A house in Newtown has been evacuated after it was damaged when a neighbouring property, scheduled for demolition, partially collapsed on Tuesday afternoon.

Fire and Rescue NSW were called to inspect the partially collapsed building on the construction site on Pearl Street, Newtown at around 3:30pm on Tuesday.

The scene of the collapsed building in Newtown. Credit:Marise Watson

A second wall collapsed a short time later, causing structural damage to the front room and roof of a neighbouring occupied house.

Nobody was injured but the occupants were evacuated and would be unable return to the property on Tuesday night, a spokesperson for Fire and Rescue NSW said.