If you have decided a granny flat is right for your NSW property but you are not sure whether to go studio or one-bedroom, this is the comparison that matters. The cost difference is modest. The use-case fit is significant. Picking the wrong size for your end use can mean lower rent, harder resale, or a layout that does not work for the occupant.
| Factor | Studio | 1-Bedroom |
|---|---|---|
| Typical floor area | 19 to 35m² | 35 to 50m² |
| Bedroom configuration | Open (bed in living area) | Separate bedroom |
| Build cost | Lower | Moderate |
| Weekly rent (Sydney) | $400 to $550 | $500 to $750 |
| Approval pathway | SEPP CDC | SEPP CDC |
| Best for | Single occupant, home office, Airbnb micro-stay | Couple, single professional, long-term tenant |
A studio is a single combined room (bed, living, kitchen all in one open space) with a separate bathroom. No internal wall between sleeping and living areas, just clever furniture placement and lighting to delineate the zones.
The Hi-Tech studio range in our granny flat collection starts at 19m² (sleeping nook with kitchenette) and goes up to 35m² (full studio apartment with proper kitchen and living area).
A separate bedroom with door, plus a living/kitchen area, plus a bathroom. This is the most popular granny flat configuration in NSW because it suits the broadest range of occupants. Couples can use it. Single professionals can use it. Older parents like the separation between sleeping and entertaining.
Floor area typically 35 to 50m².
A 1-bedroom granny flat typically costs 15 to 25 percent more than a comparably finished studio. The extra cost goes to:
The kitchen and bathroom cost roughly the same in both, since they are the most expensive square metres in any dwelling.
A 1-bedroom granny flat usually rents for $80 to $150 more per week than the equivalent studio in the same suburb. Over 12 months that is around $5,000 to $8,000 of extra income for a 15 to 25 percent higher build cost.
For most rental investors, the 1-bedroom yields better. It also has a broader tenant pool (couples in addition to singles) which lowers vacancy.
A hybrid we design occasionally: a studio with a loft sleeping nook above the bathroom or kitchen. Gives you separated sleeping space without the cost of a full 1-bedroom. Works well for younger occupants but not for older parents (the ladder is a fall risk).
Both studio and 1-bedroom configurations appear in our pre-loved range from time to time, at meaningful savings vs new builds.
If you are not sure, build the 1-bedroom. The extra cost is modest, the use-case flexibility is much greater, the rental yield is better, and you future-proof your options. Build the studio only if you have a specific single-purpose use case (Airbnb micro-stay in a tourist zone, single-occupant home office, tight block) where the smaller footprint is genuinely better.
Talk to us about your specific situation and we will recommend the size that fits.
Accredited & Certified
NSW Builder LicenceNo. 282297C
HIA Member591826
