burger-menu icon close-icon

How much does a knockdown rebuild cost?

image for How much does a knockdown rebuild cost?

Knocking down your house and rebuilding is a big decision but one that also comes with the exciting possibility to build your dream home.

With a competitive housing market, buying a block of land with a fixer-upper can be a great way to break into the market.

Here’s what you need to consider when calculating how much it might cost to knock down an existing house and rebuild.

Getting the lay of the land

Before you knockdown an existing house, you need to gain approval from your local council.

You also need to make sure you disconnect utilities on the property like power, gas and water as well as finding out from the council whether sewer drainage needs to be shut off.

You may need to pay for surveying of the land to determine obstructions like trees, and roots, as often you need to consider whether removing them will also impact neighbouring land.

While demolition quotes will usually address these requirements, some will not include costly expenses like removing asbestos, pipes or roots, meaning the more you know about the land the better.

It’s also important to note that if you have a current mortgage over the property, demolishing the house will need your lender’s consent.

The Knockdown

LMI Group released a helpful guide to estimate a knockdown rebuild in Australia’s capital cities.

See the table below for Estimated Demolition Costs per metre squared.

  Adelaide $ per m² Brisbane $ per m² Melbourne & Hobart $ per m² Perth $ per m² Sydney $ per m²
Framed 43 44 44 39 58
Brick 52 51 59 44 70

Budgeting for this will be influenced by factors such as what the house is made from, as well as how accessible it is for the machinery.

Large houses on relatively small land can mean tricky access for the knockdown, so ideally a larger block with a smaller home on it would make the process a little easier.

The size of the existing house will also influence the price; the bigger the house the bigger the cost.

Estimates for knockdown costs will factor in how heavy the materials are that are transported away after the knockdown.
For this reason, a brick house would be more expensive than a house made of timber.

The more information you have, the more you can shop around and get competitive quotes from various companies.

What to consider?

Your financing options

Any type of home renovation costs money. Have you thought of how you’re going to finance the rebuilding of your house? A construction loan may be a suitable financing option for you because this type of loan is specifically designed for people wanting to build a new home.

Construction loans work differently than standard home loans. Instead of drawing down the whole loan amount at the start like a regular home loan, you will be drawing down your loan in separate, progressive payments called “drawn downs” at each stage of construction. 

The cost of a new build

The cost of building is hard to estimate, and price will vary based on a number of factors such as architectural costs, project management costs, labour, and materials.

The most recent data from the Australian Bureau of Statistics (ABS) reported the average cost is $1393.55 per sqm.

According to ABS Buildings Approvals data, the average dwelling in Australia spans 229.8sqm

Based on ABS estimates, this would cost a total of $320,238.

Salvage valuable materials

One way to save money on a rebuild is by repurposing or reselling materials from the old dwelling. Tiles, roofing, and timber can be valuable and either sold for cash or reused in the rebuild.

Place you’re staying during construction

If you’re planning on completely knocking down and rebuilding your house, you will need a place to stay during construction. Are you going to stay with a friend or a relative, are you going to rent an apartment, or stay in a hotel? Know your options on where you can temporarily live that’s within your budget.  


There are various warranties that exist to cover you during your construction period. In every state (except Tasmania) construction companies and builders need to have insurance for work on a new build.

In addition to the statutory warranties, some builders will also provide structural warranty for new homes.

These vary from state to state so be sure to research the regulations and requirements in your area.

Structural security

As well as guarantees from your builder, a new home means new materials and structural peace of mind.

You also won’t have to spend money in the long run on renovations and maintenance, and of course, you get to build your dream home.

Old homes can have long term, ongoing maintenance requirements that can result in costly issues if not properly taken care of, such as floorboards, old electrical cabling or plumbing, as well as outdated appliances. Old houses have old house problems, and new materials won’t require the same level of maintenance and upkeep that old ones do.

If you are ready to start your knockdown rebuild, or want to find out more about great rates on home loans, contact one of our lending specialists today.

About the article

As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.

Welcome to loans.com.au _

Just in case we lose you, may I ask for your contact details....

Loading Form