Knockdown Rebuild vs Renovation: How to make the Right Choice for Your Melbourne Home.
Knockdown Rebuild, or Renovation?
How to make the right call for your site, timeframe and budget.
If you're deciding between a knockdown rebuild vs renovation in Melbourne, you're not alone. Many homeowners weigh up whether to renovate their existing house or start fresh with a brand new build. In this article, we’ll help you compare both options.
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When it comes to transforming your home, one of the biggest decisions you’ll face is whether to renovate or knock down and rebuild. Both options have their merits—but the right choice comes down to your goals, site conditions, budget, and long-term vision. At Formery, we believe good design begins with good strategy. Here’s how to decide what’s right for you.
Pros and Cons of Renovating Your Home
A home renovation can be ideal if:
Your existing home has solid bones and character worth preserving
You're working with a smaller budget or want to stage work over time
Local planning overlays restrict demolition
You love the layout, location, or feel—but just need a refresh
From reworking layouts to modernising interiors and improving energy efficiency, a thoughtful renovation can dramatically improve how your home functions and feels, without the cost or disruption of a complete rebuild.
But there are limits. Older homes often come with hidden surprises—structural issues, outdated services, or materials that no longer meet code. That’s why we always begin with a feasibility study, so you’re not designing blind.
Pros and Cons of a Knockdown Rebuild
A knockdown rebuild is often the better choice if:
You want a completely custom design, tailored to your lifestyle and future needs
The existing structure is too compromised or costly to upgrade
You're maximising resale value or developing for return
You’re after better energy performance, spatial flow, or a more modern aesthetic
With a blank slate, you can optimise orientation, zoning, sustainability, and materiality from the ground up—without working around existing constraints.
And while rebuilds involve a bigger upfront investment, they often result in lower maintenance costs, better energy ratings, and a higher long-term return on investment.
Cost Comparison: Renovation vs Knockdown Rebuild
Every site, every client, and every brief is different. The best approach isn’t always obvious—but that’s where we come in. At Formery, we don’t just draw plans—we guide you through the process with clarity, creativity, and care. Whether you're dreaming of a modern rebuild or a character-filled renovation, we’ll help you make a confident, informed decision from day one.
In Melbourne, major renovations typically range from $3,000 to $4,000 per square metre, depending on complexity, finishes, and existing structure condition. Knockdown rebuilds usually range from $2,000 to $3,000 per square metre for standard builder designs, and $3,000 to $5,000 per square metre for bespoke architectural homes like those designed by Formery.
One key cost factor: with renovations, hidden issues in the existing structure can quickly escalate budgets — whereas a rebuild offers more cost certainty once demolition is complete.
Timeline Considerations for Each Option
Renovation timelines vary greatly — from 3 to 6 months for cosmetic renovations, to 9 to 18 months for full-scale structural renovations. Knockdown rebuilds in Melbourne typically take around 12 to 18 months from initial planning through to move-in day, depending on site complexity and council approvals.
Council Regulations and Approvals in Melbourne
Council requirements differ across Melbourne. At Formery, we guide our clients through this process as part of our architectural services, helping avoid delays and ensuring a smooth approval pathway.
Renovations often require building permits, and if heritage overlays or planning overlays apply, planning permitsas well.
Knockdown rebuilds require demolition permits, and most will also require a full building permit for the new dwelling. Some sites may also need planning approval if affected by overlays.
FAQs: Knockdown Rebuild vs Renovation in Melbourne
Is it cheaper to renovate or knockdown rebuild?
It depends on your home’s condition and goals. If extensive structural changes are required, knockdown rebuild is often more cost-effective in the long run.
How long does a knockdown rebuild take in Melbourne?
Typically 12 to 18 months from initial planning to completion.
Does a knockdown rebuild add more value than a renovation?
A knockdown rebuild allows full customisation and can significantly increase property value, especially in desirable Melbourne suburbs.
Can I live in my house while renovating?
In some cases — minor renovations allow you to stay on site. Major structural renovations usually require moving out temporarily.
Knockdown Rebuild in Melbourne: What You Need to Know
Ready to explore your options?
📥 Download our FREE Knockdown Rebuild vs Renovate Guide
Packed with cost breakdowns, planning tips, this guide will help you weigh the pros and cons for your own home.
🎯 Book a FREE consultation with our design team today.
Let’s talk about your goals, your site, and what’s possible—we’d love to help you design a home that truly feels like yours.
Let’s build your forever home together.
Get in touch with Formery at hello@formery.com.au or call us
