Mandated Labor office escape rule reshapes local Victorian home searches

3 weeks ago 21

Premier Jacinta Allan’s proposed work-from-home rules could give eligible Victorians a legal right to work remotely two days a week, reshaping where buyers can afford to live.

The Allan government’s proposed work-from-home laws have been tipped to supercharge a Melbourne exodus that could save families close to $1m — but hurt the health of the city.

Market experts are already recording demand from families considering a jump to lifestyle hubs around the state, and further out from the city and believe plans to ratify two days a week working from home will give that demand a signficant lift.

The Victorian government has introduced legislation that would give eligible full-time workers who can reasonably do their job from home the right to work remotely for up to two days a week.
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Part-time and regular casual workers would also be covered on a pro-rata basis.

If passed, the laws would start on September 1, 2026, while workplaces with fewer than 15 employees would have until July 1, 2027, to comply.
Marsden Buyers Agents director Dion Marsden said a guaranteed two days working from home “absolutely could” change how buyers thought about where they could live.

With inner-Melbourne median house prices at $1.52m according to latest PropTrack data, going further afield could save families $960,000 on their purchase cost — not including stamp duty.

Mr Marsden said his own parents had moved to Trentham, near Daylesford, where many of their neighbours still worked in Melbourne but no longer needed to commute every day.

“What they are doing is spending Monday and Friday at home, then coming into the city on the Tuesday and Wednesday,” Mr Marsden said.

“They’ll catch the V/Line into town, which for a lot of those locations is around an hour to an hour and a half, and then they get to spend the rest of the week living in a place they really enjoy.

“So yes, I do think a guaranteed two days working from home can shift buyer thinking.”

Marsden Buyers Agents director Dion Marsden said guaranteed two-day work-from-home arrangements could push buyers to rethink the commute and chase more space in lifestyle areas.

If it does, it could spark the second major exodus from the city inside a decade, with the Covid pandemic and former Victorian Premier Daniel Andrews’ lockdown orders driving large numbers of Melburnians to relocate to regional towns and even interstate.

New Muval “buzzing cities” data shows Australia’s lifestyle race is not limited to capital-city centres.

Sydney City and Inner South topped the national ranking, while Melbourne – Inner was Victoria’s best performer and ranked second in Australia.

But regional Victoria also starred, with the Hume region, Warrnambool and South West, Bendigo, Latrobe – Gippsland and Ballarat all ranking inside the national top 25.

The index looked at factors including eating out, night-life, events, culture, outdoor recreation and fitness.

PropTrack Market Trends Regions data shows the same lifestyle areas can come with far cheaper entry points than inner Melbourne.

Inner Melbourne’s median house price is $1.52m, compared with $630,000 in the Hume region, a difference of $890,000.

Warrnambool and South West has a $560,000 median house price, a saving of $960,000 compared with inner Melbourne.

Ballarat’s median house price is $594,750, Bendigo’s is $650,000 and Latrobe – Gippsland’s is $583,000.

Unit buyers can also get into those areas for far less, with typical prices of $410,000 in the Hume region, $423,500 in Warrnambool and South West, $482,000 in Bendigo, $395,000 in Latrobe – Gippsland and $415,000 in Ballarat.

Middle-ring Melbourne suburbs with train access, cafes and proper home office space are tipped to be among the winners from the work-from-home shift.

Mr Marsden said Covid-19 had already shown how quickly hybrid work could drive people toward regional and lifestyle markets, including the Mornington Peninsula.

But he said many eastern suburbs buyers were also moving further out for better value, larger homes, schools, open space and a more relaxed family lifestyle.

“A lot of buyers in the east have previously been closer to the city and are shifting further out for affordability,” he said.

“They want more house for their money.”

Mr Marsden said a separate or attached dwelling, such as a bungalow, had become increasingly attractive to work-from-home buyers.

He said buyers were also looking for studies near the front of the home, cafes, parkland, shops and walkability to a train station.

“The same buyers who want to work from home more often usually still want to be able to walk to the train station when they do need to commute,” he said.

Muval chief executive James Morrell. Muval’s buzzing cities index ranked Melbourne – Inner second nationally, while several regional Victorian areas also made the top 25.

PropTrack Market Trends Regions data shows homes in some top-ranked Victorian lifestyle areas can cost up to $960,000 less than inner Melbourne’s $1.52m median. Picture: Jason Edwards

Muval chief executive James Morrell said the results showed affordability and location were increasingly being weighed against convenience and lifestyle access, with some regional areas proving buyers did not need to live in a capital-city centre to be close to cafes, events and outdoor recreation.
Ni Advocacy director Kevin Ni said work-from-home laws would influence buyers, but the bigger issue was whether the property itself could support remote work.

“The bigger priority would be the property itself, and whether that home is actually equipped for a working-from-home arrangement,” Mr Ni said.

“People still care about where they live, of course, but if they are working from home two days a week, they need a home that supports that lifestyle.”

Ni Advocacy director Kevin Ni said buyers still wanted train-line access and homes properly set up for remote work, not just cheaper regional locations.

Mr Ni said most CBD professionals and first-home buyers still wanted to remain within 30-40 minutes of the city, particularly along Melbourne’s eastern and southeastern train lines.

He said regional areas such as Bendigo, Ballarat and Gippsland were appealing lifestyle markets, but many buyers there were likely to work locally rather than commute regularly to Melbourne.

“When it comes to regional areas, if you are living two hours away from Melbourne’s CBD, it is very likely your job has nothing to do with Melbourne’s CBD,” Mr Ni said.

“If you live in Bendigo, nine times out of 10 you probably work in Bendigo as well.”

Portrait of a content, smiling young woman

A proper study, fourth bedroom or backyard bungalow has become a key buyer wishlist item as hybrid work reshapes how Victorians choose homes.

Mr Ni said work from home had turned lifestyle into a bigger property factor, with buyers wanting the same convenience in the suburbs they would usually get in the CBD.

“That means proximity to great cafes, retail shops, friends and family, and most importantly, the train line,” he said.

He said established older-style boutique units in lifestyle suburbs could benefit as buyers chased affordability and convenience.

“Melbourne’s unit and apartment market is significantly undervalued,” Mr Ni said.

“But I am not talking about off-the-plan product or high-rise buildings. I am talking about established, older-style boutique units.”