Knockdown rebuild statistics in Australia: how many homes are demolished and rebuilt each year?

Australia approved 30,864 KDR dwelling units in 2024–25, down 29% from the 2021–22 peak of 43,638. That is roughly one in six of all new residential dwelling approvals nationally, with KDR projects recording their lowest share of total approvals at 16.7%.

KDR approvals moved through three clear phases between 2019–20 and 2024–25:

• 2019–20 to 2021–22: Approvals rose from 36,492 to 43,638¹, during a period that coincided with the federal HomeBuilder grant and low interest rates.
• 2022–23: Approvals fell 25% in a single year to 32,755, as interest rates rose and construction costs increased.
• 2023–24 to 2024–25: Activity levelled off, with the 2024–25 total of 30,864 sitting just 86 below the prior year.

Total residential approvals rose to 184,834 in 2024–25¹, with increases concentrated in apartments and greenfield housing. KDR approvals did not follow the same pattern, so KDR's share of all new residential approvals fell to its lowest level in the ABS data series.

These figures count approved dwelling units, not individual knock-down events. A single site that produces two new homes counts as two approved dwellings, but only one demolition.

New South Wales (10,959 approvals) and Victoria (10,208) together accounted for 68.6% of all KDR approvals in 2024–25, a pattern that has held every year in the data series. Both states recorded fewer approvals than in 2023–24, with NSW down 9.3% and Victoria down 4.7%, though they remain the two largest KDR markets nationally.

Both states have large established suburbs, ageing housing stock, strong land values, and planning frameworks associated with infill development. These conditions are commonly linked with higher knockdown rebuild activity, although the ABS data does not isolate which factors explain approvals in each state.

Queensland, Western Australia and South Australia all grew in 2024–25. Queensland rose 13.9% to 5,844 approvals, although a single unusually high December 2024 reading of 1,466 (against 273 to 529 in every other month) accounts for all of that rise. Western Australia rose 19% to 2,090. Queensland and Western Australia both grew from smaller bases than NSW and Victoria, which remained the two largest markets.

South Australia's reported figure of 1,193, more than double the 581 recorded in 2023–24, should be treated with caution. Monthly approvals there ran above 90 in nine of the 12 months, peaking at 173 in April 2025, compared with 19 to 85 a month in 2023–24. Since 2021, most South Australian demolitions no longer need an approval, so the ABS captures only part of the state's KDR activity¹. The ACT (398) and Tasmania (134) remained low-volume markets.

The average approved value of a KDR detached house reached $1,037,336 in June 2025, compared with $434,960 for a standard new detached home¹. That is a premium of 138%, up from around 65% in July 2019. KDR approved values have risen 110% since 2019, more than twice the 45% increase recorded for standard new detached houses over the same period.

This comparison is based on approved building values, not final construction costs. KDR projects tend to be in established suburbs where land values are higher, and the homes are typically larger and better specified than volume-built homes on greenfield sites. The data does not adjust for location, size, or quality, so the gap reflects both where KDR happens and what gets built, not construction costs alone.

Monthly KDR approvals nationally ranged from a low of 1,502 in January 2025 to a high of 4,448 in March 2021. The chart below shows how approvals trended month by month from July 2019 to June 2025.