Knockdown Rebuild Costs in Melbourne: A Comprehensive Guide

A knock down rebuild involves demolishing an existing property to create a fresh start and building a new house, making it a popular choice for owner-occupiers and investors aiming to achieve their dream home in their ideal suburb. This approach is often more cost effective than undertaking a major, stressful renovation or buying and moving to a new home, with the Housing Industry Association (HIA) noting it represents nearly a third of all new detached homes nationwide. [Source: REA] 

What are the cost considerations for those wanting to knockdown and rebuild?

Opting for a knock down rebuild allows families to upgrade their home while staying in their existing location or enables investors to purchase in a desirable area and maximise their returns. The growing demand for knock down rebuilds is driven by the scarcity of vacant land, a decrease in the number of both old and new standalone houses on the market, and the suitability of existing properties for redevelopment.

When you build with Carlisle Homes costs will always be fixed, with inclusions, promotions and site costs all made clear at the beginning of the process.

How much does a knockdown rebuild cost?

Choosing a knock down rebuild project offers the advantage of getting a fresh, modern, and energy-efficient home for often less than the cost of major renovations. This approach is also significantly less risky than renovating. Renovations are notorious for running over time and over budget due to the unpredictability of hidden issues, such as structural problems uncovered during the process. These unforeseen challenges can lead to extended timelines and unexpected costs.

In contrast, a knock down rebuild provides you with full control and a predictable path, ensuring your project stays on track and within budget, delivering a brand-new home tailored to your specifications.

What influences the total cost of a knock down rebuild project?

The total of your knock down rebuild cost can vary depending on on a number of factors including: 

• Whether your home is a single or double storey home
• The overall size of your home build including the number of bedrooms, bathrooms and garage spaces. 
• The quality of the new materials and level of inclusions 
• Accessibility to your site and the block conditions

It is crucial to find a builder who offers upfront, transparent and helpful information from the beginning and works with you throughout the entire journey - keeping you educated and informed along the way. 

“Fixed price” can mean different things to different builders, so it’s essential to understand the specifics of what’s included in the price before you place a deposit on your dream home. This includes your site start and completion timeframes, and structural warranties, all of which are guaranteed by Carlisle Homes, but may not be by other builders.

What’s the average price of a knock down rebuild project?

Carlisle builds homes from $450,000 to $1,000,000 in the knock down and rebuild space across Melbourne and Geelong, with costs varying depending on the above scope, build location and individual requirements.

With Carlisle, the rebuild cost includes:

• Design consultation and initial appointments to assess your options
• Site assessment 
• Home design
• All appointments throughout the process including personalised Spectra Showroom consultations with a qualified Interior Designer
• Drawings and contracts 
• Premium luxury 365-day inclusions and exclusive promotional offers 
• Access to our custom home building portal, Carlisle Connect
• Guaranteed commencement and completion timeframes 
• All construction and service warranties including a 25-year structural warranty guarantee exclusive to Carlisle Homes 
• Management of the entire knock down rebuild process 

Comparatively, a major renovation can cost upwards of $250,000 plus any unforeseen costs.  

Pros and Cons of a Knockdown and Rebuild with Carlisle Homes

When considering a knockdown and rebuild project, it’s important to consider the pros and cons to determine what is best suited to your individual situation, lifestyle and preferences. Below, we’ve outlined the key benefits and potential drawbacks of a knock down rebuild to help you make an informed decision. 

“We identified very early on that Carlisle had the best value for money. This took into account the standard inclusions, promos, façades and building costs… At the tender appointment, all costs were explained to us and the final pricing was quite reasonable considering it being a knockdown-rebuild and the amount of extras we added. Highly recommended for knockdown rebuild projects!”

Cassandra and Christopher

Additional costs to consider when embarking on a knockdown rebuild project

There are a number of other costs to consider when you are embarking on a knock down rebuild project. A list of these potential costs are outlined below.

Planning permits

Application fees and processes vary between each local council throughout Melbourne, but every piece of land in Australia has a set of planning and building requirements that specify when a planning permit is required and the levels of compliance required when building a new home.

A knock down rebuild is no different to building in a new land estate, with building and planning permits required ahead of starting on your future home. The difference with a KDR project is that you’ll also need a demolition permit.

Demolition costs

As the property owner, demolition of your existing home is your responsibility and the costs are separate to any building costs associated with Carlisle Homes. Generally, costs are impacted by the quality of access to your property, how much material needs to be removed (including any dangerous material like asbestos) and the presence of other structures close to the home.

You’ll need to source an appropriate demolition contractor and source quotes for removing your existing home.

A place to live during the construction process  

As your existing home will be demolished, you’ll need to find temporary accommodation while your new home is being constructed. This may mean looking into a long-term AirBnb or a short-term rental. 

Other possible costs include:

• Asset Protection Permit
• Construction Building Permit
• Tree Removal Permit and Tree Removal (if applicable)
• Overhead power to underground power 
• Abolishment of services
• Temporary fencing during demolition 
• Services connections
• Driveways, paths and landscaping 

For a full detailed list of the various permits and applications relevant to a KDR project, who manages them, where they can be sourced from and the cost estimates for each, please download our KDR Information pack.