MELBOURNE, VIC — Melbourne home buyers planning a new build for 2027 will need to think about more than the floor plan and building price. Victoria is introducing new building electrification requirements that will change how new homes are designed, powered and equipped.

Truland Homes, a Melbourne home builder focused on fixed single-storey and double-storey home designs, says the change is another reason for buyers to understand what is included in a new home before choosing a design or signing a building contract.

From 1 January 2027, all new homes in Victoria will generally need to be built all-electric, subject to applicable exemptions. The Victorian Government says the change forms part of a broader move towards more energy-efficient homes and lower household energy costs.

What Changes for New Homes in 2027?

The new requirements mean new homes will no longer be planned around a gas connection in the way many older Victorian homes have been.

For a new home buyer, this can affect decisions around hot water, heating, cooking and other fixed appliances.

The change does not mean existing homeowners have to immediately remove their gas appliances. Separate rules from 1 March 2027 will require an existing residential gas hot-water system to be replaced with an electric alternative when it reaches the end of its life and cannot be repaired, subject to applicable exemptions.

For someone building a new home, however, the important point is to understand the requirements before finalising the design.

7-Star Energy Efficiency Is Already Part of New Home Building

The move to all-electric homes is not happening on its own.

Victoria's minimum energy-efficiency requirements for new homes increased to 7 stars under NatHERS, with a Whole-of-Home energy-use budget also introduced. The updated standards became mandatory in Victoria from 1 May 2024.

That makes the design of the home important.

Orientation, windows, glazing, insulation, heating, cooling and hot-water systems can all influence how efficiently a home performs.

For buyers comparing home designs, it is therefore worth asking how a proposed plan responds to the block, where the main living areas face and what energy-efficient systems are included.

Could an All-Electric Home Reduce Running Costs?

This is one of the more practical questions for homeowners.

Victorian Government modelling indicates that a new all-electric detached home can save around $990 a year compared with a new home using both electricity and gas. With solar, the potential saving increases to up to $1,920 a year. Actual results will vary depending on the home, appliances, solar generation, household energy use and electricity prices.

For a buyer, this means the advertised construction price is only one part of the longer-term cost of owning a new home.

The energy performance of the design and the efficiency of the appliances specified can also affect household expenses over time.

What Should Melbourne Buyers Ask Their Builder?

Before signing a contract, buyers should ask some straightforward questions:

What energy-efficiency requirements does the proposed design meet?
Which heating and cooling systems are included?
What type of hot-water system is specified?
Is solar included or optional?
What is included in the advertised building price?
Are site-specific costs identified?
Are the inclusions and exclusions clearly documented?
How are variations handled if the buyer requests a change?

These questions can make it easier to compare builders on the actual home being offered rather than simply comparing starting prices.

Why the Home Design Still Matters

The move towards all-electric homes also makes the relationship between the home design and the building process more important.

Some buyers want a fully customised home, while others prefer selecting an established plan with known dimensions, inclusions and pricing.

Truland Homes takes the latter approach, offering fixed home plans that buyers select from rather than customising a design from scratch. Its range includes single-storey and double-storey designs for Melbourne's south-east.

For buyers considering a knockdown rebuild, Truland Homes also manages the process from demolition and approvals through to construction and handover, using its fixed home designs.

The company currently services Melbourne and a number of south-east locations including Dandenong, Cranbourne, Pakenham, Clyde and Officer.

Planning a New Home for 2027

The all-electric requirements are another factor Melbourne buyers need to consider alongside their block, floor plan, budget and building contract.

It is also worth remembering that the regulations are about more than removing gas from a new home. The broader direction is towards homes that use energy more efficiently and are planned around modern electric technologies.

For buyers starting the building process now, understanding the requirements early can help avoid surprises later.

Truland Homes recommends that prospective homeowners compare designs, inclusions, costs and building contracts carefully before committing to a builder.

The most useful question for a buyer may be a simple one: What exactly am I getting for the price I'm being quoted, and will the home meet the requirements that apply when it is built?