Why Canberrans are turning to knockdown rebuilds

If you want to build a brand new home in an old part of town, you’ll usually have to knock down an existing house and start from scratch.

While heritage-listed properties scattered throughout the capital are worthy of a time-consuming and often costly restoration, there are other older properties that haven’t aged as well or earned their heritage status. The fate of these homes often includes a wrecking ball.

Most of these properties can be found in Canberra’s secondary neighbourhoods – the older suburbs such as Reid and Red Hill are largely populated with heritage homes that are subject to restrictions.

However, if you cast your net a little wider to O’Connor in the north or Yarralumla in the south, you will find a mix of newly built homes, alongside older homes that are reaching the end of their lifespans.

Impact Properties Gungahlin principal Shaun Iqbal says knockdown rebuilds remain popular in Canberra and his agency manages a database of clients who are specifically looking for older homes in established suburbs.

“The majority of buyers actually prefer the feel and touch of a new home and they prefer that someone else does the hard work, but we do see a good amount of clientele who prefer to do it themselves over time,” Iqbal says.

Iqbal says potential project buyers are typically looking for a larger block, of about 700 square metres plus, to allow enough space for a larger home or swimming pool.

The result, he says, is cheaper for those with industry experience, however for the average buyer the cost of buying a project will be similar to buying a finished product.

Iqbal says whether you’re looking for a new home in an established suburb or a blank canvas on which to create your own, buyers should speak to agents and get their name on a database.

“Clients on a database have the opportunity to see the property first, so it’s very hard if buyers are relying on their own research,” Iqbal says.

SOTA Custom Homes director Rama Heidari says those considering a knockdown rebuild should carefully consider the pros and cons of undertaking the project.

“If considering knockdown rebuild of an old house, you need to be well aware and familiar with the regulatory processes and costs involved,” Heidari says.

“Compared to a brand new block in newly developed suburbs, there is a considerably higher amount of fees, approvals and paperwork that needs to be undertaken and the timeframe could easily take more than a year.”

“When demolition of the old house is also involved, then the process will take extra costs and time accordingly.”

Those keen on a rebuild with the knockdown already taken care of, could find value in the remediated Mr Fluffy blocks that will be sold at auctions each month over the next few years.

The first 10 blocks went under the hammer in April, with the next auctions scheduled for later this month.

The next release includes blocks in Belconnen, the inner north, Tuggeranong, Weston Creek and Woden.

Independent Property Group director of project marketing Wayne Harriden says the blocks have attracted interest from families seeking to buy and build in an established area, as well as builders. “I see what knockdown rebuilds sell for in particular suburbs and at the moment these are cheaper.”

“They’re selling for less and you don’t have the cost of demolition. It’s a great opportunity for people who want to build a new home in an established suburb and they can save time with the approval process.”

While the reserve price on each block at auction will not be less than the amount offered to the former owners, costs are still competitive when compared with the price of land in Canberra’s greenfields.

What to consider before a knockdown rebuild

• The costs – It is not necessarily cheaper to buy an old house and start again. Demolition and construction costs will quickly add up and the location and the end result has to be worth it to you.
• Your experience – Impact Properties’ Shaun Iqbal says the knockdown rebuild is a great option for those with industry knowledge or experience. Builders, for example, can find the process a cost-effective solution.
• The timeframe – Once demolition and approvals are factored in, the timeframe could be well over a year, SOTA Custom Homes Rama Heidari says.
• The block – Older blocks are highly sought-after, according to Iqbal. He advises buyers to put their name on an agent database to increase their chances of finding what they’re after.
• The alternatives – The remediated Mr Fluffy blocks are being sold at auction every month. Independent Property Group’s Wayne Harriden says the parcels of land have proven to be a cost effective solution to knockdown rebuilds.