New 85m² Granny Flat Rules in Western Sydney (2026)

May 26, 2026
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New 85m² Granny Flat Rules in Western Sydney (2026)

Homeowners across Western Sydney are now asking the same question:

“Can I now build an 85m² granny flat instead of the old 60m² limit?”

The answer is:

In certain Western Sydney airport precinct areas — yes.

The NSW Government has recently amended planning rules affecting land around the new Western Sydney International Airport, allowing larger secondary dwellings of up to 85m² in selected lower-noise impact areas.

This change affects parts of:

  • Fairfield
  • Liverpool
  • Camden
  • Penrith
  • Wollondilly

and creates major opportunities for homeowners wanting larger granny flats, better rental returns, and more functional family living spaces.

What Has Changed?

Traditionally, detached granny flats in NSW were generally limited to:

  • 60m² internal floor area
    under the Housing SEPP rules.

However, the new Western Parkland City planning amendment now permits:

  • secondary dwellings up to 85m²
    within approved lower aircraft noise zones surrounding the new airport.

This is one of the biggest granny flat planning changes Western Sydney has seen in years.

Why the New Rules Matter

An 85m² granny flat changes everything.

Instead of squeezing into a compact 2-bedroom layout, homeowners may now have room for:

  • larger open-plan living,
  • bigger kitchens,
  • additional storage,
  • larger bedrooms,
  • study areas,
  • better outdoor integration,
  • and more premium layouts.

For investors, this could also mean:

  • stronger rental returns,
  • wider tenant appeal,
  • and increased property value.

Which Areas Are Affected?

The new rules apply only to selected areas within the Western Sydney Airport precinct planning zones.

This includes parts of:

  • Fairfield
  • Liverpool
  • Camden
  • Penrith
  • Wollondilly

but does NOT apply to every suburb automatically.

Some higher-noise areas closer to the airport may still have restrictions or exclusions.

Will Acoustic Requirements Apply?

Yes.

Because these changes relate to airport planning controls, many granny flats may require:

  • upgraded glazing,
  • acoustic insulation,
  • sealed building envelopes,
  • and other soundproofing measures.

This will likely become an important part of the approval and construction process moving forward.

What This Means for Western Sydney Homeowners

The new legislation creates major opportunities for:

  • dual-income properties,
  • multi-generational living,
  • larger rental accommodation,
  • and higher-quality granny flat designs.

As Sydney housing affordability continues to tighten, larger granny flats are becoming increasingly attractive across Western Sydney.

Final Thoughts

The introduction of the new 85m² granny flat legislation is a major shift for parts of Western Sydney.

While standard NSW granny flat rules still generally remain at 60m², selected airport precinct areas may now qualify for significantly larger secondary dwellings under the updated planning controls.

At Kobo Projects, we help homeowners across Western Sydney understand the latest granny flat regulations, approval pathways, and construction requirements to maximise their property potential.

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New 85m² Granny Flat Rules in Western Sydney (2026) | What Homeowners Need to Know

The NSW Government has introduced major granny flat planning changes across parts of Western Sydney in 2026, with some homeowners now potentially able to build larger 85m² granny flats under the updated legislation.

This is one of the biggest changes to secondary dwelling rules in years and could significantly impact:

  • rental returns,
  • property value,
  • design flexibility,
  • and future development opportunities.

At Kobo Projects, we’re already seeing increased enquiries from homeowners across Fairfield, Liverpool, Blacktown, Camden, and surrounding Western Sydney suburbs wanting to understand how the new granny flat rules apply to their property.

What Are the New Granny Flat Rules in Western Sydney?

Traditionally, detached granny flats in NSW have generally been limited to:

  • 60m² internal floor area
    under the NSW Housing SEPP rules.

However, under the new 2026 Western Sydney airport precinct planning amendments, certain eligible properties may now be permitted to construct:

  • secondary dwellings up to 85m²

within selected lower aircraft noise impact areas surrounding the new Western Sydney International Airport.

This creates new opportunities for larger granny flat layouts and more functional designs throughout parts of Western Sydney.

Which Western Sydney Areas Are Affected?

The new 85m² granny flat legislation may apply to selected properties within parts of:

  • Fairfield
  • Liverpool
  • Camden
  • Penrith
  • Wollondilly

However, not every property automatically qualifies.

Eligibility will depend on:

  • zoning,
  • aircraft noise mapping,
  • lot characteristics,
  • and local planning controls.

Some properties located closer to higher aircraft noise corridors may still face additional restrictions or acoustic requirements.

Why the 85m² Granny Flat Rule Is Important

The previous 60m² limitation often forced homeowners into compact layouts with limited storage and smaller living areas.

An 85m² granny flat creates significantly more flexibility, allowing for:

  • larger open-plan living,
  • bigger kitchens,
  • additional bedrooms or study areas,
  • improved storage,
  • larger bathrooms,
  • better indoor-outdoor flow,
  • and more premium layouts.

For investors and homeowners, this can improve:

  • rental appeal,
  • long-term functionality,
  • and resale value.

Will 85m² Granny Flats Increase Property Value?

In many Western Sydney suburbs, larger granny flats are becoming increasingly attractive due to:

  • rising rental demand,
  • multi-generational living,
  • and Sydney’s housing affordability pressures.

A larger granny flat may provide:

  • higher weekly rental income,
  • stronger tenant appeal,
  • and increased overall property utility.

Well-designed secondary dwellings are now being viewed as long-term investment assets rather than basic backyard accommodation.

Are There Additional Building Requirements?

Yes.

Because the legislation relates to land surrounding the new Western Sydney Airport precinct, some developments may require:

  • upgraded acoustic insulation,
  • double glazing,
  • acoustic-rated windows and doors,
  • enhanced wall and ceiling insulation,
  • and specialised building materials.

These requirements are intended to reduce aircraft noise impacts and maintain internal living comfort.

This makes builder experience and proper planning advice increasingly important.

Can You Still Build Under CDC?

In many situations, complying development (CDC) approval pathways may still apply, however:

  • site-specific controls,
  • acoustic requirements,
  • and eligibility criteria

will need to be carefully assessed before proceeding.

Some properties may instead require a Development Application (DA) depending on the design and planning constraints.

Granny Flats Continue to Grow Across Western Sydney

Demand for granny flats across Western Sydney remains extremely strong throughout 2026, particularly in suburbs such as:

  • Fairfield,
  • Bossley Park,
  • Smithfield,
  • Liverpool,
  • Guildford,
  • Merrylands,
  • and Blacktown.

Homeowners are increasingly building granny flats for:

  • rental income,
  • family accommodation,
  • investment growth,
  • and future flexibility.

The introduction of larger 85m² granny flats may further accelerate this trend.

Choosing the Right Granny Flat Builder in Western Sydney

With changing legislation and increasing construction requirements, choosing an experienced builder is critical.

At Kobo Projects, we specialise in custom granny flats across Sydney and Western Sydney, delivering:

  • high-quality finishes,
  • practical layouts,
  • compliant construction,
  • and tailored solutions for difficult sites and evolving planning rules.

We work closely with homeowners, designers, certifiers, and consultants to help navigate approvals and maximise property potential.

Final Thoughts

The introduction of the new 85m² granny flat legislation marks a major shift for selected areas across Western Sydney.

While standard NSW granny flat rules have traditionally remained capped at 60m² internal area, the new planning amendments may now allow larger and more functional secondary dwellings within eligible airport precinct zones.

For homeowners, investors, and families, this creates exciting new opportunities for:

  • larger layouts,
  • stronger rental returns,
  • and improved long-term property value.

If you’re considering building a granny flat in Western Sydney and want to understand whether your property may qualify under the new 85m² rules, contact Kobo Projects today.

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Come visit us for a free consultation and see how we can bring your residential or commercial space to life!
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