PADDINGTON HOUSE RECORD SET WITH $12M SALE OF LANDMARK ‘GOVERNESS’ HOME
A restored 1860s Brisbane residence transformed by GRAYA has smashed Paddington’s house price record, selling for more than $12 million.
3 min
Queensland’s Paddington has a new benchmark.
The Brisbane suburb’s residential price record has been reset following the sale of ‘Governess’, a landmark 1860s-era home reimagined by local builder-developer GRAYA.
The five-bedroom residence at 49 Reading Street has transacted for more than $12 million, the highest price achieved in the tightly held inner-Brisbane suburb, underlining continued strength at the top end of the market.
GRAYA, led by brothers Rob and Andrew Gray, has built a reputation for delivering design-led homes and boutique residential projects, but ‘Governess’ represents one of its most ambitious undertakings to date, both in scale and execution.
The home was marketed by Ray White Collective’s Matt Lancashire and Josh Brown, who said the result reflects both the quality of the product and the depth of demand for premium homes in established suburbs.
“Governess is an absolute showstopper,” Lancashire said.
“It’s easily one of the most significant and meticulously transformed character homes ever to hit the Brisbane market, and the record result reflects exactly that.”
Brown said the sale reinforced a consistent trend emerging across Brisbane’s prestige market.
“To achieve a result like this in Paddington proves there is still an incredible appetite for ultra-premium, character-rich homes when they are executed flawlessly,” he said.
For much of the past year, the home has been a point of local intrigue. During its transformation, it drew regular attention from passersby along Reading Street, a reflection of both the scale of the site and the prominence of the build.
Set on a 1,634 sqm corner parcel, ‘Governess’ sits elevated above the surrounding streetscape, capturing sweeping city and ridgeline views. The position alone places it among a limited pool of homes capable of achieving outcomes at this level.
What distinguishes the project, however, is not just the site, but how the existing home has been reworked.
Rather than a conventional renovation, GRAYA has undertaken a full-scale reinterpretation of the original 1860s residence, retaining its heritage elements while introducing a contemporary extension that reshapes how the home is used.
The transition between old and new is anchored by a central spiral staircase, which acts as both a functional connection point and a defining architectural feature. It separates the more traditional elements of the home from the contemporary addition, creating a clear but cohesive distinction between the two.
Internally, the material palette has been carefully considered to reflect the surrounding environment. Green marble and walnut-toned cabinetry echo the leafy outlook, while large expanses of glazing bring in natural light and frame the elevated views.
Ceiling heights of 3.1 metres and floor-to-ceiling glass reinforce that sense of openness, allowing the home to operate across both indoor and outdoor zones. Living and dining areas extend to a wraparound deck overlooking landscaped lawns and a resort-style pool, positioning the home as much for entertaining as it is for day-to-day living.
The kitchen has been designed as a central hub, anchored by a 4.5-metre island beneath a skylight and supported by a concealed butler’s pantry. Outdoor entertaining is equally integrated, with an alfresco BBQ area connecting directly to the main living spaces.
Below, additional amenity spaces reflect the growing expectation for lifestyle-driven design at this level of the market. A gym and tasting room, complete with cellar, bar and lounge, sit behind thermally insulated glass, providing dedicated zones for both recreation and entertaining.
Accommodation is spread across five bedrooms, alongside a study and additional office space. The primary suite occupies the uppermost level, functioning as a self-contained retreat with its own lounge, private deck, dressing room and ensuite.
The inclusion of features such as an internal lift, home automation via Electronic Living, and a five-car garage reinforce the level of specification.
The sale highlights the continued evolution of Brisbane’s prestige housing market.
Suburbs like Paddington, long defined by their character housing and proximity to the CBD, are increasingly seeing a new layer of product emerge. Rather than incremental renovations, developers are delivering full-scale transformations that position heritage homes at the very top of the market.
The former Paddington record was set in early 2025 when a newly built home, ‘Mascotte’, on Garfield Drive, sold for $11.8 million.
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Byron Bay’s most compelling homes have always taken their cues from the climate. They open to the breeze, dissolve the boundary between inside and out and use tropical landscaping to create privacy without shutting out the natural world.
At 17 Kendall Street, those familiar coastal ideas have been elevated into something more architectural.
The five-bedroom residence is designed around a spectacular open-air courtyard, creating a private internal landscape where glass, stone, timber and water meet. Floor-to-ceiling glazing draws natural light into the interiors while framing the heated swimming pool and established tropical gardens from multiple points within the home.
The home was originally built in 2016, but underwent a major renovation last year following its $5.3 million sale in 2023. Sotheby’s Byron Bay agent Will Phillips has a $15 million price guide.
The transformation focused on both the home’s scale and its level of detail. Soaring voids and bold architectural forms create drama, but the material palette keeps the atmosphere warm. Rich timber, natural stone and handcrafted finishes temper the contemporary lines, allowing the residence to feel calm rather than imposing.
A sculptural spiral staircase forms the architectural centrepiece, connecting the home’s different spaces while providing a strong visual counterpoint to the horizontal lines of the courtyard and pool.
The planning is centred on connection. Multiple living and entertaining areas open to covered terraces, enabling the house to expand and contract according to the occasion. Smaller spaces support quiet family life, while the principal living zones and alfresco areas can accommodate considerably larger gatherings.
At the centre, the courtyard operates as more than an impressive arrival feature. It brings light and garden views deep into the plan, provides separation between the home’s different wings and creates a protected outdoor environment for year-round living.
Accommodation comprises five generously proportioned bedroom suites supported by five designer bathrooms. Their distribution through the residence gives family members and guests a greater sense of privacy, while the tropical outlook maintains a consistent connection between rooms.
Wellness Wing
The home’s most distinctive inclusion may be its dedicated wellness wing.
A private sauna, gym, Zen room and traditional Japanese soaking bath combine to create a retreat within the retreat. Rather than treating wellness as a single-purpose gym placed in a leftover room, the design gives it a dedicated sequence of spaces intended to support exercise, recovery and quiet.
The Japanese soaking bath is especially appropriate to the home’s broader architecture. Compact, deep and designed for immersion rather than conventional bathing, it complements the restraint of the Zen room and the calming views into the garden.
Outside, the heated pool and covered dining terraces provide the more social side of resort living. Tropical landscaping creates privacy around the residence, while the courtyard design allows greenery to remain visible throughout much of the interior.
Belongil Boom
The location adds another dimension to the property. Kendall Street sits near the Belongil side of Byron Bay, within walking distance of Belongil Beach and local dining including Belongil Bistro, Treehouse, Féu and the town centre’s broader collection of cafés, restaurants and boutiques.
That northern pocket is increasingly emerging as a prestige counterweight to Wategos and the tightly held Marine Parade strip at the opposite end of Byron Bay.
Much of the most visible investment has centred on nearby Border Street and the Belongil beachfront. Hospitality billionaire Justin Hemmes has assembled four residential holdings in the neighbourhood at a reported combined cost of about $45 million. His acquisitions include a beachfront holding bought for $16 million in 2023 and a subsequent creek-front purchase.
The Block judge and interior designer Darren Palmer and his husband, Olivier Duvillard, have also moved into the precinct, paying $4.2 million for an original home with creek views.
Luxury developer and builder GRAYA has made an even larger commitment. The Brisbane group acquired a substantial Border Street beachfront site for about $20.65 million in 2024, with plans for a major trophy-home project. Part of that holding was subsequently sold in a transaction that underlined how dramatically land values have moved.
The strongest evidence came from Chemist Warehouse director Damien Gance and his wife, Sasha Robertson. The couple paid $33.5 million in cash for the beachfront residence Malia, setting a Byron Bay house-price record and surpassing the $30 million sale of Watermark at Wategos in 2023. They then reportedly spent another $20 million securing the neighbouring vacant parcel, taking their combined Belongil investment to $53.5 million.
Those transactions do not make Kendall Street directly comparable with absolute beachfront property. They do, however, illustrate the growing weight of capital and attention shifting towards Byron Bay’s northern edge.
For decades, Marine Parade at Wategos has been the region’s clearest shorthand for trophy property. Border Street and the wider Belongil precinct are now building a comparable identity, supported by larger holdings, beachfront scarcity and an expanding concentration of prominent owners.
Property details
- Address: 17 Kendall Street, Byron Bay, NSW
- Location: Near Belongil Beach and Byron Bay town centre
- Original construction: 2016
- Last sale: $5.3 million in 2023
- Renovation: Major renovation completed in 2025
- Current price guide: $15 million
- Bedrooms: Five
- Bathrooms: Five
- Key features: Central open-air courtyard, heated swimming pool, tropical landscaping and multiple indoor-outdoor living areas
- Wellness facilities: Sauna, Zen room, gym and traditional Japanese soaking bath
- Nearby: Belongil Beach, Belongil Bistro, Féu and Treehouse
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