How Much Does a Knockdown Rebuild Cost?

There’s a growing trend in the Australian housing market: the knockdown rebuild. Whether it’s due to structural issues or a new owner wanting to start fresh, knocking down an existing home to rebuild on the same lot is becoming increasingly common.

Costs vary widely depending on the size and complexity of the project, but most knockdown rebuilds in Australia fall between $350,000 and $750,000.

In this guide, we’ll share what a knockdown rebuild involves, what factors influence the price, and how to budget for one.

What is a Knockdown Rebuild?

Knockdown rebuilds are a popular choice among new property owners who want a fresh start on their property. Sometimes, they bought a property because of the land it sat on, rather than the worn-down old dwelling that occupied it. In these cases, owners opt for a knockdown and rebuild option, rather than fixing up a ramshackle home.

In other cases, a disastrous fire has meant that a home is unsalvageable, and the cost of a knockdown and rebuild is cheaper than attempting to restore or sell the land and buying a new property elsewhere.

Landowners choose knockdown rebuilds for all kinds of reasons. In older cities, knockdown rebuild prices in Sydney are often cheaper than buying a new home. Similarly, the knockdown rebuild cost in Melbourne (where a larger portion of older homes sit on valuable pieces of land) is often less than buying a more modern home through a mortgage.

Read on to learn how much it costs to knock down and rebuild a house and whether it’s the right option for your parcel of land.

Knockdown rebuild estimated costs

If you’re thinking of knocking down an old home to build something new, the total cost can vary widely depending on where you live, what you’re building, and how custom or luxurious you want the final design to be. Realistically, most people end up paying somewhere in the middle.

Here are some cost estimates to help you budget, based on figures from HomeShelf:

• Basic project: $300,000 to $500,000
  A smaller, single-storey three-bedroom home with standard inclusions and little to no structural changes.
• Mid-range project: $500,000 to $700,000
  A comfortable four-bedroom family home with some upgrades, like stone benchtops or an alfresco area.
• High-end project: $700,000 to $1 million+
  A large two-storey home with premium finishes, custom floorplans, and features like a butler’s pantry, conservatory or home office.

Key factors influencing the cost

It’s not just the size of your home that affects the price. Where you’re building, what you’re building with, and how you design it will all impact the final cost. Here are some key additional costs to keep in mind.

• Your house design: Custom layouts, tricky floorplans, and unique features all take more time and effort to build. If you’re after a simple design, buying off the plan will usually be cheaper and faster.
• Materials and finishes: As you’d expect, premium materials make for a more expensive build. If you want timber floors, marble benchtops, or custom cabinetry, it can all add up fast.
• Site conditions: If your land is on a slope, has tricky access or poor soil, it will cost more to prepare and build on.
• Location: Building in Sydney or other high-demand areas usually comes with higher trade and material costs compared to regional towns.
• Regulations: If your property is in a bushfire or flood zone, you might need extra reports or approvals that will add to your overall budget.

5 additional expenses to keep in mind

Unfortunately, the cost of a knockdown and rebuild isn’t always obvious. Sure, the demolition and construction of the new dwelling are certainly apparent, but there are all sorts of hidden costs that you may not have calculated. Here are five of them.

Detaching services

During your knockdown rebuild, you may encounter an issue where certain services need to be disconnected before demolition can continue or begin at all. This includes things like electricity, plumbing, and gas lines, all of which must be professionally disconnected before demolition begins.

Council fees for property changes

You may incur additional charges from your local council for the specific changes you want to make to your property. For example, if you want to knock down an older, falling-down second dwelling on your property and install a granny flat or second car garage, or even build a two-storey duplex where a single-storey building once stood, you are likely to incur significant council fees for zoning changes.

Foundational changes and footings

Footings are long, wide strips of concrete or rebar placed on the soil before any foundation is added to a new structure to prevent the structure from settling into the ground. If you notice that your existing structure is sinking into the earth a little, chances are these footings will need to be replaced. This is not an uncommon occurrence during knockdown rebuilds, but it can add to the knockdown and rebuild cost.

Alternative accommodation

If you are knocking down and rebuilding your existing home, you will need somewhere else to stay during the process. Bear in mind that the average knockdown and rebuild time-frame is between 12 and 18 months, but can be longer due to delays. Ensure you have appropriate funds and/or someone you can stay with for the knockdown rebuild project.

Design and architectural planning

If you’re building a custom home, you’ll need to budget for design fees upfront. This includes architectural drawings, revisions, and time with the design team. The more tailored your layout, the more you’ll pay, and these costs can add up fast if you make changes along the way.

What are the advantages of a knockdown rebuild?

A knockdown rebuild is a great option if you love your location but your current home no longer works for you. Rather than spending money trying to fix an old layout, it gives you the chance to start fresh and build something that suits your lifestyle.

Total design freedom

You’re not working around old walls or a layout that doesn’t work for your family. You get to choose the floor plan, room sizes, and features from scratch. That could mean you can expand your home to match your current life by including an additional child’s room, hobby room, home office or extra storage.

Better long-term value

Renovations can get expensive fast, especially if unexpected issues come up midway. With a rebuild, you’re working with a clean slate, which makes it easier to budget and plan.

Energy efficiency

New homes are built to current standards, so you’ll get better insulation and smarter heating and cooling, all of which can lower your bills.

Higher resale value

A new home in an established suburb is appealing to buyers. You get the modern layout and finish without having to move to a new development or estate.

You don’t have to move

You can keep your local café, schools, and commute, now in a home that fits your lifestyle.

Lower maintenance

Everything is brand new, so you won’t need to worry about constant repairs or patch jobs for at least a few years.

Tips for budgeting your knockdown rebuild

Planning your budget properly can save you a lot of stress from unexpected costs down the line. Here are a few ways to keep your spending in check during your project:

• Start with your current budget: Work backwards from your total budget so you’re not designing a house you can’t build.
• Get everything in writing: Ask your builder for a breakdown of what’s included and what’s going to cost extra.
• Expect the unexpected: Things almost never go exactly to plan, so always factor in contingency money in case something unexpected comes up.
• Pick your priorities: Decide early what matters most (like the amount of rooms or kitchen/bathroom finishes) and where you’re happy to save.
• Don’t forget extra costs: Make sure you’ve factored in things like permits, rent while you build, and landscaping, as they can add up fast.

With some careful planning, you’ll understand what you can afford and set a plan in motion that matches your budget.

In summary

A knockdown rebuild is a great way to stay in the location you love while upgrading to a modern, custom-designed home. Costs vary, but by understanding the key expenses involved, you can plan effectively and reach out for accurate quotes.

Provincial Homes specialises in knockdown rebuilds across Sydney and beyond. Contact our team to learn more about knockdown rebuild costs and how the process works.

FAQs

How long does a knockdown rebuild take?

The average timespan of a knockdown rebuild is between 12 and 18 months.

Is a knockdown rebuild worth it?

A knockdown rebuild might well be worth your effort, time and money if the dwelling on your property is in dire disrepair to the point of being unsalvageable. Or, if your insurance company has offered you a sum following a catastrophic fire or flood, that would make a knockdown rebuild on your existing lot more cost-effective than buying an existing home elsewhere.

Knockdown rebuilds can be more expensive than buying a new lot and building a new home, due to the demolition costs. Still, if you can’t bring yourself to part with a historical or emotionally significant plot of land, then a knockdown rebuild might be worth the cost.

How much can I borrow for a knockdown rebuild?

Loans for knockdown rebuilds fall under Renovation Loans from most banks or lending institutions. If you conduct your knockdown rebuild with a licensed builder, you can borrow 90% of the land’s value, or 95% of the land’s total cost, plus construction costs.

What is a site inspection, and why is it important?

A site inspection is when a builder visits your land to assess site conditions. This may include soil type, slope, access, and any factors like tree removal or bushfire zoning. The results can impact site costs and council requirements for your rebuild project.

What is a knockdown rebuild cost calculator?

A knockdown rebuild cost calculator is a tool that gives you an estimate of how much it might cost to demolish your existing home and build a new one on the same block. It typically factors in your location, home design, site conditions, and other costs involved in the rebuild project. It’s designed to help you plan your budget before speaking to a builder.