A new law could add $100,000 to your home's value - here's how

Victorians are on the cusp of becoming the first in Australia to secure a legal entitlement to work from home, with Premier Jacinta Allan planning legislation that guarantees at least two days of remote work per week for eligible employees.

While intended to boost inclusion and reduce commuting, some property analysts say the law could suddenly transform home offices from 'nice to have' to 'must have' for property buyers.

According to Cotality (formerly CoreLogic), Melbourne's median house price was around $940,000 in May 2025, having edged upward by 0.5 percent that month and 1.2 percent over the quarter, although still about 1.0 to 1.2 per cent below its March 2022 peak.

With tighter listings and heightened buyer demand, lower value homes showed the strongest movement in recent months.

While Cotality does not publish a specific breakout by home office feature, view.com.au analysis drawing on industry research suggests that homes with dedicated office spaces tend to attract an 8-10 percent resale premium compared to similar properties without.

In Melbourne suburbs where median prices sit between $900,000 and $1 million, this translates into an extra $72,000 to $100,000 in value.

"Across Melbourne, we consistently see that a well designed study can add around 10 per cent to a property's sale price," says David Sciola from Jellis Craig Stonnington.

"In suburbs where median prices are higher, that extra 10 per cent translates into a significant uplift for what is often a relatively small space."

However Katie Smith Director of Williams Real Estate - Williamstown and Newport doesn't see a spike in home prices happening because of the new work from home legislation.

"I don't think things will change for property values, because working from home really became a bit of a norm during COVID.

"We saw a rise in people converting garages, spare rooms and even corners of a room into study spaces or home offices. I don't think they've converted them back, so it's just a 'given' there will be a study space in most Melbourne homes."

Tim Lawless, Head of Research at Cotality agrees.

"It's fair to say remote working is a lot more popular now than it was pre-2020."

"Demand for functional and separate working spaces within a home is likely to remain strong, even without work from home laws being enshrined in Victoria."

"Beyond the premium for a home office, anecdotally, buyers are also going to be seeking out areas with fast and reliable internet speeds as well."

Higher end properties featuring garden offices or separate pods may command uplifts of up to 30 percent in buyer perception and pricing.

Smith disagrees and feels that the additional pods can sometimes be a deterring factor.

"They normally cost around $20K to drop into a backyard but I've had buyers turned off because it takes up space where there could have been a trampoline or even a pool."

In Prahran, where according to view.com.au the median price for a two bedroom home sits at $1,214,000, a recent listing at 36 Alfred St with a self contained study is guiding between $1.35 million and $1.45 million.

That places it roughly 11 to 19 per cent above the suburb's median, equating to an additional $136,000 to $236,000 in value.

Sciola believes the premium reflects the growing appeal of dedicated work from home spaces, with the property's built in desk, and modern fittings offers buyers an immediate, ready to use office.

He adds: "Buyers love the flexibility, they can keep it as a dedicated home office or easily convert it into a third bedroom or nursery."

"If you're talking about single fronted period homes, the small two bedrooms have less demand than a 3 bedroom.

"As soon as you have a 2 bedroom with work from home office, or even a study nook - you immediately jump into the next price range."

Similarly sized and located, 51 Henry Street, Prahran lacks a formal workspace and has a sale guide price of $1,100,000 - $1,200,000 closer to median value of the area, potentially reflecting reduced appeal to hybrid professionals.

Lawless added: "Additional amenity will almost always add value to a home, be it an outdoor entertaining area, media room, rumpus or home office."

"Markets that offer up a blend of commutability for hybrid works and liveability are likely to be in the sweet spot for housing demand, however these areas have already seen a surge in values since the onset of the pandemic and rise in popularity of remote working. "

With Cotality showing renewed value growth in Melbourne and tightening supply levels, the combination of legislative change and evolving buyer preferences could make the humble home office continue to be another premium driver in markets moving forward.