Greenfield land shortage in Sydney leads to knock down rebuild growth

In a report released last year, the Urban Development Institute of Australia (UDIA) said that the Greater Sydney Megaregion (from the Illawarra to the Hunter) is facing a severe shortage of greenfield land. It is predicted that the problem will blow out to an undersupply of more than 25,600 sites by 2030.

The UDIA (NSW) report estimated that demand for new homes across the Greater Sydney Megaregion will run at around 14,000 a year through to mid-2029.

As well as a shortage of supply, lot sizes in Sydney have gradually decreased over the past decade. The latest data from the UDIA has revealed greenfield median lot sizes have dropped in Sydney from an average of 520 square metres per block in 2009 to 362 square metres in 2021. Unsurprisingly, home demolition numbers continue to grow to offset the shortage. ABS data reveals that in the five years from the September 2016 quarter to the June 2021 quarter, there were 33,192 dwellings approved to be demolished across NSW.

What to look for when purchasing a knock down rebuild

Land prices in established suburbs have cooled a little in recent months but will continue to increase over the long run so demolishing an old house and building a new home is a good investment in the long term.

But before you leap in and buy an older home in an established suburb for a knock down rebuild project you need to do your homework.

Firstly, there are many regulations to consider, covering areas such as floods, bushfires, heritage features, soil composition and hydraulic design. At ZAC Homes we work with our clients from the beginning to guide them from land purchase right through to final construction. Here are a few tips to get you started:

Consider location carefully

The location of your property should be high on your list of important considerations when purchasing. Will the area suit your lifestyle and that of your family as they evolve? You need to consider things like proximity to transport and infrastructure, your workplace, schools, shops, and other services and amenities. Are you moving too far away from family and friends?

Simple works best

When it comes to blocks of land, the simpler the better from a cost and access point of view.

That awkward steep block on a busy road might seem like a bargain, but it will be costly to build your dream home on, and it will be difficult to access when building and living in down the track.

At ZAC Homes we are highly experienced in building homes on sloping blocks that require a customised design. We focus on helping clients design a house to respond to the natural topography of the site. We minimise the use of excavation and fill where possible to preserve natural drainage patterns and prevent soil erosion. Just be aware that building on a sloping block will present more challenges.

Consider orientation and outlook

Not every block of land in an existing suburban location will have a good orientation and outlook. When you’re considering a purchase, look at the sun’s movement and how it will move throughout your new home at various times of the day.

You may be able to change the orientation and outlook from the current dwelling that you will be demolishing, but there will be restrictions on setbacks so take this into consideration. Careful placement of your new dream home will also optimise your views from different areas of the house.

Privacy matters

Take your future privacy into consideration as well. Before you place that bid at auction, take a good look around the existing dwelling and its neighbours to ensure you will be able to achieve the level of privacy you and your family desire. Avoid having your windows looking directly into neighbouring properties, and even if it is not an issue currently, it could become one down the track if a new home is built next door.

Save money and stress with a knock down rebuild specialist

The team at ZAC Homes are knock down rebuild specialists and regardless of whether your block is sloped, narrow, above or below the road, our design team will work with you to create a contemporary design that fits your budget. ZAC Homes builds with trust, respect, integrity and pride, which we work hard to deliver to every client. Call us on 1300 350 793 or send us an online enquiry and our team will work with you to design and build your dream home.

Want more information?

Contact our team using the form or using the details below

Phone: 1300 350 793


Address: Unit 6, 119 Coreen Avenue, Penrith, 2750

Book an appointment online or visit us at our display homes at Box Hill and Marsden Park

We have just started our building journey with ZAC homes. We have chosen to build with ZAC homes as they have allowed flexibility with the design, resulting in a better usage of the living and bedroom spaces. Other companies had a rigid design which would have resulted in variation fees.


…ZAC Homes kept us regularly up to date with the progress of our home and the job was finished on time, which was very important to us. We are one hundred percent happy with our home and can thoroughly recommend ZAC Homes and their crew to anyone contemplating building a home.

Bilynda & Paul Robins

…Firstly I would like to thank the ZAC homes team for the experience that my wife and I have had when making the purchase of an investment property. The professionalism and dedication that was displayed, was by far the best that we have seen or experienced previously.

Bob F.

I can not speak more highly of this local building company. Right from the beginning they have been excellent to deal with…The finishes were very good and any work that I wanted fixed which was minor things was done


Very well managed with no hidden cost or surprises. Workmanship was excellent and very professional


Really pleased with the building process, communication and designs. Would definitely recommend.

Hannah Johnston

The customer service and assistance was superb with quick turn around times and patience with our queries. Everything from initial consultation, to colour selection to hand-over was organised easily and open communication was maintained throughout the process.

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