RARE DIAMOND BAY FRONT-ROW HOME HITS MARKET

Considered one of Sydney’s coastal gems, Vaucluse is famous for its multimillion-dollar water views. Only a handful of homes, however, have the luxury of an uninterrupted panorama over Diamond Bay Reserve looking directly out to the Pacific Ocean horizon.

The dramatic cliff-top park is a sought-after neighbour and a popular spot among locals, thanks to its breathtaking boardwalk that snakes through the exclusive suburb.

Once home to a dairy depot, the green space was formerly frequented by horse-drawn carts rather than today’s SUVs. It was gazetted to be a public space by the mid-1800s.

Craig Ave is a rare slice of Eastern Suburbs real estate bordering the elevated Diamond Bay parkland, where just half a dozen residences can claim that never-to-be-built-out front row position.

Back in 2015, the original bungalow at number five was replaced with a contemporary pair of residences, allowing for a duo of homeowners to lay claim to the enviable outlook.

Now one of the modern parkside duplexes is back on the market with Alan Fettes and Jack Smith of Ray White Double Bay. Prior to its scheduled March 19 auction, the four-bedroom house has a price guide of $7.25 million to $7.5 million.

On the ground floor, the three-storey property is freestanding to the north and has a spacious, free-flowing living zone that combines a more formal front lounge room with a state-of-the-art gas kitchen featuring induction cooking and a vast eat-at island bench.

A dining area and casual living space spill out via sliding doors to a covered barbecue deck and private lap pool surrounded by established gardens.

Up via an internal lift, the accommodation level houses four bedrooms with built-ins, including two with integrated desks. In the primary suite, there is a palatial ensuite featuring a bidet, bathtub and twin vanities.

This main bedroom also opens onto a full-width balcony, with the ocean outlook primed for picturesque sunrises.

Built with entertaining in mind, the Vaucluse home also has a lower ground-floor breakout space for teenagers or movie nights for the parents. The large rumpus room adjoins a combined bathroom and laundry with loads of additional under-house storage and direct access to the double lockup garage.

Added extras at the Craig Ave home include a fireplace in the family room, tiled living areas, floorboards in the bedrooms, bespoke joinery throughout and ducted air-conditioning.

The Vaucluse duplex is not only sitting opposite a stunning cliff-side reserve, but is within walking distance of Christison Park, Diamond Bay Bowling Club and the Macquarie Lighthouse, with Vaucluse boutiques and eateries just 750 metres away.

Alan Fettes and Jack Smith of Ray White Double Bay will auction 5 Craig Ave, Vaucluse on March 19 at 6pm.

Australia’s major CBD office markets are recording some of their strongest rental growth since the pandemic, with businesses increasingly prioritising premium office space despite elevated geopolitical and economic uncertainty.

Knight Frank’s Australian Office Indicators Q1 2026 report found net effective rents in Sydney and Melbourne CBDs rose at their fastest annual pace since COVID-19, increasing 10.2 per cent and 6.8 per cent respectively over the 12 months to March.

Brisbane posted the strongest growth nationally, with net effective rents climbing 11.7 per cent over the same period.

The report points to a widening divide between prime CBD office towers and secondary office stock, as occupiers increasingly focus on quality, location and workplace amenity when making leasing decisions.

Knight Frank Senior Economist, Research & Consulting Alistair Read said demand remained heavily concentrated in premium assets within core CBD precincts, helping drive stronger rental growth in top-tier buildings.

“Occupier demand continues to be heavily concentrated in the most desirable CBD precincts and the highest-quality buildings, accelerating a sharp divergence between core and non-core markets,” Mr Read said.

According to the report, Sydney’s Core precinct and Melbourne’s Eastern Core significantly outperformed broader CBD markets over the past year.

“In Sydney’s Core precinct and Melbourne’s Eastern Core, net effective rents surged 14.3% and 16.1% over the past year, significantly outperforming the rest-of-CBD precincts,” Mr Read said.

The rental gap between prime and non-prime office locations has also continued to widen sharply.

“As a result, core CBD rents are now 54% higher than non-core locations in Sydney and 93% higher in Melbourne, highlighting the growing premium placed on amenity, accessibility and workplace quality,” he said.

Knight Frank said the strong rental growth across the major CBDs was being underpinned by a limited supply pipeline, with few new office developments expected to be delivered in the near term.

Mr Read said subdued construction activity was likely to support ongoing rental growth and tighter vacancy rates over the medium term, particularly for premium office towers.

“The combination of sustained demand and declining levels of new development will aid ongoing prime rental growth and lower vacancy rates over the medium term, particularly for best-in-class assets,” he said.

The report noted that current economic conditions were making new office developments increasingly difficult to justify financially.

“Economic rents remain well above expected market rents, making the construction of new office towers largely unviable, and concentrating tenant demand into existing buildings,” Mr Read said.

While suburban office markets generally remained subdued compared with CBDs, Melbourne’s Southbank precinct was identified as a relative outperformer, recording annual net effective rental growth of 2.7 per cent.

The report comes as broader Asia-Pacific office markets continue to stabilise following several years of disruption linked to hybrid work trends, inflation and rising interest rates.

Knight Frank’s separate Asia-Pacific Q1 2026 Office Highlights report found Sydney and Brisbane were among the strongest-performing office rental markets in the region, behind only Bengaluru and Tokyo for annual prime net face rental growth.

The Asia-Pacific report also found 18 of the 24 cities monitored across the region recorded stable or increasing rents in the first quarter of 2026, even as geopolitical uncertainty intensified following escalating conflict in the Middle East.

RARE DIAMOND BAY FRONT-ROW HOME HITS MARKET

This Vaucluse duplex is one of only six residences enjoying a never-to-be-built-out position above the Pacific, ahead of its March 19 auction.

Office rents in Sydney, Melbourne and Brisbane are climbing at their fastest pace since the pandemic as tenants compete for premium CBD space amid tightening supply.