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Top Suburbs in Melbourne for Knockdown Rebuilds & Dual Occupancy in 2025

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2025 Suburb Guide for Maximising Land Potential

In 2025, with land scarcity, rising house prices, and increasing demand for modern housing options, knockdown rebuilds and dual occupancy developments are becoming the smartest ways to maximise property value in Melbourne. But the key to success? Choosing the right suburb — and the right project partner. 

Whether you’re looking to build your dream home or unlock income potential, here’s a strategic guide to the top-performing suburbs and how to navigate the process with confidence. 

Why Knockdown Rebuild & Dual Occupancy?

These development strategies are ideal for homeowners and investors who want to: 

  • Maximise land value 
  • Avoid overpaying for new homes in saturated areas 
  • Generate rental income or create multi-generational living options 
  • Build a custom-designed home in a location they love 
  • Done well, they offer better ROI, design flexibility, and future-proof living. 

Common Pain Points for Homeowners & Investors

While the potential is high, the process comes with challenges — especially for first-timers. Common issues include: 

  • Council Restrictions & Zoning Confusion 
    Many properties look suitable on paper but face limitations from overlays, heritage controls, or tight setbacks. 
  • Overcapitalising 
    Without a strategy, it’s easy to invest more than you’ll get back — especially in areas with low resale appetite. 
  • Design + Compliance Gaps 
    Poor layout choices or non-compliant designs can lead to delays, redesign fees, or rejected applications. 
  • Contractor Coordination 
    Managing architects, town planners, surveyors, and trades separately leads to cost blowouts and scheduling chaos. 
  • Hidden Costs & Unclear Timelines 
    Many builders offer vague scopes, leaving you vulnerable to variation charges and timeline extensions. 

Best Melbourne Suburbs for Knockdown Rebuilds & Dual Occupancy in 2025

Whether you’re looking to unlock value in your backyard or build two homes where there’s one, location is everything. Here are the top-performing suburbs that combine favourable zoning, strong buyer demand, and development potential: 

  • Glen Waverley

A family-friendly suburb with strong school zones and growing demand for dual occupancy. NRZ and GRZ zoning pockets offer knockdown rebuild potential for investors looking to build and hold or sell. 

  • Reservoir 

Large block sizes and affordable entry points make Reservoir a hotspot for multi-unit developments. It’s a strategic suburb for subdivision and dual occupancy projects, particularly in the north. 

  • Bentleigh East 

A popular location for knockdown rebuilds due to gentrification, zoning flexibility, and premium resale value. Excellent transport and school access increase ROI for developers. 

  • Werribee 

Emerging as a western growth corridor favourite, Werribee offers development-friendly council processes and generous block sizes ideal for townhouses or dual occ. 

  • Heidelberg Heights 

Close to hospitals, universities, and transport, this suburb has rapidly risen in popularity. Perfect for savvy developers seeking duplex or triplex potential on mid-size lots. 

Why Radevo Living?

At Radevo, we don’t just build — we partner with you to deliver smart, stress-free property outcomes. Our end-to-end Knockdown Rebuild & Dual Occupancy Service is built for professionals and investors who want clarity, compliance, and confidence at every step. 

What Sets Us Apart:

  • Feasibility-First Approach 
    We assess zoning, overlays, site constraints, and ROI potential before you commit. 
  • Custom Designs, Smart Layouts 
    Every plan is tailored to the block, suburb, and your goals — whether it’s for sale, rent, or lifestyle.
  • Council Approvals Managed 
    We handle all planning, building permits, and documentation — no second-guessing required.
  • Fixed Pricing & Clear Timelines 
    No hidden surprises. No cost blowouts. 
  • One Team, Full Control 
    From site review to handover, you work with one accountable partner. No chasing tradies or consultants. 

Is Your Block Ready?

Before you invest time and money into your build, get expert clarity on: 

  • Is your block suitable for dual occupancy? 
  • What can be approved by council? 
  • What resale or rental yield can you expect? 
  • How long will it take, and what will it cost? 

 

We answer all these questions — and more — in your free site consultation. 

Ready to Unlock Your Block’s Full Potential?

At Radevo Living, we turn underperforming land into premium homes or high-return investments — without the hassle. Whether you’re ready to knockdown and rebuild, or explore dual occupancy options in Melbourne’s top suburbs, we’ll help you move forward with strategy and certainty. 

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Book a Free consultation

Bedroom Renovation
Guide

Everything you need to plan your perfect bedroom makeover.