What’s the Cost of Knock Down and Rebuild in Canberra?

The quick answer

Tossing up whether to renovate or rebuild? The cost of a knock down and rebuild in Canberra generally starts from $600K, depending on your block, design, and the level of finish you’re going for. While that’s a significant spend, it can often be cheaper per square metre than a full-scale renovation—especially once you factor in structural changes, compliance upgrades, and the hidden surprises that come with older homes.

Why knock down and rebuild is on the rise in Canberra

Canberra boasts many charming suburbs with older homes that, while full of character, often come with challenges such as outdated layouts, poor energy efficiency, and hidden issues like asbestos. Renovating these properties can be unpredictable and costly. Opting for a knock down rebuild allows homeowners to stay in their beloved neighbourhoods while enjoying a modern, efficient home tailored to their needs.

That’s where knock down and rebuild comes in. It’s a chance to:

• Stay in your neighbourhood
• Design something that suits your lifestyle
• Create a space that feels comfortable and promotes wellbeing
• Reduce utility costs
• No wasted space, no awkward add-ons
• Much greater resale value

With a focus on minimalist design, energy efficiency, and smarter layouts, more locals are choosing to rebuild instead of wrestle with awkward renos.

A breakdown of costs

So, what are you really paying for?

When we say knock down and rebuild, there’s a lot wrapped up in that price tag. In Canberra, where soil conditions and planning approvals vary suburb to suburb, it’s worth knowing what you’re in for.

Here’s a rough cost breakdown:

Cost Area	Ballpark figures (AUD)
Demolition	$20K – $50K+
Site prep (soil tests, earthworks, access)	$20K – $80K+
Build (turnkey)	$550K – $1M+
Extras (landscaping, pool, solar, custom finishes)	$50K – $300K+

So you’re looking at $600K and up for a quality new home in Canberra. But here’s the kicker—compared to a large-scale renovation, the cost per square metre for a knock down rebuild is often significantly lower.

Why not just renovate?

Renovations might seem cheaper on the surface, but they often come with baggage. Here’s why many homeowners end up choosing a knock-down rebuild instead:

• Unseen problems: Renovations can reveal hidden issues—like asbestos, poor insulation, termite damage, or dodgy wiring—that quickly blow out budgets.
• Patchwork results: It’s hard to fully modernise an old home without it feeling like a mash-up of old and new. You may end up compromising on layout, flow, or energy efficiency.
• Compliance headaches: Major renos still require council approvals, and if the work exceeds 50% of the home’s value, NCC updates may require you to upgrade the entire house—not just the bit you’re fixing.
• Design limitations: You’re often working within the constraints of the existing footprint and structure, which can limit your design freedom.
• Disruption and delays: Living through a reno can be noisy, dusty, and full of surprises. Timeline blowouts are common, especially when hidden issues pop up mid-build.
• Cost creep: Renovations usually cost more per m² than new builds, especially when bathrooms, kitchens, or structural changes are involved—and the more complex the job, the more likely you’ll encounter variations.

A knock-down rebuild skips the guesswork. You start fresh with a fully compliant, energy-efficient home that’s built exactly the way you want—no compromises, no nasty surprises.

Cost comparison: knock down rebuild vs. renovation

We don’t do guesswork or vague square metre rates—every home and block is different, and our fixed-price quotes are based on the full picture. But just to keep things simple for this article, we’ll use average per square metre costs to compare knock down rebuilds and major renos.

• Knock Down Rebuild: Building a new home in Canberra on average costs between $1,940 and $3,950 per square metre, depending on design complexity and material choices.
• Renovation: Extensive renovations can often exceed these costs per square metre, particularly when structural changes are involved or unforeseen issues arise during construction.​

Given these figures, a knock down rebuild can offer better value per square metre, providing a brand-new home without the uncertainties that often accompany major renovations.

Understanding demolition costs

Demolishing an existing structure in Canberra generally starts from $20,000 and is influenced by factors such as:

• Size and structure of your current home
• Asbestos removal (which is common in pre-1980s builds)
• Access for machinery and waste removal
• Disconnection of essential services

Understanding site preparation costs

Site prep is the unsung hero (or hidden headache) of any knock down rebuild. It’s the work that happens before the build starts, and in Canberra, it can have a big impact on your overall budget. Costs typically start from $20,000, but this can vary widely depending on your block.

Here’s what’s involved:

Soil testing & classification

Before any foundations are poured, you’ll need a geotechnical report. This tests the soil type and determines how reactive it is (i.e., how much it moves with moisture).

Clay-heavy soils—common in suburbs like Belconnen, Gungahlin, and parts of Tuggeranong—usually require deeper, more expensive footings.

Earthworks

This includes levelling your block, removing debris, and sometimes cutting or filling to get a level building pad.

Sloping blocks (like those in Weston Creek or Hackett) often need retaining walls, extra drainage, and excavation work—which adds cost and complexity.

Site Access

If your block is hard to reach (think: rear access only, narrow driveways, battle-axe lots), expect to pay more for machinery, scaffolding, and labour.

Builders may also factor in costs for things like temporary fencing, erosion control, and truck access.

Why it matters: Site prep might not be the most exciting part of your build—but getting it right is crucial. It protects your new home from future headaches like poor drainage, shifting foundations, or stormwater issues. A well-prepped site sets the stage for a smoother build and a sturdier, longer-lasting home.

Final thoughts

For many Canberrans, a knock down rebuild offers a practical path to achieving a modern, energy-efficient home in a familiar neighbourhood. With costs often more predictable and favourable per square metre compared to extensive renovations, it’s an option worth considering if your current home no longer meets your needs.