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What You Need to Know About Building a Modular Home in Melbourne

by PEACH A on Sep 25, 2025
What You Need to Know About Building a Modular Home in Melbourne

What Exactly Are Modular Homes?

A modular home is a prefabricated structure built in sections or modules in a factory, then transported and assembled on-site. Unlike traditional homes, which are built entirely at the construction site, modular homes are constructed in controlled environments, ensuring faster build times, reduced waste, and consistent quality.

Is a Building Permit Required for a Modular Home?

When building a modular home in Melbourne, obtaining the proper permits is a crucial step to ensure the construction complies with local regulations and standards. For homes smaller than 60sqm, a Development Application (DA) is typically not required, provided all state regulations are met. For example, in Victoria, homes located in the GRZ zone with a minimum backyard size of 300sqm can bypass the DA process. This simplifies the approval process, making it quicker and more affordable, with the added benefit of a council-exempt or fast-track pathway for faster installation.For homes larger than 60sqm, planning approval is required and the timeline for approval can range from 3 to 12+ months, making it a longer process compared to smaller homes. However, they are still faster to build than traditional homes which can take years to complete.

The Cost Options of Modular Homes in Melbourne

The cost of a modular home in Melbourne can vary significantly based on several factors, including the size of the home, its location, and the specific design or features you choose.
At Bonsai, we offer a variety of affordable options like the Studio, 1 Bedroom, and 2 Bedroom homes, designed to fit your lifestyle without breaking the bank. Here’s a quick breakdown of the costs:
  • Bonsai Studio: with a size of 26SQM and a starting price of $149,000 + install, is perfect for backyard rental or Airbnb, solo living with modern comforts, or a guest house/WFH office with ensuite.
  • Bonsai 1-Bedroom: offering 59SQM of space and a starting price of $ + install, is ideal for singles or couples wanting extra space, downsizers needing storage and comfort, or a premium granny flat with a full kitchen and living area.
  • Bonsai 2-Bedroom: with 59SQM of space and a starting price of $ + install, is perfect for siblings, flatmates, or young families, dual-income rental setups, or flexible use as a second room for an office, guest room, or nursery

How long does it take to move into a modular home?

When we first started thinking about building a home, we braced ourselves for the usual story — long timelines, unpredictable delays, and maybe a year (or two) before we’d even get the keys. But with Bonsai, everything could be different. The whole process was faster, smoother, and honestly, a lot less stressful. From the day you signed off on the design to the moment the keys were in your hands, it took just 3–4 months. No drawn-out construction. No months of living in limbo. Just a home, built off-site with precision, then delivered and assembled in a matter of days. With Bonsai, we didn’t just save time — we got to start living sooner. And that made all the difference.

Ready to move into your dream home sooner? Explore our range of Bonsai modular homes and discover the most affordable prefab homes today!
At Bonsai, we’re not just building homes—we’re creating freedom, possibility, and a new way to live.

 

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