Australia’s top demolition suburbs
What drives people to knockdown and rebuild property and what impact does it have on local property prices? Ray White Group Chief Economist Nerida Conisbee set out to answer both questions, by combining building approvals data from the Australian Bureau of Statistics and property price data from Neoval.
Ms Conisbee found a large amount of demolitions in Melbourne (which had 34,490 houses approved for demolition between 2019 and 2024) and Sydney (32,578); a moderate amount in Brisbane (11,135), Perth (9,327) and Adelaide (5,316); and a small amount in Canberra (1,769), Hobart (498) and Darwin (175).
“What drives some suburbs to see more homes knocked down? In most areas, the main driver is people wanting nicer homes. In these suburbs, the blocks are large, the areas have become more desirable over time and the homes may be rundown or of a type that is no longer so popular. Increasingly however, homes are being knocked down to develop higher densities,” she said.
Regardless of why owners decide to demolish their homes, suburbs with higher levels of knockdowns generally experience higher levels of price growth, according to Ms Conisbee.
However, the link between the two is not as straightforward as it might seem.
“Areas with the highest price growth (around $1.5-1.8 million over five years) typically show moderate levels of knockdown activity rather than the most intense redevelopment. This challenges the assumption that more knockdowns automatically lead to stronger gentrification or price growth. Suburbs experiencing very high knockdown counts (400-600 demolitions) show varied price performance. Some achieve substantial growth (around $500,000-$600,000), but they don't necessarily outperform areas with fewer knockdowns,” she said.
“The data suggests that while knockdown-rebuilds contribute to neighborhood transformation, they represent just one factor among many influencing property values. Local market dynamics, amenities, location desirability, and broader economic factors all play critical roles in determining price trajectories in Australian suburbs.”
The suburbs with the most knockdowns
The suburbs experiencing the highest rates of knockdowns, according to Ms Conisbee, are predominantly affluent, established areas with significant property value. This is, of course, not surprising – these locations combine desirable attributes that make them prime candidates for substantial redevelopment. The top suburbs were:
Greater Melbourne
- Balwyn North
- Glen Waverley - East
Greater Sydney
- Ermington - Rydalmere
- North Ryde - East Ryde
Greater Perth
- Riverton - Shelley - Rossmoyne
- Nedlands - Dalkeith - Crawley
Greater Brisbane
- Camp Hill
- Wavell Heights
Greater Adelaide
- Rostrevor - Magill
- Windsor Gardens
Australian Capital Territory
- O’Connor
- Narrabundah
Greater Darwin
- Nightcliff
- Fannie Bay - The Gardens
Why wealthier suburbs have more knockdowns
Ms Conisbee said there were four main reasons knockdowns were more common in expensive suburbs.
- These suburbs often have ageing homes sitting on large blocks of land.
- The owners often have high incomes and can afford to do knockdown-rebuilds.
- As the value of their land rises, so does the incentive to maximise the value of each block through larger, more luxurious homes.
- Building a new home in a premium suburb with high demand is likely to deliver a stronger return on investment than in an outer suburb with less demand.
Please get in touch if you’re thinking about doing a knockdown-rebuild of your own. It’s vital you have your finance in place before the project starts, so you can understand your budget and be confident of funding.