What is a knock down rebuild?
A knock down rebuild involves demolishing one house in order to completely build a new one in its place. Typically, the demolition process will involve levelling a block and getting rid of all structures on it, as well as things that may be underground. The vacant land is then used to build a new house from the ground up.
How much does it cost to demolish a house?
You could pay between $17,000 and $40,000, or around $40 to $65 per square meter, to demolish your home, according to data from hipages. There are various factors that can either add to the cost or help you save money, depending on the block itself, the material that the house is built from, and more.
What can add to the cost of demolishing a house?
While a demolition quote will typically address requirements such as council demolition approvals, capping off utilities like gas and water, and soil testing and surveying, there are additional factors that can drive the price up. These can include access to the block itself, the cost of removing tree roots and pipes, and hidden nasties such as asbestos.
Access to the block
The more challenging it is to access the block with trucks and industrial equipment, the more your demolition costs could rise.
Things lurking below ground
It’s just as important to know what’s underneath a block as it is what’s on top. Old footings, tree roots, and other things underground need to be removed before a rebuild, which can add to the cost.
Asbestos
The presence of asbestos in the house can add a significant amount to demolition costs. Asbestos must be removed by a licensed removalist. It’s against the law to hire someone who isn’t licensed to remove asbestos, as special training and experience are required to handle, remove, and dispose of the material.
Hipages estimates the removal of external cladding with asbestos can cost between $4,000 and $5,000, while the cost of removing internal cladding with asbestos from a single room can be between $1,000 and $1,500, and removing a roof with asbestos can cost between $3,500 and $5,500. Prices will vary depending on how much asbestos is in your house or on your property and where it is situated.
What are some ways you can save money on a demolition?
You might be able to save some money on a demolition by selling the existing structure to a house remover, who may take the house away for no charge. While house removal services commonly deal in old timber dwellings such as Queenslanders, colonial, and post war-style homes, others from more recent periods may also be moved, as long as they are built on platform timber floors. Although it’s possible to move concrete slab homes, it’s more costly. So, if you are curious about this as an option, it would be wise to make enquiries with individual home removers in your area.
What does it cost to build a new home?
According to the Australian Bureau of Statistics (ABS), the average cost to build a house in Australia was $474,939 in 2024-2025. Meanwhile, an average townhouse cost $435,089 to build. It is worth keeping in mind, though that this is an average, and it is difficult to accurately predict the cost of building a new house. The price of a home is dependent on a variety of factors, such as the size, materials, and design itself, as well as the fittings, fixtures, and decor you choose.
Different companies will offer different package deals for houses, and if you are planning a knock down rebuild, you may choose to work with an independent architect to design and build a bespoke home for you.
Ultimately, the cost of building a home is dependent on your needs, tastes and budget.
What are the pros and cons of a knock down rebuild over a renovation?
Rebuilding a home can have a number of advantages over renovating. It can give you a clean slate and the ability to design the new home you want, as well as potentially having a quicker turnaround time than a renovation. You will also be able to build a home with new materials and take advantage of structural warranties.
Of course, there are also some disadvantages. You’ll need somewhere to live while the renovations are being carried out, and you’ll need to be careful you don’t contravene local zoning regulations or heritage listing requirements. Likewise, a new build can be prone to cost blowouts.
What are the pros of choosing a knock down rebuild?
A clean slate
While a renovation can let you retain the character of your home and keep certain key features, a knock down rebuild brings the advantage of starting from a clean slate. This method can give you a say in the design of your home from start to finish, allowing greater control of the layout, style, colour scheme and aesthetic.
A knock down rebuild can mean that you will not need to accommodate or work around any issues with the existing structure, such as an inconveniently placed retaining wall or a lack of floor space. However, you will be limited by the size of your block and zoning regulations.
A quicker turnaround
Renovations can take time, but a knock down rebuild could let you get it over and done with in one go. If you would prefer to budget for one renovation job at a time (and space them out over a number of years), then you may find that renovating is the more suitable option for you. If, on the other hand, you want an all-new house to move into quickly, and are in a position to spend the money for a knock down rebuild, then this could be the preferable option for you.
New materials
A knock down rebuild lets you get all your materials new. Old houses have old house problems, and new materials may not require the same level of maintenance that old ones do. It’s worth keeping in mind, however, that the quality of a new build is also dependent on the quality of the materials. Before signing a contract, it may be advisable to ask your builder where they source their materials and if they comply with Australian standards, as well as any potential delays.
Warranties
Whether you are doing a new build or renovating, there are various statutory warranties that exist to cover you. Builders are generally required to take out insurance for work valued above a certain dollar amount.
These warranties vary across the country, so you may want to check with your state or territory government authority. One advantage of a new build is that, in addition to the statutory warranties, some builders will also offer an additional structural warranty for new homes. Depending on your builder, these warranties can cover you in the event of structural defects in your home for up to five decades.
What are the cons of choosing a knock down rebuild?
You’ll need somewhere to live during the build
Before you knock your house down, you’ll need to organise somewhere to live. This could involve paying rent or a mortgage on a separate house, or even sleeping in a caravan on site as you wait for the work to be finished.
If you’re planning a knock down rebuild, you’ll need to make sure you’ve budgeted for the time you’ll be living away from the house, including possible costs of storing your possessions and furniture, and make sure there are allowances in this budget for the build to run over time. You will also want to consider ensuring your home and contents insurance is up to date, based on where you (and your possessions) are during this time.
Cost
A knock down rebuild lets you get the whole job done at once, rather than in increments like with a renovation. The flipside of this is that you will be required to pay for the whole job within a relatively short period of time. If you choose to renovate one area of your house at a time, your costs may be spread out over a longer period, requiring smaller cash spends or loans progressively, such as construction loans. Depending on your style of budgeting, this may be preferable to a knock down rebuild, which can leave you with a large loan and personal debt to pay off.
Likewise, an unexpected find on the site, or a sudden spike in materials costs can lead to a budget blowout. Say your builder finds asbestos buried underground, or the soil quality turns out to be poor, you could suddenly find yourself paying a lot more than you bargained for.
Local zoning laws
It’s worth being wary of council regulations and zoning laws in a knock down rebuild’s planning stage. If the property you’re looking to demolish is subject to any heritage requirements, then you may not get permission to knock it down. You can face major fines, as well as wider consequences for knocking down heritage-listed properties without permission. Before any kind of knock down rebuild, it is worth checking local zoning laws to make sure you will not run afoul of any restrictions.
