WATERFRONT ICON RETURNS TO MARKET

Anyone familiar with Port Phillip Bay knows the eclectic mix of prime properties along the popular waterfront strip of Beaconsfield Parade. Now one of the coveted residences has come to market for the first time in more than 20 years.

Carnane is an address with the best of both worlds – art deco charm blended with contemporary sophistication.

Originally built around 1915 as four smaller flats, the property has been transformed behind its period facade to reveal a modern designer interior crafted for family living.

Reimagined by Buro Architects and interiors, the five-bedroom, four-bathroom house was shortlisted back in 2008 for an Australian Interior Design Award and subsequently appeared in multiple design magazines.

Last sold in 2005 for $2.32 million, Carnane is now listed with a price guide of $14 million to $15 million. The expressions of interest campaign, via Ben Manolitsas, Melissa Turner, and Thomas Wilson of Marshall White Port Phillip, closes on April 9.

What anchors the historic bayside home in the 21st century is the moody, cantilevered steel staircase set just inside the entry foyer. Sculptural in every sense of the word, the “floating” stairs make a bold statement at first sight and even discreetly conceal a refrigerated wine cellar and bar.

The long 580 sq m footprint and three-story layout allow for a convenient separation between entertainment and accommodation zones. In the shell of the original Art Deco facade, there are two sitting areas framed by deep bay windows.

Beyond the iconic stairs, a gallery walkway leads through to the dining room and show-stopping kitchen. A design statement in itself, the sleek black kitchen has Gaggenau appliances, hidden storage, a grand island bench, a casual meals area, and a vast butler’s pantry with a second entry to cater for any sized soirée.

This ground level has marble floors, Venetian-plastered walls, and full-height glazing, as well as the mammoth rear extension. The stylish addition dishes up another large living room, warmed by an ethanol fireplace, and enormous timber-framed sliding doors that open onto the private north-facing pool deck and lush landscaped gardens.

An internal courtyard offers homeowners a bonus green space, separating the formal and informal dining zones.

Upstairs, there is yet another living area and an adjoining study that mirror the bay windows below and capture sweeping views of the bay. There are two bedrooms with built-ins sharing a palatial family bathroom, as well as the main bedroom with a walk-in Polyform wardrobe, extra built-ins, motorised blinds, and an ensuite with a shower.

One more floor up, a top-level guest or teenager retreat with a bathroom, kitchenette, living area, and a huge water-facing terrace. Additionally, the triple garage, accessed via Ashworth St, has its own fully independent studio.

The Beaconsfield Pde home also has spotted gum floors, a video intercom, an alarm, an integrated sound system, abundant storage, and zoned heating and cooling, all within walking distance of Middle Park village, Albert Park Lake, and city-bound transport.

Carnane at 245 Beaconsfield Pde, Middle Park is listed with a price guide of $14 million to $15 million through Marshall White Port Phillip via an expressions of interest campaign closing on April 9.

By any traditional measure, Australia’s property market should be moving in sync. Instead, it is fragmenting.

New research from MaxCap, led by Head of Research Bruce Wan, paints a picture of a market no longer defined by national trends, but by sharp regional divergence, where performance gaps between cities are widening, and the smartest capital is moving accordingly.

At the top end of the ladder, Perth and southeast Queensland are surging ahead. At the other, Melbourne and Auckland are only just beginning to recover from recent downturns. And sitting squarely in the middle is Sydney, steady but constrained.

The takeaway is clear: the era of relying on headline markets is over.

The rise of the unexpected leaders

Brisbane and the broader southeast Queensland region have emerged as standout performers, driven by population growth, infrastructure investment and a sustained undersupply of housing.

According to the report, housing values in the region have continued to accelerate, supported by long-term tailwinds including the 2032 Olympic Games and a decade of relatively subdued price growth prior.

Perth is telling a similar story, albeit for different reasons. Once heavily tied to commodity cycles, the Western Australian capital is now benefiting from a broader base of economic drivers, including defence spending and sustained resource sector strength.

The result is a housing market that remains one of the strongest in the country, even as price growth begins to ease from its peak.

Sydney holds, but doesn’t lead

For Sydney, the story is more nuanced.

While prices continue to climb and the city remains Australia’s most expensive market, affordability constraints are clearly limiting its pace. Residential growth, while positive, lags behind smaller capitals, and commercial sectors are being held back by softer demand in key industries.

There are, however, signs of momentum building. New infrastructure, including the western Sydney Airport and expanded rail networks, is expected to unlock development opportunities and support future growth, particularly in emerging precincts.

Still, the report positions Sydney firmly in the “middle of the pack”, no longer the automatic frontrunner for investors.

Melbourne’s slow reset

Melbourne, once a consistent performer, has spent recent years recalibrating.

Extended lockdowns, combined with new state property taxes, have weighed heavily on investor sentiment and pricing, particularly across the commercial office sector. Residential values have also underperformed, though for different structural reasons.

Now, there are early signs of recovery.

Improved affordability, population growth and a stabilising economic backdrop are beginning to draw buyers back into the market, with both residential and commercial sectors showing tentative signs of improvement.

Auckland’s turning point

Across the Tasman, Auckland has faced its own challenges, particularly from an outflow of younger workers to Australia, which has dampened demand and stalled price growth.

But here too, the tide appears to be shifting.

A return to positive migration, lower interest rates and policy changes — including the easing of foreign buyer restrictions — are expected to support a gradual recovery, alongside renewed interest from offshore capital.

A market that rewards precision

If there is one unifying theme, it is this: broad-brush strategies no longer work.

MaxCap’s research highlights that the most compelling opportunities are increasingly found outside the traditional powerhouses of Sydney and Melbourne, requiring investors to take a more targeted, locally informed approach.

“Given these persistent performance gaps, there is plentiful scope for alpha returns, just by picking the right locations and market segments,” the report notes.

In other words, success in this market is no longer about being in property — it is about being in the right property, in the right place, at the right time.

And increasingly, that place may not be where you expect.

WATERFRONT ICON RETURNS TO MARKET

A landmark Beaconsfield Parade residence blending heritage elegance with bold contemporary design has listed for the first time in more than two decades, with price hopes of $14 million to $15 million.

New research shows a widening divide across Australia and New Zealand’s property markets, with investors increasingly forced to look beyond traditional strongholds to find real returns.