Luxury and refinement at the country estate with everything

The term estate tends to get overused in real estate circles these days – but not in this case.

Set among 12.1ha of park-like grounds, this gracious home at 1620 Kangaloon Road, Kangaloon in the Southern Highlands has everything country living is known for, all within easy reach of Sydney.

The main residence is a single level, architect-designed home with seven bedrooms and four bathrooms spread across the floorplan. Entry is via a tree-lined walkway leading to a spacious reception area.  A north-facing open plan living area leads to multiple spaces for dining, entertaining or just relaxing to take in the view of the lake from the veranda.

The kitchen, including a 3m long Italiana stone island benchtop, is ideal for servicing small groups or a crowd, with a butler’s pantry and ample storage.

Thermal comfort is maintained year round, thanks to heated floors, reverse cycle aircon and fireplaces, ideal for creating a little atmosphere on cold winter evenings.

Beyond the main house, a self-contained cottage with two bedrooms on the upper floor is ideal for guests.

But this is just the start of what is on offer at this address, which includes seven fenced paddocks and a competition-sized equestrian arena, as well as orange, mandarin and lime orchards and espaliered lemon trees.

Positioned 16km south of Bowral, it is just 6km from the historic village of Robertson.

 

Address: 1620 Kangaloon Road, Kangaloon

Auction: 11am March 12

Open for inspection: Saturday March 4, 2.30pm-3.30pm

Price guide: $13 million

Agent: Ben Olofsen, The Agency 0419 019 423 theagency.com.au 

Their Offer Was Accepted. The Only Problem—the House Wasn’t for Sale.

Q: Have you ever found yourself in a real-estate deal with a stone-cold criminal?

Katin Reinhardt, real-estate agent, The Oppenheim Group, Orange County, Calif.

My client was looking for a house in Floral Park. We struck out on a couple, and then one pops up on the market. He sends me the listing and says, “I absolutely love this house.” It’s big, it’s got a pool—everything he wanted. It needs some work, but for $2 million it was pretty darn good.

I contact the agent, from a reputable company, and he says there are no open houses for the weekend. My buyer wants to put in an offer on the house so no one takes it, contingent on inspection, and the agent is like, “Fine. You guys come here, we’ll do the inspection on Monday.”

We drew up an offer and they accepted in four hours. It was an all-cash offer, with a 10-day contingency. I kind of knew something was weird when I got a text from the listing agent saying, “Hey, would you mind wiring the money directly to my seller’s account?”

It was a $2 million house; the deposit on it was about $70,000. I say, “Absolutely not—let’s all get on the phone.”

The seller sounds absolutely normal, like, “Hey, I’ve been burned before when someone has backed out.” We said it had to be a verified escrow account, and the seller says, “OK, that’s fine, I don’t mind.”

On Monday, we get to the house for the 5 p.m. inspection, knock on the door, and some guy comes out in his underwear. No shoes on. I’m like, “Hello, sir, we’re here to do the inspection.”

And he says, “What are you talking about?”

I said, “Didn’t your agent inform you? We’re in escrow with you guys.”

I pull out the contract—it had his name and everything—and he was like, “What in the actual hell? You guys gotta leave. I’ve never listed the house. I just bought it two years ago, and I’m not planning on selling.”

We called the agent, like “What’s the deal, bro? Did you ever go inside the property and verify the seller?”

So what happened was, the scam guy called the broker’s assistant and said, “I’ve worked with you guys before. I’m out of town. I need to sell my house. Let’s put a listing together.”

The agent’s only contact with him had been via email and one or two phone calls. The guy sent pictures from the last time the house was listed, doctored to look brand-new. The agent calls the seller—this scam artist—and can’t get hold of him. No communication. My guy was ready to wire $70,000 to this escrow. Thank God he didn’t.

I had to do a full police report. I went over to the house and apologised. I said, “We had no clue, and my client absolutely loved your place, yada, yada. I know you’re not trying to sell your house but If you ever want to, we got somebody here that would pay cash for it.”

Scott McManaway, broker, The Agency, Denver

I got a call, this couple wanted to sell their house. I went over there and met with the husband; the wife was out of town. We toured the house, had some good conversations and he said, “OK, you’re the guy for the job, let’s do it.”

One of his caveats was, no sign in the yard. He was like, “My neighbors hate me and I hate my neighbors. I don’t want them to know my business.”

We get it on the market, get the ball rolling, get it under contract fairly quickly. The buyers are going through inspections, when the title company calls me and says, “Scott, we have a problem—there’s a bond lien on the property.”

I call my client, and he goes, “Oh [expletive], they put a bond on the house.” And then, as simple as you and I are talking now, he goes, “I’m out on bond for murder. I didn’t realize they put that on my house.”

It turns out he had killed a guy in the house. Later, I googled the address of the property, and it had been all over the news. I tried to keep my composure. I said, “All right, we can get through this. We’ve got to figure out what the bond is worth. Do we have court dates we have to worry about?”

Then, unbeknown to me, he takes a plea deal and gets locked up right away. It turns out his wife, who was somehow involved in this, had fled the state. She got arrested and was brought back to Colorado. So both of my clients—the husband and the wife—end up in jail at the same time during our transaction.

They got shifted around to different correctional facilities. There was delay after delay. I finally had to let the buyers know what was going on, like, “Crazy scenario! Both my clients are in jail, but I promise we are going to get this closed.”

Two different jails, two completely different processes. I called in some favours from attorneys. I’m able to get the wife’s side of the paperwork signed, but I had to wait till the husband got to his final spot, if you will. I brought a mobile notary with me to the prison. We did the whole walk-into-prison, empty-your-pockets, walk-through-the-X-ray-machine.

We go into the visitation room and two minutes later, this big metal door buzzes open and in comes my client, big smile on his face. He says, “Hey Scott! You got it done!” Comes over, gives me a big bear hug. We signed the closing docs and he stood up and hugged me
again and said, “When I get out of prison, I’m going to reach out to you. I want to do real estate.”

—Edited from interviews

Gucci Launches Sustainability Drive as European Fashion Regulation Looms

Italian luxury brand Gucci is set to launch a hub in Tuscany promoting more durable and less wasteful fashion, as it joins efforts by the sector to meet comingEuropean regulations requiring companies to limit their impact on the environment.

The so-called circular hub will be a research-and-development centre to study ways to improve circularity, including through better durability and recyclability of products, as well as minimising waste and pollution from production to end of life. It will boost transformation in the Italian fashion industry’s production models, said Gucci in a joint release with French parent Kering.

Kering said the hub should promote the use of fewer natural resources and reduce greenhouse-gas emissions. While it didn’t detail how much it expects the hub to benefit the environment, the company did say it would cut the emissions from managing waste generated by Gucci’s leather-goods production by up to 60%.

Kering expects the hub to act as a forerunner for new models that it anticipates will be made obligatory by European regulations in the coming years. Last year, the European Union set out a plan to reduce the environmental damage of the apparel industry, which contributes as much as 8% of total greenhouse-gas emissions, according to United Nations estimates.

All makers of clothes and accessories would be subject to the new measures, even if the higher quality of luxury products and the brands’ typically more local and integrated supply chains tend to make them less environmentally damaging than the products manufactured by fast-fashion companies.

Clothing should be “long-lived and recyclable, and to a great extent made of recycled fibres,” the EU said in its proposed plan. It said labelling should make it easier for consumers to gauge the impact of what they buy.

Legislation in the EU will be formulated to enforce the new measures over the coming years, but some countries are moving ahead on their own. France has introduced a law obliging clothing producers and retailers in France to make clear to consumers the environmental impact of their products, including the amount of recycled material, the use of renewable energy in their production and their recyclability. The regulation applies to larger companies that had annual revenue above €50 million, equivalent to roughly $53 million, as of the beginning of this year and will be applied to smaller players from next year.

Companies are also working to comply with potential supply-chain regulations that could require larger firms operating in the EU to identify, prevent and remedy risks to human rights and the environment in their supply chains, such as minimum age requirements, worker safety, pollution and biodiversity loss.

Some fashion and consumer-goods companies have turned to new technology to help gather data on their supply chains and track material, though transparency remains tough to achieve in many cases. But luxury-goods companies such as Kering have an advantage over brands that sell to more general consumers, analysts at financial services company Jefferies said in a research note this week.

“Luxury brands generally have strong and transparent supply chains and an opportunity to better communicate sourcing quality,” they said.

On the other hand, high-end brands also come under more scrutiny, said Luca Solca, a luxury-goods analyst at brokerage Bernstein.

“Luxury brands have the burden to stand for our better selves, as they embody people’s aspirations and ideals,” Mr. Solca said. “In this respect it is on them to stand up to scrutiny when it comes to respecting the environment and society.”

Waste is a particularly tricky proposition for luxury brands, which have traditionally incinerated unsold stock to avoid discounting their products or diluting their brand image. The EU’s plan envisages requiring retailers to disclose how they deal with unsold textiles and even contemplates a possible ban on destroying unsold or returned clothes.

That would pose a problem for brands that don’t recycle or resell much of their leftover stock. In 2018, U.K. luxury fashion house Burberry said it would stop burning unsold inventory amid pressure from environmental groups, but some peers continue the practice.

“Product destruction can cause consumer backlash if reported in the press, [while] off-price sales are detrimental to brand equity,” Jefferies said. “Thus recycling is the preferable option, yet is an additional cost.”

However, some companies are starting to see the durable nature of luxury products as a life-cycle management opportunity. Kering-owned fashion house Bottega Veneta recently introduced a lifetime warranty on its handbags and the wider industry is increasingly open to allowing resale via secondhand luxury platforms.

Gucci’s circularity hub in Tuscany will involve all Kering facilities in the region, including Gucci’s production sites, raw materials suppliers and finished product producers. The hub’s activities will later be extended to Kering’s other brands, before opening to the wider fashion sector.

“The fashion industry needs to accelerate and launch serious actions to catalyse deep change, rethinking the way we produce and use resources as well,” Kering Chief Sustainability Officer Marie-Claire Daveu said.

Rents in regional areas as safe as houses

Regional Australia saw the greatest rent hikes, up almost 50 percent in some areas over the past 12 months, PropTrack date reveals.

While property values have taken a dive in some regional centres, such as the Richmond-Tweed area in northern NSW, house rents in Katanning, three hours south west of Perth in WA, have risen by 47 percent to a median of $375 per week.

Port Broughton on the Yorke Peninsula north west of Adelaide, saw the next biggest rise for housing rents, up 43 percent to $340. Gatton, located between Brisbane and Toowoomba in Queensland, came in third, with a median house rent of $460, a 41 percent increase over the past year.

In a sign that post pandemic city life may be returning to ‘business as usual’, PropTrack reports the greatest increases in rental unit prices were all in inner city areas in the east coast states. The city of Melbourne unit rents recorded the highest increase of 42 percent over the past 12 months, at a median of $540 per week. The was followed by the little known Sydney inner city suburb of Darlington, up 38 percent to $565 per week and The Rocks, where unit prices rose by 35 percent to $975 per week.

Clear Island Waters on the Gold Coast recorded the highest unit increases outside Victoria and NSW, up 34 percent to $745 a week.

Great Escapes: Copenhagen’s Cozy, Egalitarian Chic

There are many cities often described as “laid-back” that don’t totally warrant it. Copenhagen warrants it.

The description, though, does not suggest laziness. Copenhagen, in fact, is an incredibly active and fit capital. Last summer, it hosted a raucous Pride Week followed a few days later by an Iron Man competition. In the city of around 600,000, the average age is 33.

Indeed, Københavners—as its inhabitants are known—are a cheerful and active bunch. A certain coolness is the overall vibe of the city, a feature that some say stems from the Danish Law of Jante, or a sense of modest egalitarianism. Danes resent ostentatiousness. Combine that with hygge, the cherished Danish virtue of coziness, and you have a society that is friendly and welcoming but not too over the top. In other words, a fitting place for a traveler.

Copenhagen occupies two islands on the Øresund strait, across from Sweden (a bridge leads to the much-less-interesting Malmö.). Founded by Viking fishermen in the 10th century, it did not become Denmark’s capital until five centuries later. Under the Danish monarchy, the city was transformed into the preeminent cultural and economic center of Scandinavia, a position it arguably maintains today.

Since World War II, the Danish economy has extended into high-end services, pharmaceuticals and green energy, to impressive results. At some US$68,000, Denmark’s GNI per capita is the seventh highest in the world and Danes enjoy a high quality of life. Their capital is one of the most financially dynamic in northern Europe. Yet the city strikes a fine balance between pursuing its modern, capitalist aspirations and maintaining its old-world charms.

In the city of around 600,000, the average age is 33. Marten Bjork, Unsplash

STAY

Hotel D’Angleterre is Copenhagen’s premier historic hotel, a regal, white-walled beauty dating back to 1755. Affectionately called “The White Lady on Kongens Nytorv”—the name for the wide, bustling square it overlooks—the hotel was extensively renovated in 2013. Well-equipped with modern amenities and some ninety rooms, D’Angleterre retains its Old French-inspired aesthetic. Elsewhere along Kongens Nytorv, considered the heart of the city, is the Royal Theatre as well as ample shopping, dining, and a stop on Copenhagen’s incredibly efficient metro. The spa and large indoor pool are both splendid.

For a more modern abode, book a room at Nimb, a fairy-tale-esque five-star boutique hotel in Tivoli Gardens, a pleasant amusement park first opened in 1843. Tivoli owns the hotel, which has a private entry into the magnificent park. The spacious, very hygge rooms are chicly decorated with Danish artThere is a superb rooftop terrace bar and pool, which often has live music. Visit the Asian-inspired spa and its steam room for an urban oasis.

EAT & DRINK

Copenhagen’s wonderfully varied culinary scene, which boasts 15 Michelin-starred restaurants, owes its dynamism to noma. The New Nordic superstar, which opened in 2003, has been rated as the best restaurant in the world (it recently announced it would close for regular service in 2024). Numerous noma-trained chefs have since opened their own eateries—the tastiest burger in the city can be found at POPL, whose founder is a noma veteran; Hart Bakery, one of Copenhagen’s most coveted bakeries, was opened by Richard Hart, formerly of both noma and Tartine.

But the noma buzz also infused pride and dynamism into Copenhagen’s dining scene more generally. One standout is Cofoco, a local favorite. The cozy basement spot serves up Mediterranean-inspired Nordic food like shrimp with foamy lobster bisque, pumpkin and yogurt. It’s a great place for a long, chatty meal over bountiful vin.

Restaurant Møntergade, located on the hip and buzzing Møntergade street, is a homey, chic spot with killer Nordic plates. The smoked eel is fantastic. Top-notch Italian pasta can be found at Undici, a casual, light-hearted place with picturesque positioning at the intersection of two cute canals.

Marchal, the signature restaurant on the ground floor of Hotel D’Angleterre, is well-worth a meal. The Michelin-starred spot transforms Nordic delicacies into scrumptious, inventive plates with a French touch. Try the venison with beets, blackberries, pear and pepper sauce. The Nimb Brasserie, inside the Nimb Hotel, is also French and fantastic.

Lovely libations abound in Copenhagen, a city fond of boozy celebration. One stand-out is RUDO, a vermouth bar opened by former noma sous chef and restaurateur, Christian Puglisi. Fiskebaren, a popular seafood restaurant in the Meatpacking District founded by a former noma sommelier, has an excellent wine selection. For beer, pop into one of trendy microbrewery Mikkeller’s many locations. Bright, inventive cocktails can be found at Ruby, which occupies a townhouse dating to 1740.

Tivoli Gardens. Ava Playle, Unsplash

EXPERIENCE

One Copenhagen attraction that cannot be missed is the surprisingly charming Tivoli Gardens. To call it an amusement park perhaps cheapens its appeal—the modestl -sized place is less Six Flags than it is Golden Gate Park. Lovely, verdant grounds are interspersed with rollercoasters, a large performance stage and the most beautiful antique merry-go-round you’ve ever seen. Good restaurants abound, too.

With its bright shophouses, pretty canals, grand buildings, and ancient streets, Copenhagen is an architectural wonder. In 2023, Copenhagen becomes a UNESCO World Capital of Architecture, which means a slate of citywide events. Anytime of the year, though, whether during the idyllic summers or the punishing winters, the best way to take in Copenhagen is on a boat tour. Hey Captain, located on the sunny and buzzing Ofelia Square, provides great guided trips, with comfortable, uncrowded boats and bottled craft beer.

Museum-lovers will find much to admire in Copenhagen. One not to be missed is the Glyptoteket, an art museum in central Copenhagen with a fantastic winter garden and lots of sculptures. The National Gallery of Denmark, also known as SMK, is also well-worth a visit too, featuring mountains of glorious Danish and international works from the past seven centuries (Matisse is on display through February.) Stroll through the nearby King’s Garden, a sprawling and serene park, on the way there.

Should You Beat Up Your Birkin? Why Worn-In Luxury Bags Are Selling Fast

ABOUT 20 YEARS ago, while dining in San Francisco, Lisa Unger Sandman was nearly startled out of her seat. “Oh, my God! That should never be on the floor!” shrieked a woman at a nearby table, pointing to Ms. Unger Sandman’s black Hermès Kelly bag. Chastened, Ms. Unger Sandman, now a retired banker in Raleigh, N.C., snatched up her purse which, in the current market, often costs at least five figures. “It caught me off guard,” she recalled. Today, Ms. Unger Sandman, 60, would ignore such a reprimand and isn’t so worried if her Kelly risks bodily harm. “If a bag has a scratch on it, that means you’ve enjoyed it. I’m happy with the patina.”

Ms. Sandman’s attitude reflects a growing trend. Lately, women are both embracing their handbags’ scratches and stains and seeking out visibly worn-in styles on the secondhand market. In its 2023 luxury consignment report, resale site the RealReal noted higher demand than ever for bags in “fair” (i.e., heavily worn) condition. Similarly, at resale platform Vestiaire Collective, co-founder Sophie Hersan reports that sales of worn-in designer bags have jumped 13% in the last six months.

Why the sudden craving for beat-up bags? One of the biggest draws, posits Katie Devlin of trends and insights company Stylus, is the Y2K revival and the resurgence of “indie sleaze,” a grungy, aughts-era aesthetic. She references the circa-2010 style of Mary-Kate and Ashley Olsen. Famously on their arms back then: decimated Hermès Kellys and Balenciaga bags (like the one shown here). “It’s the idea of looking expensive but like you don’t care—of not looking overly curated,” said Ms. Devlin.

In that regard, the trend, which encompasses luxury bags by the likes of Chanel, Gucci and Louis Vuitton, as well as label-free vintage styles, may be a backlash to the picture-perfect world of Instagram and wealthy reality TV stars (see the seemingly untouched designer bags that line the Kardashian clan’s walk-in closets). “There’s a move away from this idealistic, filtered look we’re so used to seeing,” said Dayna Isom Johnson, a trend expert at online marketplace Etsy, where searches for Y2K handbags are up 51% in the last three months compared to the same period last year. “Now people are really embracing the realness and messiness that comes with living everyday life.” Not using something that costs so much, Ms. Isom added, makes people feel “very wasteful.” Elizabeth Layne, chief marketing officer of resale site Rebag, has observed a resistance to feeling “too precious about [luxury] workhorse bags of lower grades. You don’t have to worry if it gets a scuff.”

New York stylist Malina Joseph Gilchrist agrees. “There’s a quiet luxury thing happening…a reaction to a congested market of handbags that are logoed and attention-seeking.” With a worn-in bag, she said, “you look like you’re not trying too hard.”

For Sapna Bhatla, 42, a business strategy consultant in Philadelphia, beat-up bags—whether trendy or not—speak to her identity. After immigrating to the U.S. from India, her style-savvy mother would combine her traditional attire with vintage estate-sale finds. So “pristine feels contrived and inauthentic to me,” Ms. Bhatla said. “If you see my body, I have scars. I have marks. I have a life that’s been lived. And I’m happy to have signs to remind me of it. I like things that show a test of time and sturdiness and resilience.”

She owns an arsenal of worn-in designer purses—some she marred herself, others that she scooped up on eBay. Among her favourites is a decades-old, no-name leather bag she found at a Paris flea market. “I’m not so crazy about brand names when it comes to vintage. If it’s here today, it’s already good quality.”

Those scars should not be haphazardly patched up, said Sofia Bernardin, founder of luxury vintage platform ReSee. “There’s nothing worse than a badly repaired bag. It’s like a woman who’s had too much Botox—she’d have been better off not doing anything.” Still, not all decay is desirable, said Kristin Whalen, 36, a San Francisco senior director of client management and bag obsessive who’s had some of her styles since high school. For her, protruding structural wires and age-induced deformities are nonstarters. Trend analyst Ms. Devlin maintains that, while the optimal degree of destruction is a personal choice, “if it’s not functional and your strap is falling off, it’s time to say goodbye.”

Is inflation driving this so-called “trend”? Recently, the cost of new luxury bags has skyrocketed. According to Jefferies Group, the price of Chanel’s coveted small classic flap bag increased about 60% between 2019 and 2022 in the U.S. Meanwhile, on the RealReal, bags in “fair condition” cost on average 33% less than already-discounted “good condition” options, said Noelle Sciacca, that site’s fashion lead. Lara Osborn, reseller Fashionphile’s vice president of procurement, offers a reality check. “We have to ask ourselves: Is a [worn-in] bag really chic, or is the economy just dictating that we’ll be wearing bags with a lot more love?”

Ms. Joseph Gilchrist insists it’s the former. If your bag’s beat-up, she said, “you just look cooler.”

How to Make A Beautiful Disaster

Is your fancy handbag looking too new? Here, four inadvisable but foolproof ways to pulverise even the sturdiest purse.

1. Toss your pristine purchase in the washing machine—and choose the most punishing spin cycle. For extra distress, add bleach.

2. Give that immaculate purse to your puppy. If he seems uninterested, slather it in peanut butter and present it again.

3. Buy a top-notch bow and arrow and use your bag for target practice. Ignore its faint whimpers each time it’s pierced.

4. Drop it at an osprey breeding site so a hen can use it in her nest. Once the chicks have fledged, retrieve your totally tattered tote.

The Wall Street Journal is not compensated by retailers listed in its articles as outlets for products. Listed retailers frequently are not the sole retail outlets.

The sustainability trend coming to an office near you

Everyone is talking about environmental sustainability these days. From growing our own food to opting for less plastic packaging, there is an increasing desire to embrace practices that have as little impact on the environment as possible.

One of the last sectors to seriously consider the way their behaviours are contributing to waste is the office. 

Prior to COVID, most offices were refurbished every five to seven years, in line with leasing arrangements. However, quality office furniture can come with warranties of 10 or more years. What to do with used – but still useful – furniture at the end of a lease has been a challenge.

The result is 35,000 tons of furniture from Australian offices ends up in landfill every year.

The Cosm chair from Living Edge has been built to last considerably longer than the standard office lease

Designer furniture retailer Living Edge is calling on businesses to end the waste with a shift from one of purchase to leasing. This would result in the furniture supplier taking responsibility for the product over a lifetime. 

Sustainability strategist at Living Edge, Guy Walsh, said while it has been a slow burn convincing businesses, interest has gained pace in a post-COVID, hybrid-working environment.

“We have been talking to the market about the life cycle model since 2016,” Mr Walsh said. “But in the last 12 months, we have seen an increase in interest, how it works and the sustainability benefits.”

He puts this down in part to the number of businesses committing to sustainability targets, sometimes without a plan for how to achieve them.

“The big organisations are all making their sustainability pledges and they are working out how to deliver them later,” he said. “You can’t just make claims anymore – you have to provide evidence. We can pull a report out and demonstrate the outcomes, which can be useful for external and internal communications.”

With many workers reluctant to return to the office full time, Mr Walsh said the need for a floor full of office furniture has also changed. A leasing model offers flexibility.  

“One of the things COVID created was uncertainty, which requires more agility (from businesses),” he said. “We have promoted that concept around the life cycle model, which has a lot more agility than a traditional model. 

“If the world changes, as it has in recent years, you need a strategy for what to do with those assets. One top of that, through a sustainability lens, change can often result in waste.”

Living Edge is the main distributor for Herman Miller, which has built its reputation on the high quality, ergonomic task chairs favoured by big business.

Mr Walsh said the chairs, such as the Aeron, come with a 12-year warranty. Under a leasing arrangement, businesses could return their chairs to Living Edge where they will be triaged according to useability under their LivingOn scheme. 

“The top outcome is it gets refurbished and reused by the original purchaser,” he said. “The next option is we refurbish it and we resell it as a ‘second life’ chair. The next option is to recycle the parts. The last, and least attractive option is that it goes to landfill.”

It’s good news for commercial landlords, as well as tenants but it does require a different approach from the standard office fit out. One concern is how to ensure furniture is identifiable by the supplier as theirs. The other is a structural change in how budgets are created and managed.  

“One of the big barriers traditionally is that furniture falls under capital expenditure but a lease model would put it under operational expenditure,” he said. “You are moving the cost from a one-off figure to ongoing. It is purely the legacy of how furniture has been bought for office spaces.”

While the model is still in its infancy both here and in Europe, Mr Walsh said there are already signs that it is the way of the future.

“We have heard examples of it happening in Europe but to my knowledge, we haven’t seen that ‘lift off’ moment,” he said.

Lucian Freud’s Portrait of His Daughter Debuts at Auction With an Estimate Over $18 Million

A portrait Lucian Freud painted of his daughter Isobel in 1997 will make its auction debut on March 1 at Sotheby’s London, with an estimate of between £15 million and £20 million (US$18 million and US$24 million).

Painted over a year with more than 70 sittings, the portrait depicts Isobel Boyt, known as Ib to her family, reading Marcel Proust’s 4,000-page novel Remembrance of Things Past, wearing a loose dress, with her bare feet up on a chair and the book in her lap.

The portrait, aptly titled Ib Reading, was acquired by a private collector shortly after its creation and has remained in the same collection since. It was last seen publicly more than 20 years ago in an exhibition in New York, according to Sotheby’s.

The portrait will be offered as a highlight of Sotheby’s evening auction of modern and contemporary art.

Other star lots of the sale include Pablo Picasso’s portrait of his daughter, Maya, formerly owned by Gianni Versace and estimated to sell for between £12 million and £20 million; a newly restituted painting by Wassily Kandinsky, Murnau mit Kirche II, which is expected to fetch in the region of £35 million; and one of Gerhard Richter’s Abstract masterpieces, Abstraktes Bild, estimated in excess of £20 million.

Freud’s Ib Reading is one of five painted portraits of his daughter. The first was Large Interior, Paddington (1968-69), which was made when Isobel was just seven years old. The portrait is now in the collection of the Museo Nacional Thyssen-Bornemisza in Madrid, Spain, which is hosting a major retrospective of the artist, Lucian Freud: New Perspectives, until June.

In 1992, Freud also painted Isobel with the father of her children, while she was pregnant with her youngest daughter Alice.

“My father never chose the pose of his sitters. He would often make suggestions, but he never said, ‘I want you wearing this and sitting there’. There were limited possibilities with the studio too,” Isobel, 60, said in a statement through Sotheby’s.

Reading the novel Remembrance of Things Past while sitting for her father was her own choice, she said in the statement. “I wished to read. It was something I normally wouldn’t have time to do with three young children. It was an opportunity,” she said.

Freud’s auction record was set by his painting Large Interior W11 (After Watteau), 1981-83, which sold from the collection of Paul Allen for US$86.3 million last November at Christie’s in New York.

Four Stars for Peeling Paint and Broken Doors? What’s Behind High Airbnb Ratings

Airbnb properties have a grading problem, hosts and guests say: Most U.S. rentals earn near the top rating of five stars.

Hosts are facing more competition for bookings because Airbnb has added more properties for rent, and as a result hosts say their ratings matter more to set them apart. Some hosts are experiencing what they’ve named an “Airbnbust,” or a drop-off in bookings due to the jump in short-term rental properties.

Adding to the pressure is the Airbnb algorithm that determines which “three-bedroom-with-a-pool-and-fire pit” comes up during a guest’s search. Superhosts who have an overall average of at least 4.8 stars—among other factors—typically earn more than regular hosts. The Airbnb algorithm factors in many criteria, including availability, price, responsiveness of host, number of cancellations by the host, as well as superhost status when ordering search results. Also, hosts who receive repeated ratings of one to three stars are told to improve or risk being delisted.

The average rating for homes in the U.S. on Airbnb, excluding room rentals, was 4.74 stars in 2022, with nearly identical or identical averages in 2021 and 2019, according to market research firm AirDNA.

With most listings ranking above 4.5 stars, guests say they can have trouble discerning what separates a 4.6-star property from a 4.8-star property. Others admit to leaving a positive review so as not to harm the host—or receive a negative review of their performance as a guest in turn.

Recently, at an Atlanta Airbnb currently rated 4.67, the doorknob on an automatic door to the bedroom got jammed, trapping Ashanti Carey inside. The 25-year-old lawyer from Kansas City, Mo., was visiting Atlanta with her mom and sister, who had to pull on the door from the outside to free her. She left after one night.

The host issued a partial refund, Ms. Carey says. Ms. Carey says she didn’t want to leave a five-star review due to getting locked in a bedroom, and because the property was dirty and dated. But she also didn’t want to damage the host’s livelihood.

She left four stars and a vague reference to her experience, mentioning she only stayed one of three nights “due to some issues with the property.” The house could be a good fit if the host made improvements, she wrote in her review.

“I felt somewhat pressured to not necessarily be forthright,” she says, adding that she is more skeptical of reviews now.

Airbnb says its reviews aren’t inflated. The company believes most guests leave ratings and reviews that authentically reflect their experiences, a spokeswoman said in an email. The company says it removes hosts who consistently earn poor ratings and don’t show signs of improvement, which is why most available listings are highly rated.

U.S. short-term rental availability hit a peak in 2022, according to AirDNA. Airbnb said in an earnings call that it added more than 900,000 listings globally in 2022, a 16% increase from the previous year, excluding listings in China.

More than 120 million reviews were left between hosts and guests on Airbnb between Oct. 1, 2021 and Sept. 30, 2022, the company says.

Airbnb guests rate rentals on factors including cleanliness, location and communication from the host. Some hosts are taking it upon themselves to ask guests for high ratings, both directly, which runs afoul of the platform’s rules, and by posting signs in their rentals.

Airbnb’s rules state: “Members of the Airbnb community may not coerce, intimidate, extort, threaten, incentivise or manipulate another person in an attempt to influence a review.”

Erin Kirkpatrick started renting out her two-bedroom apartment in downtown Burlington, Vt., this past fall. After more than 30 guests, she earned superhost status with a 5.0 rating.

Then, earlier this year, one guest said Ms. Kirkpatrick was very accommodating and the unit was “immaculate” — and left four stars for the overall rating. A second four-star overall rating dropped Ms. Kirkpatrick’s overall rating from 4.98 to 4.91, which alarmed the superhost, she said, because she needs an overall average of at least 4.8 stars to keep the status.

Ms. Kirkpatrick said she wondered what, if anything, she could have done differently. She says she’s now more conscious of her pricing so that guests feel that they’re getting a good value. She says she won’t charge $500 a night during an upcoming college graduation weekend despite demand, so her guests who do book feel they’re getting a good value. She makes sure to keep snacks, water and seltzer in the unit well stocked.

Her two most recent guests rated her apartment five stars for the overall experience.

Online reviews proliferate, and some other travel sites such as Yelp and Tripadvisor focus on stamping out fake reviews from people who have never visited a hotel or eaten at the restaurant that they rave about or trash.

Airbnb says it works to make the review system as fair as possible, including only allowing reviews between hosts and guests with confirmed bookings and requiring reviews within 14 days of checkout so they are timely. At Airbnb’s smaller rival Vrbo, top hosts have at least a 4.3 overall rating, the company says, and the average rating globally is 4.6 stars out of 5.

People who leave ratings on sites where they themselves are also rated, as with services including ride-sharing services Uber and Lyft and Vrbo, are generally more likely to leave positive reviews, researchers say.

“It’s very different when you’re dealing with a big, faceless corporation like an airline versus an individual human,” says Camilla Vásquez, a professor of linguistics at the University of South Florida who has been studying online review systems for over a decade.

As short-term rentals have exploded, travelers have increasingly made direct comparisons to hotels, where the number of stars signifies the quality of the property, hosts say.

Airbnb says it provides guests with definitions of the overall star rating and individual category star ratings. For the overall rating, a five-star stay is defined as great, a four star stay is good, and three stars is OK.

Still, many hosts say the rating system isn’t clear enough to guests or to hosts.

Caitlin Bates, who rents out her property outside of Sedona, Ariz., on Airbnb, made a refrigerator magnet to guide her guests. Five stars means the guest enjoyed their stay and any issues were addressed. Four stars means the experience was just “ok” and issues weren’t addressed. The dreaded one star equals a “horrific experience.” The magnet says hosts with less than 4.7 stars are at risk of being delisted, something Ms. Bates says she heard from other Airbnb hosts. She sells the magnet on Etsy for prices starting at $10.95 and estimates she has sold at least 300.

Ms. Bates has an average rating of 4.94.

Airbnb says it doesn’t automatically remove hosts with averages under 4.7 stars. Listings might be removed if there are severe or repeated instances of not meeting quality standards, a spokeswoman said. Ms. Bates’s magnets aren’t endorsed by Airbnb or an accurate reflection of the company’s review system or policies, the spokeswoman said.

Airbnb hosts who receive multiple low ratings—one to three stars—may receive an automated email from the company. The subject line: “Improve your ratings to keep your listings active.” Listings receiving a rating between one and three stars are at higher risk of being suspended, which means the property will be removed from search for five days, according to the email. The emails also provide resources and tips to hosts to help them improve, Airbnb says.

Some guests choose to give low ratings in the hopes of getting freebies such as a refund, hosts say. It is against Airbnb policy for guests to leave negative reviews to punish hosts for enforcing the property’s rules.

Airbnb says it generally doesn’t mediate disputes over the truth of reviews. The company encourages hosts and guests to post responses to reviews within 30 days as the main form of recourse for what they see as unfair reviews. People can report reviews that violate Airbnb’s policy, and the company will investigate whether to remove them.

A recent Airbnb rental that was rated 4.8 stars had ratty furniture and he could hear noise from a bar down the street, says Baird Kleinsmith, a 40-year-old from Durango, Colo. In another, rated 4.6, there were water stains on the walls and the apartment was beat up, he says.

So he gave them bad reviews, including rating one a 1 star. In the past, Mr. Kleinsmith, who rents from Airbnb about 10 times a year, seldom left ratings under four stars because he didn’t want to harm the host, he says. “As a guest, I want to know from prior guests what was good and what was bad about the property,” says the owner of multiple self-storage facilities.

“So I’ve changed my approach.”

More properties for auction and higher clearance rates as confidence returns to the Australian market

Australian auction rates have picked up the pace as summer winds down, with homes scheduled to go under the hammer above 2,000 for the first time this year, CoreLogic reports.

A total of 2,459 homes in the country’s capital cities are listed for auction this week, up 33.2 percent on the previous week. While it’s a substantial rise in one week, numbers are still -27.4 percent down on this time last year.

Melbourne has the most homes set to go under the hammer, with 1,142 homes scheduled, representing a 40.3 percent increase on last week. This is followed by Sydney, with 907 homes. It’s a quieter week in the smaller capitals, with 144 homes scheduled for Brisbane, followed by Canberra with 136 and Adelaide with 121. In Perth, six homes are scheduled for auction, while there are just three homes going to market across Tasmania.

In further signs that confidence is returning to the market, CoreLogic data reveals clearance rates are also on the rise. In Sydney, the clearance rate for the last week of February now stands at 71.9 percent, with the inner west the strongest performer at 85.7 percent.

In Melbourne, where last week’s clearance rate was 65.6 percent, the outer east recorded the highest clearance rate of  83.3 percent, according to CoreLogic.

Adelaide had the highest clearance rate of the capitals however, with 72.6 percent, while Perth’s clearance rate was just 28.6 percent.

After Testing Four-Day Week, Companies Say They Don’t Want to Stop

Want to try a four-day workweek? Put this on the boss’s desk.

A large majority of U.K. companies participating in a test of a four-day workweek said they would stick with it after logging sharp drops in worker turnover and absenteeism while largely maintaining productivity during the six-month study.

In one of the largest trials of a four-day week to date, 61 British businesses ranging from banks to fast-food restaurants to marketing agencies gave their 2,900 workers a paid day off a week to see whether they could get just as much done while working less, but more effectively. More than 90% said they would continue testing the shorter week, while 18 planned to make it permanent, according to a new report from the study’s organisers.

The idea of working less than the conventional 40 hours over five days a week has been discussed for decades. The concept has gained new momentum recently as employers and employees seek new and better ways to work. The Covid-19 era ushered in broader acceptance of remote and hybrid work arrangements. Now, some employers, as well as policy makers, are exploring whether a shorter workweek can improve employee well-being and loyalty.

“At the beginning, this was about pandemic burnout for a lot of employers. Now it’s more of a retention and recruitment issue for many of them,” said Juliet Schor, an economist and sociologist at Boston College. Her team helped conduct the study with the nonprofit advocacy group 4 Day Week Global; U.K.-based think tank Autonomy, which focuses on issues including the future of work and climate change; and researchers at Cambridge University.

Global tests

Companies in the U.S. and Canada recently concluded a smaller pilot of a four-day week led by the U.K. study organisers, and similar trials are in the works in Australia, Brazil and elsewhere. Consumer-goods company Unilever PLC recently tested the concept in its New Zealand offices, while Spain’s government plans to pay companies to experiment with a four-day week. In a study in Iceland involving more than 2,500 employees across industries, researchers found most workers maintained or improved their productivity and reported reduced stress.

Widespread adoption faces a number of obstacles. Most companies that have experimented with a four-day week are small employers. Many larger companies haven’t embraced the concept. And at some companies trying four-day weeks, some workers have reported struggling to get everything done in that time.

In the U.K. study, which ran from June through November, most employees didn’t work more intensively, researchers say. Rather, they and their bosses sought to make work days more efficient with hacks such as cutting back on meetings and ensuring employees had more time to focus on completing tasks.

On a scale of 0 (very negative) to 10 (very positive), employers on average scored their productivity and performance over the six months at 7.5. A survey conducted halfway through the trial found 46% of companies said their business productivity had remained about the same, while 34% reported a slight improvement and 15% a significant improvement.

Meanwhile, 39% of employees said they were less stressed than before the pilot program started; about half reported no change. Nearly half observed improvement in mental health, and 37% also noted an improvement in physical health.

Zapping meetings

Claire Daniels, chief executive of Trio Media, a 13-employee digital-marketing agency based in Leeds, England, said she joined the trial to see whether a more effectively structured week could improve her business’s productivity. Before starting, she and her staff tracked and analyzed their workweek and concluded 20% of it was wasted in unessential meetings, business travel and other inefficiencies.

“So immediately, we knew we weren’t having to cram extra work in the four days,” she said.

Staggering everyone on Monday-Thursday and Tuesday-Friday schedules—with each employee having a partner to cover the day they were off—Ms. Daniels said she and her staff stopped holding marathon daily team meetings. And in longer meetings involving clients and multiple presentations, employees would drop in for portions and leave again, depending on how necessary their attendance was.

The hardest part, she said, was for staff to make sure they didn’t slip back into old work mind-sets or habits. On the whole, productivity was the same, or slightly improved, and revenue rose 47% compared with the year-earlier period, she said.

Ms. Daniels said she wants to continue the trial another six months before making a permanent change, “but I don’t see us going back to a typical five-days-a-week model.”

How Hybrid Work Is Changing Offices of the Future

Workplaces that look like your living room; flexible, multi-use spaces; outdoor terraces. Today’s new hybrid work styles are reshaping the office buildings of tomorrow.

Leading architects and real-estate developers are pioneering concepts aimed at workers who are splitting their time between home and office, and they predict these innovations will become mainstream in the years to come.

The rethinking of office design comes as the return of employees to office buildings remains sluggish, reflecting new remote and hybrid workplace strategies. Workers’ office use on average is around 50% of pre-pandemic levels in 10 major U.S. cities monitored by Kastle Systems, which tracks security swipes into buildings. Employee engagement—a measure of how involved and enthusiastic workers are about their work and workplace—slipped in 2022 for a second consecutive year, according to a survey Gallup released in January.

Making the office a destination, with coordinated on-site days for collaboration, could go a long way in making workers feel more engaged, says Jim Harter, chief scientist for the workplace management practice at Gallup.

Architects are increasing access to the outdoors, even in skyscrapers. More office buildings will include “touchdown” spots where visiting employees can log in and work, says Annie Draper, a director who specializes in flexible office spaces at Hines, a global real-estate developer based in Houston. At Deutsche Bank’s new Americas headquarters in New York City, designed by architecture giant Gensler, trading floors include lockers for hybrid employees, to help avoid lugging equipment back and forth.

The latest changes in building architecture and design are more than temporary, reflexive responses to the pandemic, architects, developers and facilities managers say. Here’s a look at some of the trends that will transform the next generation of office buildings.

At Home at the Office

Your office is going to look a lot more like your living room (that is, if your living room has high-end decor). In a trend dubbed “resimercial,” short for residential commercial, some office designers are going for an at-home vibe with fewer desks and more couches, armchairs, stools and bistro tables—even fireplaces. The goal is to make offices less corporate-looking and more welcoming to employees who have become accustomed to working in the comfort of their homes.

The residential touches long used by gaming and tech companies will be showing up more broadly, says Talia Olson, interior designer at JPC Architects LLC in Bellevue, Wash. A recent client who wanted a complete office redo showed images that looked residential, with sofas, pillows, area rugs and lots of plants, Ms. Olson says. “A lot of this is getting people back into the office after we’ve been working from home for some time,” she says. “So why not design a space that has that feeling?”

Texas Tower, a 47-story office tower in downtown Houston by Hines that opened in December 2021, has a living-room feel in amenity areas furnished with sofas, armchairs, ottomans and coffee tables. Tenants include Hines, international law firm Vinson & Elkins LLP, and Cheniere Energy.

Lounge-like areas that in the past would have been reserved for executives will be available to all employees in the future, designers say. At the office headquarters Gensler designed for Marriott International Inc. in Bethesda, Md., opened in September 2022, a communal space on the 21st floor features a fireplace and cabinets with an inset TV screen. Nearby are sofas and seating at a high-top island where employees can work or meet with colleagues—with beverages at hand.

A Flexible Approach

New office designs reflect another lesson from pandemic remote work: Be flexible.

The office of tomorrow will have more open environments that accommodate varied working preferences, says Brett Williams, senior managing director, asset services leadership at commercial real-estate firm Cushman & Wakefield. These will include a mix of areas for individual focused work, private meetings and collaboration—often within steps of each other rather than on different floors as in the past.

Meeting rooms will be “less boardroom-style,” Mr. Williams says. Instead, they will be adaptable areas that can be changed to suit the specific needs of a meeting. To accommodate hybrid gatherings, they will increasingly be equipped with immersive technology that allows those on videoconference to feel as though they’re in the room, office planners say.

The new Marriott headquarters in Bethesda has an atrium-style area with a staircase that connects three floors. It could accommodate a thousand-person town hall, doing what a traditional auditorium would have done in the past, says Jordan Goldstein, co-firm managing principal at Gensler. “We’re seeing, in all the projects we have on the board, the need to think about how space can be flexible to bring people together in different ways—spaces that can convert, and be something that is comfortable as it is but then could easily handle greater capacity,” he says.

Equipment and instrumentation company NI Corp. (formerly National Instruments) is renovating its Austin headquarters to create a mix of large traditional conference rooms, small conference rooms, focus rooms and bookable areas of various sizes. Furniture is on casters to boost flexibility.

“What we discovered in designing this workplace of the future is that we need a workplace that has choices for all these work styles,” says Scott Strzinek, NI Corp.’s senior director of global facilities. The company had employees test the changes, designed by Gensler, in a portion of its building before going ahead with a renovation of 450,000 square feet, to be completed in 2024. NI Corp., which has 70 offices in 25 countries, plans to roll out the designs to other locations over the next few years.

A Breath of Fresh Air

Outdoor terraces, greenery and access to natural light and windows are a major feature in plans for new buildings. While Covid concerns spurred some of the open-air ideas, they are also aimed at replicating what many employees enjoyed when working from home.

“A huge priority for us is to add outdoor space with new developments vertically throughout and as many floors as possible, whether it’s a skyscraper or a shorter stack,” says Whitney Burns, global client strategy lead at developer Hines.

In the past if there was a terrace in the building, it was only for that one lucky company. “We want to make it more accessible for all tenants,” Ms. Burns says.

Architects see a move away from lining the perimeters of buildings with offices, a change that would allow more employees access to windows. One building Hines is developing will have “air porches” aimed to give a balcony feel in the absence of an actual deck. These areas, next to windows, are divided from the rest of the office with glass walls. The windows can open for fresh air, and the porches can be decorated with plants and lounge chairs.

At Lever House, a landmark 1951 office building on New York City’s Park Avenue, the third floor that historically would be leased to a tenant is being turned into an amenity floor for the entire building, featuring a 13,540-square-foot outdoor area with chairs and tables. “Now everyone in the building will be able to enjoy that outdoor space,” says Ben Friedland, vice chairman of CBRE Group Inc., which represents the building’s landlord. Use of the amenity floor—which also includes indoor co-working areas, conference rooms, dining rooms and a bar—is included in the rent. There are charges for food and beverages and to reserve conference rooms.

Some buildings will bring the outdoors inside. The London office of global design and consultancy Arcadis, opened in 2021, includes an airy “garden room” with natural light and plants. It is also a no-laptop zone, says Nilesh Parmar, the company’s business area director of places for North America. “This provides an area where people can relax, decompress and either enjoy time with their work colleagues or have a less formal business meeting.”

A Quiet Place

The libraries appearing in new office buildings have less to do with books and more with the “Quiet Please” sign.

“This idea of a need for more privacy is really driving a number of different space types that we may not have seen in the office before, because everyone works differently,” says Janet Pogue McLaurin, global director of workplace research and a principal at Gensler.

“To focus on my work” was the top reason employees said they wanted to come into the office in a Gensler survey of 2,000 employees in the U.S. conducted between June and August of last year, with 48% expressing that sentiment. This marked a shift from the previous year’s survey, where respondents placed greater importance on working in person with teams and colleagues.

“We have to create more spaces for people to do concentrated work, and that’s starting to drive quiet zones in an office, like those you might see on Amtrak [trains],” she says. “They may be tech-free zones or they may just be areas where everybody knows not to take a phone call.”

These efforts are also aimed at introverts and other workers who thrived working alone or in quiet surroundings during the pandemic and wondered if productivity would suffer in the return to the office. In addition to libraries and other no-noise zones, individual soundproof booths will be must-haves for office buildings, architects and developers say.

The London office of McCann advertising agency, completed in 2021, has an 800-square-foot library as well as designated quiet rooms where employees can retreat and recharge. Gensler, which designed the library, created an etiquette guide that stipulates no food and no group meetings. It has a large communal table, reference books and plush carpet that helps damp sound.

Hines plans to incorporate “head-down” areas in newer buildings that include rows of egg-shaped chairs that face outward away from the office. They provide visual privacy and noise blocking, says Ms. Burns of Hines. “When you’re sitting there, you feel like you have a private space.”

A Rare Frank Lloyd Wright-Designed California Home Sells for $22 Million

A significant Frank Lloyd Wright-designed home in Carmel-by-the-Sea, Calif., has sold for its asking price of $22 million, an enormous price per square foot for the area.

The single-storey, roughly 1,400-square-foot property, on a rocky promontory overlooking Carmel Bay, is the only home of its kind completed by architect Frank Lloyd Wright in a coastal environment, according to paperwork submitted for its designation on the National Register of Historic Places. Sitting on a triangular site, the house appears like a ship’s prow growing out of the landscape.

According to the historic places report, the home’s most prominent feature is a hexagonal living room framed in glass panels with panoramic views over the coastline. The three bedrooms are located in wings to the rear of the property, which is shaped like an arrow. Mr. Wright had the lot lowered 4 feet to enable the house to melt into the landscape, the report shows. The house made the National Register of Historic Places in 2016, records show.

The sellers are a group of descendants of the home’s original owner Della Walker, an artist and the widow of Minneapolis lumber executive Clinton Walker. The couple relocated to California in 1904, living there for four decades before Mr. Walker’s death in 1944, the historic places report says. The descendants couldn’t immediately be reached for comment.

The buyer is Esperanza Carmel LLC, records show. The company’s website describes it as a real-estate investment and development firm. It is headed by Patrice Pastor, a businessman and property developer based in Monaco, and owns other significant properties in the Carmel area. A spokesperson for Esperanza did not immediately respond to a request for comment.

Ms. Walker originally wrote to Mr. Wright in 1945, asking him to consider the project, according to the historic places report.

“I am a woman living alone—I wish protection from the wind and privacy from the road and a house as enduring as the rocks but as transparent and charming as the waves and delicate as the seashore,” she wrote. “You are the only man who can do this—will you help me?”

Mr. Wright quickly agreed to work on the project, expressing his pleasure that her letter was “brief and to the point.” In later correspondence between the pair, Ms. Walker wrote to the architect that her daughter had sent her a picture of Fallingwater, the architectural house Mr. Wright had designed in Pennsylvania. “If Mr. Wright did this for a stream, what will he do for an ocean,” she said her daughter wrote.

The original construction of the house, constructed from cedar wood, Carmel stone, steel, copper, concrete and glass, was completed in 1952. In 1956, a studio addition was designed by Mr. Wright for Ms. Walker’s craftwork and weaving at the southeast corner of the building. The plans were eventually used to make way for an expanded primary bedroom in 1960, the report says. The total lot size is around 14,000 square feet and includes a small beach, according to the sellers’ agent.

Canning Properties Group of Sotheby’s International Realty represented the sellers in the deal. Jessica Canning said the home was a rare combination of the ideal setting and architectural pedigree. Though she declined to comment on the buyer, she said the property had sold to the buyer with the very first showing.

“They fell in love with it exactly how it is, right down to the pillows and the books,” she said, noting that all the furniture was included in the sale. “The authenticity and character of it was one of the major draws.”

The famous Carmel Butterfly house is named for the shape of its roof. It has an asking price of US$40m

The property is one of a number of architecturally significant homes that have been marketed for sale in Carmel over the past year. Carmel’s Butterfly House, known for its distinctive Midcentury Modern architectural look, is on the market for $40 million. In July, Brad Pitt bought a roughly century-old home designed by Charles Sumner Greene, a prominent early 20th-century architect known for championing the American Arts and Crafts movement, for $40 million.

Golf Course Living Is Paradise—Except for the 651 Balls Pelting Your House and Yard

Erik and Athina Tenczar in 2017 bought what they thought was their forever home in Kingston, Mass., a four-bedroom colonial that sits near a left-hand dogleg on the 15th hole of the Indian Pond Country Club.

To their dismay, the Tenczars soon learned that ambitious golfers regularly attempted to cut the corner, putting their house in the line of fire.

Hundreds of golf balls have pelted their house and yard since, turning the residence, they say, into a living hell. The carnage includes eight broken windows and damage to the home’s siding and deck. They have forbidden their three young children to play in the yard, worried they could be hit by a drive.

The couple sued the club the year after moving in, alleging the barrage of balls constituted civil trespass. “We are constantly thinking about the next golf ball that’s going to hit,” Mr. Tenczar testified at a 2021 trial.

The jury awarded the Tenczars $3.5 million in damages, but the highest court of Massachusetts issued a mulligan of sorts in December 2022, throwing out the verdict and ordering a retrial, scheduled for August. A new jury will need to consider whether the number of balls hitting the home is reasonable, the court said.

Living amid the manicured beauty of a golf course has its perks, from picturesque views to quick access to the clubhouse, but it has always come with the risk of intrusion from a badly missed slice or hook.

Still, even after the construction of thousands of golf-course residential developments, there are open questions of law—and neighborly decency—about how many errant shots are too many.

Brit Stenson, the president of the American Society of Golf Course Architects, said designers use hazards, bunkers and water to direct play away from homes along holes, but it is nearly impossible for houses to avoid being hit altogether.

“Today’s golfers often swing really hard at the ball, but they don’t always know where it’s going,” he said.

In the Tenczars’ case, the state high court didn’t cite a legal precedent for its test but said that an easement on their property gave Indian Pond the right to operate a golf course in a reasonable manner. “With golf, some errant shots, way off line, are inevitable, but a predictable pattern of errant shots that arise from unreasonable golf course operation is not,” it said, calling for improved jury instructions at the next trial.

In the U.S. more than 3,300 golf courses operate at over 2,750 facilities classified as residential developments, according to the National Golf Foundation. Many developments have easements and restrictions baked into surrounding residential lots, releasing golf courses from liability and in some cases allowing golfers to retrieve balls from properties. Despite the legal barriers, some homeowners have tried to hold courses or individual golfers accountable.

Leslie Stevens, whose Parker, Colo., home sits on the right side of a fairway, said management at the Black Bear Golf Club changed hands in recent years, and new ownership sought to increase the total number of daily rounds. More golfers has meant more wandering drives pelting her property.

Ms. Stevens said she has chased down golfers on a couple of occasions and asked them to pay for windows they shattered. “They would say, ‘Oh no, you assume the risk. I don’t,’” she said.

She installed protective netting in her backyard but later took some of it down because of the diminished aesthetics. “Who wants to be on a golf course,” she asked, “where you feel caged in?”

The Black Bear’s general manager, Heath Robberson, said the golf club takes homeowners’ concerns seriously and repositions tee boxes when reasonable.

“However, homeowners who purchase a home on a golf course should expect the periodic intrusion of golf balls, especially when they’ve agreed to assume such risks through the covenants governing their property,” he said.

In Anaheim, Calif., Casa Hermosa Mobile Home Park and Dad Miller Golf Course lived in harmony next to one another for years. Balls began striking some mobile homes in 2021, residents say, when a tee box was altered and trees removed while the course was working on a flood channel.

In addition to the damaged property, some residents no longer feel safe tending to their gardens, said Bobbie Crawford, an 80-year-old park resident who manages the facility. “I guess we could buy bicycle helmets,” she said.

Last month the mobile home park’s owner sued the city of Anaheim, which owns the course. An Anaheim spokesman said Dad Miller has been a great neighbor and the city was surprised and disappointed by the suit.

Michael Johnstone, who specialises in forensic investigations of golf-course design and served as an expert witness for the Tenczars in Massachusetts, said he recommends changes to courses, such as reversing a hole or turning a par 5 into a par 4, to correct for a high frequency of wayward shots landing in a certain area.

On rare occasions, though, golfers intentionally try to hit a home, Mr. Johnstone said.

“It’s Friday night and they’re having beers and they say, ‘Who can hit the brick house?’” he said.

The Tenczars, who aren’t golfers, testified that when they purchased the newly built home they never asked questions about the course and didn’t foresee dealing with stray balls.

John Flemming, an attorney for Indian Pond Country Club, said simple due diligence would have given them an idea of what to expect. “All you have to do is google it,” he said.

The Indian Pond course met all the golf design guidelines, Mr. Flemming said, adding that the builder of the Tenczars’ home removed trees and vegetation that helped serve as a buffer. In 2019 the course made alterations to direct shots away from the home, he said, reducing the number of balls hitting the property to between 89 and 99 a year from about 130.

After the jury verdict, two of the 15th hole’s tee boxes were moved farther back, which helped reduce the number of balls landing on the property to 10 for the 2022 season.

At the 2021 trial, Robert Galvin, the Tenczars’ attorney, introduced as evidence a laundry basket containing 651 balls the couple had collected. The judge accepted a photo instead of the basket to alleviate the burden of the clerk’s office storing the balls.

Ms. Tenczar testified that the ordeal gave their then-5-year-old daughter a bad impression of the sport.

“She recently asked me why golfers are bad people, and I had to explain to her that they are not,” Ms. Tenczar told jurors. “There is an issue at the golf course that needs to be fixed, and mommy and daddy are trying to fix it.”

THE AFFORDABLE AUSTRALIAN REGIONS BUCKING THE PRICE FALL TREND

It’s easy to think that Australian house prices are on a downward spiral, as interest rates edge closer to the 4 percent mark.

And while the nation’s most expensive cities of Sydney, Melbourne and Canberra have experienced drops in values – Sydney is down 10.8 percent since February 2022 – it’s not the same story across the country, said Ray White chief economist Nerida Conisbee.

“Some markets are less sensitive to interest rates. Sydney, Melbourne and Canberra are our most expensive cities and as a result are far more sensitive to the cost of debt,” she said. “Sydney house prices have now fallen by 10.8 per cent from their peak in February 2022. Compare that with Adelaide where the median is half that of Sydney – prices are down only 1.8 percent from the peak.”

It’s a similar result in the resource capitals of Perth and Darwin.

Research by Ray White reveals that some city and regional areas are continuing to increase in value, although it’s very much on a case-by-case basis. Potential regional property investors would do well to tread carefully before purchase.

Parts of Adelaide such as Playford, the Adelaide Hills and Salisbury have seen steady increases in house values over the past year, while in Brisbane, more affordable suburbs such as the Ipswich Hinterland, Beaudesert, Beenleigh and the Caboolture Hinterland have performed well.

The Queensland regional centre of Bundaberg experienced the highest regional growth in house values during the 12 months to January 2023, with median values up from $394,436 to $422,559, or $28,123. Other parts of Queensland, including Cairns north, the Whitsundays and Maryborough also saw values go up.

Some regions of South Australia proved more resilient as well, with house values increasing on the Limestone Coast, in the Murray and Mallee and Kangaroo Island. The Upper Hunter saw the strongest growth in NSW regional house prices, up from $414,034 to $437,108.

“At a small area level, the difference between what’s happening is even more stark,” Ms Conisbee said. “The capital city areas still recording year-on-year increases are all relatively affordable suburbs in Brisbane and Adelaide. Both of these cities recorded net interstate migration during the pandemic. Most people that moved during this time initially rented and a shift from renter to buyer is likely to be in part driving price growth. 

“At a regional level, the areas seeing growth tend to be more affordable holiday destinations, as well as towns that are benefiting from strong agricultural and mining conditions.”