s not just for first-time owners either. Even seasoned homeowners upgrading to a custom space benefit from a structured approach that keeps the build on track and aligned with their vision.