Police said the 54-year-old victim found the burglar inside his property on Grimwade Crescent in Frankston late on Saturday afternoon.
The victim was threatened with a knife and tied up before being forced into his own car and driven away by the burglar, police said.
Security vision of the street seen by the ABC appears to show the victim arriving home in his car and walking to the front door of his house just after 5:30pm.
About two and a half hours later, the same car is driven away from the house.
Police saw the car being driven erratically and tried to pull it over but did not pursue it.
The car was found several hours after the burglary in the nearby suburb of Langwarrin, about a 14-minute drive from the victim’s house, where it had crashed into an embankment.
Both men were still in the car when police arrived. The victim was found in the passenger seat with his arms bound.
The men were taken to Frankston Hospital, where the victim remains with head injuries in a serious but stable condition.
The 40-year-old alleged offender, also from Frankston, is under police guard and suffered mainly cuts and abrasions.
The victim lives alone and neighbours said he keeps to himself.