Four ways to get a real workspace
- Convert an existing room - reconfigure a spare bedroom or formal lounge with proper power, data, lighting and a door. The cheapest and fastest.
- Internal extension or reconfiguration - carve out a study nook or small office from existing space, often alongside another renovation.
- Garden studio / detached home office - a standalone room in the backyard. Clear separation from family noise, and it can double as a guest or teen retreat.
- Small second dwelling - a fully self-contained studio that works as an office now and a granny flat or rental later. The most flexible long-term asset.
What a good home office actually needs
- A door that closes - for video calls and for switching off at the end of the day
- Proper acoustic treatment if it adjoins a living area or faces a busy street
- Hard-wired data or a strong mesh signal, and enough power points for a real setup
- North or east light for Melbourne winters, with blinds to control glare
- Heating and cooling that does not rely on the whole-house system running all day
- If detached: insulation and a 7-star-equivalent envelope so it is usable year-round
Real Melbourne numbers (2026)
General market observations as of mid-2026, not quotes.
Room conversion (power, data, lighting, built-in desk): $8k to $30k.
Prefab or built garden studio (uninsulated to fully lined, 9 to 15 sqm): $20k to $60k.
High-spec detached home office (insulated, bathroom-ready, 15 to 25 sqm): $55k to $120k.
Self-contained small second dwelling (office now, granny flat later): $160k to $320k.
Victorian rules to check first
- Small, non-habitable backyard studios can sometimes be built without a planning permit, but a building permit is usually still required - and the line between non-habitable studio and habitable dwelling matters.
- If the studio has a kitchenette, bathroom and sleeping space, it becomes a second dwelling and triggers the Victorian small second dwelling rules plus council siting and overlay controls.
- Overlays (heritage, bushfire, flooding) and setback rules can limit where a detached studio can go - check the planning scheme for your address.
- A properly permitted, insulated office adds more resale value than an unapproved shed conversion, and it will not cause problems at sale.