National property and construction consultants, Davis Langdon, say that Brisbane is entering a period where there will be significant demolition activity in the inner city area to make way for new and larger buildings.

Davis Langdon’s Brisbane director, Malcolm Butcher, said the cost of demolition is an issue that many developers and building owners will have to consider as the city centre evolves over the coming decade.

“We all look at the cost of construction, but the cost of demolition also has to be considered.

Mr Butcher said the cost of demolishing an inner city building varied according to construction type, including any asbestos content, access to the building and its location.

“We have calculated that the cost to demolish a typical 10 storey, 8000 square metre office building in the city could range between $800,000 and $1.2 million,” he said.

“As the inner city area evolves and greater density is required we believe the number of site amalgamations and demolition for both commercial and residential and mixed use projects will increase.” 

Mr Butcher said in some instances there can be a tax write off where a building is demolished provided it is less than 40 years old.

However, Mr Butcher questions if a changing community expectation towards environmentally sustainable outcomes will raise concerns over demolishing existing buildings to build new ones.

“Whilst a new more energy efficient building is created it will take around 290 years to regain the embodied energy in the new building.” Mr Butcher pointed out.

“The option of refurbishing an older building has significant other benefits.

“If a building was refurbished, retaining the structure and the shell, but including installation of more efficient air conditioning, adding water saving devices and looking at more efficient lighting, it could save between 30 and 50 percent of the cost of a new building.

“You also have to consider that a new building will attract current planning laws especially in relation to the provision of limited carparking.”

Mr Butcher said that if owners decided on the refurbishment option they would also need to consider that if 50 percent of the building’s volume was being upgraded the building would have to be fully updated to reflect current Building Code of Australia legislation.

“We are going to see some significant changes as the city evolves and we believe the number of demolition and construction projects will increase but the community will increasingly seek assurance that this is the best path,” he said.

For further information, contact Meaghan Jones at Davis Langdon's Communications Department on +61 3 9933 8800 or email mjones2@davislangdon.com.au