New estate blocks have been shrinking. The average new lot in Greater Geelong fell from 646m² in 2007-08 to 476m² in 2015-16. If you own a block of 600 or 700 square metres, you own something that is no longer being made in Geelong.
This is one of many reasons you might not want to give up your block.
A knock-down rebuild gives you a brand new home in Geelong, on the block you already know and love. Getting a handle on the numbers early makes the process easier to plan for.
In addition to your build, you’ll need to budget for demolition, permits, and design and engineering fees. The upside is that if you already own the land, you won’t need to pay stamp duty.
Every project is priced differently, so treat the figures below as a starting point for a conversation with your builder, not a fixed number.
Key Points
- Demolition and site clearing typically cost around $15,000 to $50,000, depending on the project. Sometimes more if asbestos is present.
- Usual build costs apply, including approvals, permits and design work.
- Staying on land you already own avoids stamp duty completely, which can save you $40,000 or more compared to buying an established property or building on new land.
How much does the demolition cost?
The cost of the demolition varies depending on a few factors.
A single-storey home typically costs $15,000 to $40,000 to demolish and clear, while a double-storey or brick home tends to run slightly higher, often $20,000 to $50,000.
If the home was built before 1990, there’s a chance it contains asbestos. This can add $2,000 to $15,000 or more, depending on severity. Ask your builder if an asbestos inspection has already been factored into your figure.
How much do permits and approvals cost for knock-down rebuilds?
Firstly, a demolition permit is required under Victoria’s Building Act, which is generally $200–$500.
And just like any other build, your knock-down rebuild will need planning and building approvals. A planning permit currently starts from $546.30 and scales up with project value. A building permit for the new home typically costs between $1,000 and $3,000.
If your block sits within a heritage overlay (common in some of the older established suburbs across Geelong, the Bellarine and the Surf Coast), expect additional design and approval costs, often $1,000 to $5,000 or more.
How much does the actual build cost?
The build itself includes design and drafting ($3,000 to $10,000 or more), structural engineering ($1,500 to $4,000), a soil test and contour survey ($500 to $1,500), and an energy rating assessment ($300 to $600).
Once the old home is cleared and approvals are in place, the new build is priced much like any other new home, based on size, design and finish level.
Find out how much existing Enso Homes floor plans cost here, or get in touch to discuss pricing for a custom home.
Build a buffer into the budget
Whatever your total budget lands on, add a buffer of 10% to 15%.
Soil reports sometimes unearth surprises, council conditions shift, and it’s common for a few things to change between quote and completion. Budgeting for that upfront is far less stressful than having to find the money partway through.
Accommodation, storage & other things to consider
A knock-down rebuild also means a stretch of time without a home to live in. Many families check into a hotel or rent nearby for the length of the build. Make sure to work that into your overall budget from the start.
Storage is another one. You’ll need somewhere to keep your belongings and furniture, which could cost another couple of hundred dollars a month.
A few smaller things are also easy to overlook: mail redirection, updating your address for insurance and services, and reconnecting internet and utilities at the new home once it’s ready. None of these are big ticket items on their own, but they add up. Budgeting a bit of breathing room for them upfront makes the whole process far less stressful.
Why not just buy an established home instead?
One bonus of building a new home on the land you already own is that you won’t need to pay stamp duty.
In Victoria, stamp duty is only paid when a property changes hands. If you’re doing a knock-down rebuild on land you already own, you’ll save $40,000 to $55,000 or even more, depending on the cost of your build.
There’s also the block itself. If you already love the street, the school zone, and the neighbours, a knock-down rebuild keeps all of that while letting you move into your brand-new dream home.
Summary of knock-down rebuild costs
| Cost area | Typical range |
|---|---|
| Demolition and site clearing (incl. asbestos if present) | $15,000–$50,000+ |
| Permits (demolition, planning, building) | $2,000–$4,500 |
| Heritage overlay costs (if applicable) | $1,000–$5,000+ |
| Design and engineering (drafting, structural, soil test, energy rating) | $4,500–$16,600+ |
| Building and site costs | Browse Enso Homes floor plans or get in touch for a custom home quote |
| Accom, storage + other costs | Varies widely depending on your situation |
| Budget buffer | 10%–15% |
These figures are general Victorian estimates, current as of 2026, and vary drastically by site, council and builder. Always confirm current fees and get a site-specific quote.
Frequently asked questions about knock-down rebuild costs
How much does it cost to demolish a house in Victoria?
Most single-storey homes cost $15,000 to $40,000 to demolish, while double-storey homes tend to cost around $20,000 to $50,000. Asbestos, site access and the size of the home all affect the final figure.
Do you pay stamp duty on a knock-down rebuild?
Not if you already own the land. When there’s no property transfer, there’s no stamp duty payable.
Is a knock-down rebuild cheaper than buying an established home?
It depends on the property, but once stamp duty, agent fees and moving costs are factored in, staying and rebuilding can be more cost-effective, particularly in areas where land values are high.
How much does a knock-down rebuild cost in Geelong?
Costs follow similar ranges to the rest of Victoria, though heritage overlays in some established Geelong suburbs and site conditions across the Bellarine and Surf Coast can alter the approvals and site cost components. A local site assessment gives the most accurate figure.
Enso Homes will work out the cost of your knock-down rebuild
Every knock-down rebuild is different, and the only way to get an accurate figure for yours is a proper site assessment. If you’re weighing up your options in Geelong, get in touch with the Enso Homes team.
