You love the location. The street, the school zone, the view from the backyard. But the house itself — the floor plan, the era, the bones — isn't what you want for the next 30 years. A knockdown rebuild lets you keep everything you love about where you live and start fresh with a home designed precisely for your life. Here's what you need to know to do it well in Tasmania.

What Is a Knockdown Rebuild?

A knockdown rebuild (KDR) is exactly what it sounds like: you demolish the existing dwelling on a block you already own — or purchase with demolition as the plan — and build a new home in its place. The land stays. The house goes. You get a custom-designed new home on a site you've already chosen, in a neighbourhood you already know.

It's an increasingly common path for Tasmanian homeowners who've accumulated equity in an established-area property but find the existing house no longer fits — through growing families, changing life stages, or simply the gap between what they want from their home and what they currently have. It's also relevant for people buying established properties in desirable locations specifically with the intention of building.

In Tasmania, where new residential land releases in well-established areas are limited, the knockdown rebuild is often the only viable path to building a new custom home in the suburb you actually want to live in.

When Does a Knockdown Rebuild Make Sense?

A KDR tends to make the most sense when several of these conditions are true:

• The location is right but the house isn't. You're in a suburb you want to stay in — close to schools, family, work, or lifestyle amenities — but the existing dwelling doesn't meet your needs and a renovation or extension would be prohibitively expensive or structurally insufficient.
• The structural cost of renovation approaches new-build cost. When a home needs significant structural work — a new roof, new framing, full rewiring, asbestos remediation, or major foundation work — the cost gap between renovating and rebuilding narrows fast. At some point, you're spending near-rebuild money to keep old bones.
• The floor plan can't be fixed without demolition. Some layouts are irredeemable. If the orientation is wrong (living areas facing south), the rooms are too small to reconfigure, or the structure doesn't permit the open plan your family needs, a renovation just preserves the problem. A rebuild solves it.
• You want high-performance building standards. Adding double-glazing and a heat pump to an old house doesn't make it a high-performance home — the thermal envelope is fundamentally compromised. A new build allows you to design and construct to modern thermal, airtightness, and acoustic standards from the ground up. If you're interested in high-performance construction or Passivhaus principles, a knockdown rebuild is the only way to fully achieve it on an established block.
• You have time and somewhere to live during construction. A knockdown rebuild is a 12–20 month project from demolition to handover. If temporary accommodation is not practical, the timeline changes the calculus significantly.

The Knockdown Rebuild Process in Tasmania

A Tasmanian knockdown rebuild follows a distinct sequence that's different from a greenfield build. Here's how the process typically unfolds:

1. Planning and Feasibility

Before anything is demolished, you need to confirm the site is viable for what you want to build. A feasibility assessment with Davies covers your council's planning scheme requirements for the specific property — setbacks, site coverage limits, height restrictions, and any overlays (heritage, bushfire, flooding, or vegetation) that affect the new design. It also gives you a realistic cost range so you can decide whether the numbers work before you're committed.

In some Tasmanian councils, an existing non-conforming structure — one that doesn't comply with the current planning scheme — can legally remain in use but cannot be rebuilt if demolished. Always confirm the planning position before demolishing: in rare cases, the existing dwelling has planning approval that a new build would not receive.

2. Design

Concept design for the new home happens before demolition in most cases. You want an approved design and a fixed building contract before you knock the house down — particularly if you're financing the project through a construction loan. Lenders typically require a fixed-price building contract before the demolition can proceed.

3. Demolition Permits

In Tasmania, demolishing a dwelling requires a demolition permit from your local council before any works commence. The permit application typically requires confirmation that utilities (electricity, water, gas) have been or will be disconnected, a site plan, and confirmation that the demolition contractor is appropriately licensed.

Heritage is an important consideration. If the property is heritage-listed or within a heritage conservation area, demolition may be significantly restricted or prohibited. Your council's planning department or a heritage consultant can advise on the specific constraints before you proceed. This is a non-negotiable first check for any established-area property in Launceston, Devonport, or Hobart's inner suburbs.

4. Asbestos Assessment and Removal

Any home built before 1990 should be treated as potentially containing asbestos until proven otherwise. In Tasmania, asbestos removal from a dwelling must be carried out by a licensed asbestos removalist before demolition can proceed. An asbestos assessment by a licensed assessor will identify the type, quantity, and location of any asbestos-containing materials — and the report is required as part of the demolition process.

Asbestos removal costs vary significantly based on the type (bonded vs friable) and quantity. Budget for this as a potential line item in your pre-demolition costs: $5,000–$20,000 is typical for standard residential removal; more complex situations involving friable asbestos can cost substantially more.

5. Demolition

The demolition of a typical single-storey Tasmanian home takes 2–5 days of active work. The site is then cleared of rubble, with disposal to a licensed waste facility. Depending on the condition of the original house, some materials — timber framing, brickwork, steel — may have salvage value. A reputable demolition contractor will advise on what's worth retaining.

Service connections — water, sewer, electricity, gas, telecommunications — need to be formally disconnected prior to demolition and then reconnected (or newly connected) as part of the construction process. Your builder and utilities providers will manage this, but there is a lead time for disconnection and reconnection that needs to be factored into the overall schedule.

6. Construction

Once the site is cleared, construction proceeds exactly as it would for a new build on vacant land. The existing footprint doesn't constrain the new design — the new home can be oriented, positioned, and sized differently to the original. The existing site conditions (soil type, drainage, access) do matter, which is why a geotechnical assessment early in the process is worthwhile.

Construction timelines for a custom home in Tasmania typically run 10–16 months from slab to handover, depending on complexity. Combined with the pre-demolition and demolition phases, total project duration from contract to handover is typically 14–20 months.

What Does a Knockdown Rebuild Cost in Tasmania?

A knockdown rebuild in Tasmania has two cost layers: the demolition and pre-construction costs, and the build cost of the new home.

The biggest budget risk in a knockdown rebuild is what gets found once the old structure is removed: contaminated soil, unexpected services, poor ground conditions, or underground tanks that were never disclosed. A pre-demolition site investigation — including a soils assessment and a check of the council records for the property — can identify these risks before they become budget shocks.

Hidden costs across the full project can add 15–30% above initial estimates if these risks aren't identified early. The mitigation is thorough feasibility work upfront — the kind of process Davies runs on every project before a contract is signed.

KDR vs. Renovation: How to Decide

The renovation versus rebuild question comes down to three factors: structure, economics, and performance.

Structure: If the existing frame, roof, and footings are sound and the layout can be modified to meet your needs, a renovation or extension will typically be less disruptive and less expensive than a rebuild. If the structure is compromised, poorly oriented, or fundamentally wrong in layout, you're paying to preserve a problem.

Economics: Get a detailed renovation quote and a building contract for a new home side by side. The gap is often smaller than you expect once the renovation scope is fully detailed. At Davies, we provide 24-hour budget estimates at feasibility — meaning you can make this comparison with real numbers, not guesses.

Performance: If your long-term goal is a highly energy efficient, quiet, and healthy home, the performance ceiling for a renovated pre-1990s house is substantially lower than for a purpose-built new home. The thermal envelope, airtightness, and acoustic performance of a well-built new home cannot be replicated by upgrading an old one. For clients who care about high performance, the rebuild is almost always the right call.

Frequently Asked Questions

Can I stay in the house during a knockdown rebuild?

No. Once demolition begins, you'll need temporary accommodation for the duration of the project — typically 14–20 months in total. This is one of the most significant practical considerations for KDR projects. Some homeowners rent during construction; others stay with family. The accommodation cost needs to be factored into your total project budget.

Does a knockdown rebuild qualify for the First Home Owner Grant?

Yes, if you're an eligible first home buyer and the property has never previously been occupied as a principal residence after the rebuild. In practice, the FHOG applies to the new dwelling, not the old one. If you're purchasing a property to demolish and rebuild as your first home, the grant eligibility is determined by the new home. Confirm the specific circumstances with the Tasmanian State Revenue Office or your lender, as the details matter. Note that Tasmania's current $30,000 rate applies to building contracts signed by 30 June 2026 — see our FHOG guide for the full picture.

Do I need council approval to demolish my house in Tasmania?

Yes. A demolition permit from your local council is required before any demolition works commence in Tasmania. The permit application requires confirmation of utility disconnections, a site plan, and details of the licensed demolition contractor. Heritage properties or properties adjacent to heritage places have additional requirements that can significantly affect timelines.

Can I use a different builder for the demolition and the new home?

Yes, but most clients find it simpler to work with a single builder who manages the entire project — coordinating the demolition contractor, the pre-construction services, and the new build under one contract and one point of responsibility. At Davies, we manage the full KDR process: feasibility, design, demolition coordination, and construction. This gives you one team, one contract, and one throat to grab if anything goes wrong.

Why Choose Davies for Your Knockdown Rebuild?

Davies has been designing and building custom homes across northern Tasmania since 2009. Knockdown rebuilds are a significant part of our portfolio — they sit at the intersection of design quality, planning complexity, and construction precision that defines our work. A few things that make our approach different:

• Feasibility first. We won't sign a building contract until we've done the feasibility work to know the project is viable, correctly permitted, and priced to budget. That protects you from the most common KDR failure modes — the surprises that blow budgets and break timelines.
• Design-led construction. Our design process starts with your brief — what you want from your life in this home — and works forward from there. The existing site informs the design; the design isn't compromised by the footprint of the old house.
• Award-winning homes. Our portfolio includes some of Tasmania's most recognised residential projects. Our recognition reflects a consistent commitment to design quality and construction precision that applies equally to a KDR as to a greenfield build.
• Single point of responsibility. We manage the full project — from the first feasibility conversation through to the day you get your keys. You deal with one team throughout.

Ready to Explore a Knockdown Rebuild?

The first step is understanding whether a KDR is the right path for your specific property and brief. Our feasibility process gives you honest answers — about what's permitted, what it will cost, and what the best approach is for your situation. There's no commitment required at that stage; just clarity.

Get in touch to start the conversation with the Davies team. Or explore our design and construction process to understand how a Davies project works from first contact to handover.