CASTLE-LIKE PADDINGTON RENOVATION SET TO SMASH SUBURB RECORD
Once a pub, now a palatial home, Paddington’s Windsor Castle is hitting the market with a $25m price guide.
2 min
Windsor Castle in Paddington may be of a very different calibre of real estate than the prestigious pile of the same name in England. Still, the former Sydney pub is nonetheless impressive in its own right.
Once a popular watering hole known as the Windsor Castle Hotel, the landmark corner building was transformed 13 years ago into a luxury five-bedroom residence with a $25 million price tag.
If the converted bar achieves its expected price point, it would break the Paddington price record, which currently stands at $20 million. That benchmark was set in 2023 with the sale of a penthouse crowning the residential apartments at the historic Royal Hospital for Women site on nearby Flinton Street.
This time around, the house is due to go under the hammer on October 11 through Luke Hogan and William Manning of McGrath Double Bay.
Built in the 1870s, the Victorian structure with a charming castellated roofline was one of Sydney’s premier hotels in its heyday, affectionately called The Castle.
Anita Nolan and former Goldman Sachs executive David Nolan bought the home in 2016 for $11.85 million, after the initial transformation by XPACE Design Group.
Before that, it traded in 2009 for $4.3 million when the hotel was sold by hotelier Marcus Levy, his wife Vanessa Sanchez-Levy and her brother, developer Chris Sanchez.
The couple of empty nesters are now looking to downsize.
Since purchasing the property nine years ago, the pair have made additional improvements, installing a grand 187-inch CinemaScope screen, Barco projection and 10 electric leather recliners in the home cinema, a 1700-bottle wine cellar, as well as a marble and white dolomite kitchen with a large butler’s pantry.
The state-of-the-art kitchen has a Sub-Zero fridge and freezer, an integrated wine fridge, two Miele dishwashers, a V-Zug induction cooktop, and Gaggenau self-cleaning steam ovens.
On a 770sq m block on leafy Windsor St, the unique house has 1000sq m of internal and outdoor living space. It features a four-person lift to four levels, plus a spiral staircase up to a private rooftop terrace with panoramic views to the CBD and Harbour Bridge.
Other alfresco areas include the north-facing ground floor courtyard with a heated pool and barbecue area. This secluded outdoor space flows seamlessly from the kitchen and dining zones, for all-weather entertaining.
Created as a personal retreat on the second floor, the main bedroom features a vast, hotel-inspired en-suite, a dressing room, a private sitting room, and a large terrace. On the first floor, there are three more bedrooms, a home office and a library. Each of the three bedrooms has a limestone ensuite, Juliette balcony and built-ins.
Down on the lower ground level, there is a rare five-car garage with a turntable beside the wine cellar and cinema, and the house features smart home automation throughout.
A castle without a rolling estate to maintain, this Paddington property is within walking distance of inner Sydney’s most popular eateries, boutiques along Oxford St and Centennial Park.
Windsor Castle is set to go to auction on October 11, at 12.34 pm with Luke Hogan and William Manning of McGrath Double Bay, with a price guide $25 million.
Automobili Lamborghini and Babolat have expanded their collaboration with five new colourways for the ultra-exclusive BL.001 racket, limited to just 50 pieces worldwide.
As housing drives wealth and policy debate, the real risk is an economy hooked on growth without productivity to sustain it.
Strong consumer spending and tight supply have driven retail to the top of commercial property, but signs of pressure are starting to emerge.
2 min
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.
As housing drives wealth and policy debate, the real risk is an economy hooked on growth without productivity to sustain it.
On October 2, acclaimed chef Dan Arnold will host an exclusive evening, unveiling a Michelin-inspired menu in a rare masterclass of food, storytelling and flavour.
