<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The number of office buildings sitting empty in </span><a href="https://www.9news.com.au/melbourne" rel="" target="_blank" title="Melbourne"><span>Melbourne</span></a><span> has surged to a 30-year high ahead of </span><a href="https://www.9news.com.au/national/victorian-government-to-enshrine-the-right-to-work-from-home-in-law/d12d1aed-6a69-4547-96b2-dd09112e08ae" rel="" target="_blank" title="Victoria's looming work-from-home legislation"><span>Victoria's looming work-from-home legislation</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Office vacancy in the city jumped to 19.1 per cent in January this year, up from 17.9 per cent in July 2025 – the worst occupancy rate in Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It also marks the highest rate of unused office buildings in Melbourne since 1997 and is a "concerning" milestone, the Property Council of Australia has warned.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/tax-relief-for-beer-lovers-but-spirits-drinkers-call-for-reform-of-broken-system/b582f1b3-3bca-4d84-924b-09aaf5f63023" target="_blank"><strong><span>Tax relief for beer lovers but Nationals call for reform of 'broken' system</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The property sector in Melbourne has been battling harsh economic headwinds and a succession of new and increased taxes for years," Property Council Victorian executive director Cath Evans said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Combine this with the uncertainty about the Victorian government's unprecedented and looming intervention to mandate the right to work from home, and it means too many investors are saying no to Melbourne."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The addition of 100,000sqm of new office space in the city has driven this increase.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/office-vacancy-rates-in-melbourne-surge-to-highest-rate-since-1997/857ca46b-d7f0-4a29-a3ff-ffaffbdee511" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite the historic rise in vacancy rates, Evans said there was a projection of "long-term faith" in prime office space in the CBD.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Overall, Melbourne remains an attractive destination for employers, and the increase in supply presents a real opportunity for tenants who are able to capitalise on renewed interest in the market," she added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/xi-jinping-and-vladimir-putin-closer-ties/824484ee-4654-4ba0-818d-4833b0614729" target="_blank"><strong><span>'Global turbulence' pushing China and Russia closer</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Nationally, vacancy rates rose to 15.9 per cent, up from 15.2 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/australia-work-from-home-office-vacancy-rates/9de14011-76c4-486f-a178-4aafa6096cea" rel="" target="_blank" title="Last year, the national vacancy rate hit its highest rate since 1995,"><span>Last year, the national vacancy rate hit its highest rate since 1995,</span></a><span> when the country was still recovering from the property market crash of the 1990s.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Pending legislation will allow millions of Victorians to work from home for at least two days a week.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Premier Jacinta Allan said she would introduce legislation in 2026 to allow both public and private sector workers who can reasonably do their job at home to be legally allowed to do so.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Business Council of Australia </span><a href="https://www.9news.com.au/national/business-council-of-australia-warns-proposed-workfromhome-law-will-risk-jobs/c4ae8477-ccb7-44e6-baaa-c4dcdd6234f9" rel="" target="_blank" title="previously warned the plan would risk jobs and stifle investment in the state."><span>previously warned the plan would risk jobs and stifle investment in the state.</span></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The proposal for a one-size-fits-all mandate will drive investment and jobs away from the state at a time they're needed most," chief executive Bran Black said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" 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