As Australia races to meet its ambitious target of building 1.2 million new homes by 2029, new data reveals that Brisbane may be on the cusp of a major transformation.

According to the latest figures from the ABS, over 1,976 homes were approved for demolition across Brisbane in the 12 months to March 2025—making it the third highest in the country, just behind Melbourne and Sydney. While that might not make Brisbane the current “knock down capital,” it’s quickly catching up—and the city’s underlying potential tells us this number could soon surge.
What’s Driving the Trend?
While demolition numbers dipped slightly from 2106 the year prior, economists believe we may be on the edge of a fresh building boom. Why? Because interest rates are finally starting to fall, and property prices continue to climb in Brisbane. This combination could reignite developer activity, pushing many more older homes under the wrecking ball.
As REA Group senior economist Anne Flaherty puts it:
“Demolitions happen because new homes are being built.”
Most demolished sites are being replaced by higher-density housing, townhouses, duplexes, or entire apartment blocks, especially in well-located suburbs close to transport and jobs.
Why Brisbane Is Poised for a Boom
While Melbourne and Sydney dominate in raw numbers, Brisbane is uniquely positioned for a rapid rise in knockdowns and rebuilds due to:
- Growing population and infrastructure investment
- Shift toward densification in key transport corridors
- Strong developer interest in subdividing older lots
And with interest rates likely to continue dropping and demand for new housing increasing, Brisbane may be next in line to lead the knock down rebuild trend.
What This Means for Homeowners and Developers
For homeowners sitting on older properties that aren’t heritage listed, in well-located suburbs; this may be the perfect time to consider a knock down rebuild or subdivision. And for developers, Brisbane offers significant opportunity to capitalise on evolving planning policies and strong long-term demand.
With market conditions beginning to favor construction again, the bulldozers could soon be busy across the River City.