Demolishing and rebuilding a home is an increasingly popular choice for homeowners across Australia. In fact, up to 30% of homes are now demolish-and-rebuild projects. This trend is largely driven by the desire to live in densely populated areas, particularly cities like Perth.

For some, the appeal lies in already owning the perfect block of land—whether it’s an older home they’ve lived in for years or a property that’s been in the family for generations. A knockdown and rebuild might just be the perfect way to get the custom home of their dreams without leaving a beloved location.

How Much A Demolition Costs

In Perth, demolition costs typically start at $20,000 to $25,000, though it’s not uncommon for the total cost to reach $30,000 to $40,000. This price depends on several factors, from the size of the home to the materials that need to be remove.

A demolition has several stages. Costs can include salvaging reusable materials, preparing the site, acquiring permits, and disposing of harmful materials like asbestos. Each step adds to the overall cost, so it’s important to plan accordingly.

Knockdown Rebuild Costs

The costs above are simply for removing an existing home. Building a new home on the same site incurs it’s own costs, and you can expect a starting price of $350,000 to build a new home. This brings the total cost of a knockdown and rebuild a starting price of $400,000 – $450,000. It’s not uncommon for a new home build to cost substantially more, depending on the size, quality and design of the build.

What Factors Influence The Demolition Price

Location & Accessibility

The ease of accessing your property can significantly impact costs. Hard-to-reach areas may require specialised equipment or additional time, both of which add to the final bill.

Size

Demolition costs are often calculated on a per-square-metre basis, meaning larger homes will generally cost more to demolish.

Materials

The materials used in your home also play a major role in determining demolition costs. Different types of materials require varying levels of effort to remove and dispose of:

  • Inert Materials: Concrete, brick, tile, and limestone are often removed and recycled.
  • Organic Materials: Timber, plasterboard, doors and similar must be separated and disposed of separately. If the demolition requires the removal of trees or plants, this will also add to the cost.
  • Harmful Materials: Asbestos and similar substances necessitate specialised removal. As an example asbestos normally costs 2-3x more to remove.

Choosing A Knockdown Rebuild

Demolishing a home can be the right decision in several scenarios:

  • You love your location but want a more modern home.
  • You own a large block that can accommodate a rebuild.
  • Your existing home has become unlivable due to structural issues or extensive damage.

Is a demolition rebuild cost-effective?

A demolish-and-rebuild project can be more cost-effective than purchasing an established home in the same area, particularly in high-demand suburbs. Building costs for new homes in Perth are at record highs due to a lack of available land, skills and supply shortages. However, if your property isn’t in an expensive location, rebuilding may not be the most economical choice.

Renovating vs Rebuilding

Renovations are typically cheaper than a full rebuild, depending on the scope of work. If you’re looking to expand your space, a home extension might be a viable alternative. However, for those seeking a complete overhaul or a significant modern upgrade, rebuilding often makes more sense in the long run.

How is a demolition or knockdown rebuild financed?

There are several financing options available for a knockdown rebuild. Cash, construction loans, redrawing from your existing home loan, getting additional finance based on the equity in your current property are all options. It’s worth noting that many standard mortgages won’t cover demolition and rebuild costs, and if the home you’re demolishing has a current mortgage there may be other factors to consider, so exploring these specialised options and talking with a finance specialist is essential.

Do I need planning permission?

Yes, planning permission is required for both demolition and rebuilding. Your demolition or building company will usually assist with obtaining the necessary permits. The specific requirements depend on factors like:

  • Local zoning regulations.
  • Heritage listings or other special designations.
  • The type and size of the new build.

How long does a demolition take?

A typical demolition takes anywhere from 4 to 12 weeks. During this time, you’ll need to arrange alternative living accommodations. Factors like property size, material disposal, and permit approvals can all influence the timeline.

Talk With An Expert

Demolishing and rebuilding your home is a significant decision with many considerations. From costs to financing to timelines, understanding the details ensures a smoother process. If you’re thinking about starting your own demolish-and-rebuild project in Perth, the team at Chross Homes can guide you every step of the way.