The Sydney property facing its past in style

It’s one of the hottest looks right now, but Art Deco properties as beautiful as this are in short supply.

The residence at 19-21 Ellsmore Avenue in leafy Killara on Sydney’s north shore sits on a 1,517sqm block surrounded by carefully maintained parterre gardens and generous lawns.

Ideal for larger families, there are five bedrooms on offer, including four on street level and a fifth bedroom that could serve as a guest room or in-law accommodation on the lower floor.

With a generous, light-filled entry foyer and multiple living spaces, this is the perfect home for entertaining, whether it’s a casual get together with family or a more formal event.

The back of the house faces north east, with a formal pool the full length of the northern side of the property. There’s also an outdoor kitchen for alfresco dining.

Those accustomed to working from home will also appreciate the spacious home office with views to the garden.

However, while the floorplan ticks all the boxes in terms of practicalities, it’s the original Art Deco features that really set this property apart. Thoughtfully renovated to combine the best of old and new, the full-brick residence has retained, restored and gently updated features such as the curved lines, leadlight glass, coffered ceilings and marble fireplaces.

A state–of-the-art kitchen, floor-to-ceiling curtains, period architraves and a neutral palette recall the glamour of the period, ideally suited to 21st century living.

Located a stone’s throw from Killara Golf Club and within walking distance of schools, Lindfield Station and Harris Farm market, this is one property to keep on the radar.

Address: 19-21 Ellsmore Avenue, Killara

For sale

Open for inspection: 2pm Saturday, February 18

Agent: Jason Roach – 0448 455 556 The Agency, theagency.com.au

Australia’s retail property sector entered 2026 as the strongest performing commercial asset class, but rising geopolitical risks and cost pressures are beginning to test its resilience, according to new research from Knight Frank.

The latest Australian Retail Review shows the sector rode a wave of consumer spending and constrained supply through 2025, delivering total returns of 9.2 per cent and driving transaction volumes up 43 per cent year-on-year to $14.4 billion.

That momentum carried into early 2026, with around $3.6 billion in deals recorded in the first quarter alone.

“Retail clearly emerged as the standout commercial property performer in 2025,” said Knight Frank Senior Economist, Research & Consulting Alistair Read.

“Improving household spending, limited new supply and stronger leasing fundamentals combined to drive better income growth and renewed investor confidence in the sector.”

Spending rebound drives retail strength

A lift in household spending has been central to the sector’s performance. Consumer spending rose 4.6 per cent year-on-year to February 2026, supported by easing inflation and improving real incomes.

That shift flowed directly into retailer performance, with average EBIT margins across major retailers rising to 8.9 per cent in the first half of 2026, their strongest level in several years.

“Stronger consumer spending was critical in restoring momentum to the retail sector,” Mr Read said.

“Retailers have generally been better able to absorb costs, rebuild margins and support sustainable rental outcomes, particularly in higher-quality centres.”

Improved trading conditions also pushed leasing spreads up 4.2 per cent in 2025, reinforcing income growth and supporting capital values.

Geopolitical tensions begin to bite

But the outlook has become more complicated. The report warns that escalating conflict in the Middle East and its impact on fuel prices, supply chains and interest rates could weigh heavily on consumer spending.

“Higher fuel prices, flow-on cost pressures across supply chains, and recent interest rate increases are collectively squeezing household budgets, and early consumer sentiment data suggests confidence is already softening,” Mr Read said.

“While household balance sheets remain generally resilient, heightened uncertainty over future costs is likely to weigh on spending — particularly in discretionary categories — in the months ahead.”

The impact is already being felt in investment activity. While the year began strongly, transaction volumes slowed in March as investors paused amid the uncertainty.

“Early indicators suggest elevated uncertainty has already begun to affect the market. While retail investment enjoyed its strongest start to a year in a decade, with nearly $3 billion transacted by the end of February, activity stalled in March, as investors took a pause amid elevated uncertainty,” Mr Read said.

Solid foundations support medium-term outlook

Despite the near-term headwinds, Knight Frank maintains that the sector’s underlying fundamentals remain strong. Limited new supply, high construction costs and population growth are expected to continue supporting rental growth over the medium term.

“Retail has entered this period of uncertainty from a position of strength,” Mr Read said.

“Supply-side constraints, population growth and improving income fundamentals remain powerful structural supports for the sector.”

The report highlights several trends shaping the year ahead, including steady yields as interest rates rise, mounting pressure on tenant margins, continued outperformance of prime centres, the growing need for logistics integration, and risks linked to underinvestment in capital expenditure.

For now, retail remains a sector with momentum, but one increasingly at the mercy of forces far beyond the shopping centre.

The Sydney property facing its past in style

This renovation of this estate-style Art Deco property is a masterclass of old meets new

Strong consumer spending and tight supply have driven retail to the top of commercial property, but signs of pressure are starting to emerge.