ARSON destroyed a recently-renovated home in Robinson Street, Dandenong, on 12 July.
Witness spotted smoke and fire coming from the house, which had been vacant for four weeks and was for sale, and called the CFA about 11.40pm.
They extinguished the blaze but not before it had caused extensive structural damage.
Inspectors from the City of Greater Dandenong have condemned the building and it will be demolished.
Police and arson chemists processed the scene and deemed the fire’s cause to be suspicious.
Greater Dandenong CIU Acting Detective Sergeant Luke Kirton said there was evidence that squatters might have been living in the home.
He urged anyone with information to call Crime Stoppers on 1800 333 000.