It said population shifts from people moving out of major cities to regional areas would increase demand for real estate.

National property research group Propertyology said Orange, Byron Bay, Cessnock, Albury, Kiama, Ballina and Armidale were among 30 destinations across Australia that were "destined for working from home demand."

Head of research Simon Pressley said there had been a major shift in working arrangements, partly due to COVID-19 lockdowns.

"There is a shift now with people living in a location they truly love while bringing their job with them," he said.

"The work-from-home phenomenon is a structural change that will have a grip on Australian real estate.

"It will be one of the dominant forces to shape property markets for years to come.

"Millions of knowledge-based employees have already had plenty of practice at working from home due to pandemic restrictions."

Mr Pressley said pre-COVID-19 Byron Bay was the most popular location for working from home but it had become expensive.

He said venues offering bushwalking, village life, food and wine cultures and beaches would benefit most.

Mr Pressley said Orange was now a "regional star" with plenty to attract new residents.

He said Orange had a "highly-desirable foodie culture" an unemployment rate below the national average and a property market that had only dropped once in the past 20 years.

Government departments, including Department of Planning, Industry and Environment staff based in Orange's new building in Prince Street, will offer work flexibility.

A spokeswoman said staff could combine work at home and in the office.

"The [DPIE] has been an early adopter of agile working and flexible work agreements, which meant that we were well placed to support working from home when the pandemic first hit Australia," she said.

"Since late last year, the department has been supporting the return of the workforce to our offices and there has been a steady increase in numbers in our offices since then across the state.

"Our flexible work agreements will allow staff to combine working from home with days in the office."