The former Catholic church priory in Tarbert St, Alexandra, which has stood on the site since the early 1920s, was demolished last Thursday.
Central Excavations Ltd removed the doors, fittings, beams, red bricks and other materials and fixtures that could be recycled. A digger then took three hours to demolish the building.
The site is owned by Wiltons Ltd. Company spokesman Nigel Hinton, of Alexandra, said it intended to build four townhouses on the site, subject to council permission.
If it receives permission, it hopes to start building in six to eight weeks.
Fr Tony Harrison, of Invercargill, said he lived in the house for 18 months before it was sold in 1986 to become a private residence.