Buying Property in Daylesford: Hepburn Spa-Tourism Heritage Town, Section 173 B&B Layer, and the Section 32

Daylesford is the spa-tourism heritage capital of central Victoria — about 110 kilometres north-west of Melbourne in Hepburn Shire. The town is built around natural mineral springs (the largest concentration of such springs in Australia), and a substantial proportion of properties operate as B&Bs, day-spas, weekend accommodation, restaurants, or boutique retail under Section 173 Agreements. Heritage Overlay is dense across the town centre.

This guide covers the Section 32 and Contract of Sale issues specific to Daylesford (postcode 3460, Hepburn Shire).

Daylesford at a glance

• Council: Hepburn Shire (its own planning scheme).
• Postcode: 3460.
• Buyer profile: tree-changers, hospitality investors, weekend-home buyers, retirees, lifestyle downsizers.
• Dwelling mix:Federation/Edwardian cottages, larger heritage homes, rural-residential acreage on village fringe, B&B-converted heritage stock.
• Median house price (indicative):approximately $720k–$1.1M for established homes; commercial / B&B / heritage-significant properties priced separately.

The dominant risk: Section 173 Agreements on B&B / commercial properties

Many Daylesford properties operate as B&Bs, day-spas, cafes, restaurants, or boutique retail under Section 173 Agreements. If you're buying for residential use only:

• Check whether the property has a registered short-stay / accommodation use.
• Section 173 may obligate the property to remain in commercial use, requiring registration, or restricting residential conversion.
• Hepburn Shire has a short-stay registration framework — confirm status.
• Owners Corporation rules in any subdivided heritage building may regulate use.

Secondary risk: dense Heritage Overlay across the town

Vincent Street, Albert Street, and adjacent residential streets are densely Heritage Overlay. The HO regulates demolition, external alterations, painting, fencing, and even minor cosmetic changes.

See also our Kyneton guide for comparable spa/tourism heritage Section 173 patterns.

Tertiary risk: mineral spring + bore licensing

Some Daylesford properties have private mineral-spring bores or natural spring-fed water features. Bore registration and licensing rules apply, and the Section 32 should disclose any registered bore. Goulburn-Murray Water and DEECA hold bore records.

What to check in a Daylesford Section 32

1. Section 173 Agreements— particularly B&B, day-spa, commercial use.
2. Heritage Overlay + statement of significance.
3. Bore registration if mineral spring present.
4. Planning overlays: HO (very common), DDO, BMO (rural-residential fringe), VPO, ESO.
5. Owners Corporation if subdivided heritage building.

Independent checks to run before signing

1. Hepburn Shire planning property report.
2. Building inspection with heritage focus.
3. Specialist heritage consultant if planning alterations.
4. Bore licensing check if relevant.

An automated first-pass Section 32 review can flag Section 173 Agreements, HO, DDO, BMO, VPO, ESO, and Owners Corporation rules. Upload your Daylesford Contract of Sale to Pre Contract Review for a plain-English risk report.