Implementing circular economy in housing redevelopment project: a case study in Australia

Abstract The integration of circular economy (CE) principles into social housing construction projects has increasingly gained attention around the world. Despite this growing trend, the widespread adoption of these practices remains limited, typically confined to selected demonstration projects rather than being incorporated into mainstream practice. This study investigates the potential of CE strategies within a major housing redevelopment project to enhance resource circularity in the construction sector. Located in Melbourne, (State of Victoria), Australia, this case involves the planned demolition and reconstruction of 44 public housing towers, representing Victoria’s largest urban renewal project. Using an interpretive qualitative case study approach supported by s the PESTEL-CA framework, the study identified 39 barriers, 37 strategies, and 43 motivations influencing the implementation of CE principles in redevelopment demolition projects. Based on these findings, five stakeholder-oriented recommendations and guiding frameworks were developed to support the project management and reuse of demolition waste resources and improve the project’s environmental, social, and economic sustainability outcomes. These recommendations aim to guide policymakers and government agencies in effectively aligning project strategies with broader state and national sustainability goals. The findings not only contribute to academic discussions but also provide practical guidance for future large-scale redevelopment projects seeking to embed CE principles as a normative practice.