The rise of remote and hybrid work has fundamentally reshaped the Australian property market. The ripple effects are still being felt from the city centre to the furthest reaches of regional Australia.
If you’re wondering why your local café in Ballarat is suddenly packed with MacBooks and why three bedroom homes in the suburbs are hotter than inner city studios, remote work is the answer.
THE GREAT SHIFT
From city lights to lifestyle living
Before the pandemic, proximity to the CBD was king. Australians paid a premium to live close to work, often enduring tiny apartments for the privilege of shorter commutes.
But with the rapid adoption of remote work – now a regular reality for around 36% of employed Australians – the rules have changed.
Suddenly, the daily commute is optional and the dream of a home office with a view of gum trees (and maybe a chook or two) is within reach.
This shift has driven a surge in demand for:
- Larger homes with extra bedrooms or studies
- Properties with dedicated office spaces or flexible layouts
- Reliable high speed internet
- Outdoor areas and pet friendly amenities
Suburbs and regional towns that were once overlooked are now in the spotlight.
In Melbourne’s west, for example, suburbs such as Sunshine, Footscray and Altona North have seen increased demand for spacious homes as buyers and renters prioritise lifestyle and value over being close to the city.
Regional centres such as Ballarat, Geelong and the NSW South Coast have also experienced price growth as city dwellers make the tree or sea change.
WINNERS AND LOSERS
Regional boom, city slowdown
The biggest winners? Regional areas and outer suburbs.
Freed from the tyranny of the daily commute, buyers have flocked to places offering more space, better affordability and a slower pace of life.
This has led to:
- Strong price growth in regional markets and lifestyle suburbs
- Increased competition for family homes with home office potential
- A new premium on properties with flexible, work friendly spaces
On the flip side, inner-city apartments, once the darlings of investors and young professionals, have lost some of their shine.
Demand for small CBD units has softened and rental yields in some city centres have dipped as tenants seek more space elsewhere.
COMMERCIAL REAL ESTATE
The office exodus
It’s not just residential markets feeling the impact. Commercial property, especially office space, has taken a hit.
Many businesses have downsized their office footprints or shifted to hybrid models, leading to a decline in demand for large, centralised office spaces.
In response, some suburban and regional areas are seeing the rise of local co-working spaces catering to remote workers who want a professional environment without the commute.
Will the trend last?
While there’s been talk of a ‘return to the office’, most experts believe remote and hybrid work are here to stay, at least in some form.
Even as some employers push for more days in the office, the lifestyle and affordability benefits of regional and suburban living remain a strong draw.
For many, the move wasn’t just about work flexibility – it was about a better quality of life and that’s not something people give up lightly.
What does this mean for buyers and investors?
- Properties with home office space, good internet and flexible layouts are in high demand.
- Regional and lifestyle markets are likely to remain popular, especially if affordability in the capitals remains out of reach.
- Investors should look for features that appeal to remote workers – think extra bedrooms, garden studios or proximity to co-working hubs.
- Commercial property investors may need to rethink office investments and consider suburban or regional coworking opportunities.
Remote work has rewritten the rules of Australian real estate
Whether you’re buying, selling or investing, understanding these new priorities is key to making smart moves in a market that’s still finding its balance.
If you’re ready to trade the city grind for a bit more space and a lot more lifestyle, now’s the time to make your move.