The work is being led by Cornwall Council in liaison with the Torpoint Town Project Board, whose members include Cornwall Councillors, town councillors, Antony Estate, business and voluntary sector representatives, also representatives from the Neighbourhood Plan steering group.
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The plans for the new development are currently being finalised, and will be subject to a public consultation before work begins on the new construction.
The demolition work is expected to last for around three months, but will not interfere with any ferry operations during this period.
Cllr Olly Monk, Cornwall Council portfolio holder for housing and planning said: "We are pleased to be working alongside Torpoint Town Council and other partners on a project that will revitalise the town centre through the creation of new homes, new commercial and community space, public realm and a better connectivity between the existing town centre and its water front.
"It is so important that we continue to identify these opportunities for projects that will truly benefit communities across Cornwall."
