Period enthusiasts are spending big to breathe new life into modest historic homes as part of a wave of inner-city reinvention.
Once bulldozed en masse, a new appreciation of these humble homes and their character charm is driving a revival of the inner-city cottage as a luxe modern residence.
Once built for the working class, inner city cottages are now in high demand as a luxury home. Picture: realestate.com.au
From workers cottages to Californian bungalows, these homes are increasingly being hunted for their charm and reimagined by deep-pocketed buyers.
Raf Merhi, a self-confessed “sucker for old homes”, spent almost $1 million transforming a tired weatherboard bungalow in Melbourne’s north. The year-long project turned what he described as an “ugly duckling” into “probably the best house in the street”.
When the RW Rightway Developments director bought 5 Glencairn Avenue, Coburg in 2025 for $1.25 million, few original features remained. Merhi restored key elements, including timber frames sourced from a home scheduled for demolition, and recreated leadlight details from old photos.
After: 5 Glencairn Avenue, Coburg has been painstakingly restored for modern living
Before: The weatherboard bungalow in 2025
Mr Merhi also handcrafted a new front door frame, installed a timber fence and added tessellated tiles to the entrance, while overhauling the garden.
The renovation came with challenges, including rot, termite damage and strict heritage rules.
Demolition was hardest, involving removal of old timber, a staggering number of nails, and layers of old plaster.
“Taking that off is like pulling out teeth. You have to actually sit there with a chisel, crowbar and shovel, and chip it away like an archeologist," he said.
The home is listed with a price guide of $2.45m - $2.52m. Picture: realestate.com.au
But the effort was worth it, with buyers vying for turn-key homes offering character and a convenient inner city lifestyle.
Inner city cottage glow-up
Michael Roper, a founding director of Architecture architecture, said primarily, buyers covet period homes for their location, which is often in vibrant inner city areas.
But they are keen to work with the existing charm rather than compromise it.
“They often have qualities you do want to hang on to, and bring back to life. It's really just a matter of making sure the roof’s in good enough condition to keep water out, the foundations are good enough to keep the building stable, and the structure in between is strong enough so it will last,” Mr Roper said.
Workers cottages are often located in prime inner city suburbs within easy walk of cafes and shops. Picture: realestate.com.au
Unlike the more middle-class Californian bungalows that came later, Victorian-era cottages, or workers cottages, were built on lean budgets to house workers.
They typically featured narrow, dark entry corridors that led to the living spaces behind. These living areas were often cut off from the backyard as kitchens, laundries and bathrooms were added onto the rear.
Demand is strong for fixer-upper workers cottages like 23 Peterson Street, Woolloongabba, which snapped up at auction last month. Picture: realestate.com.au/sold
While sometimes compromised, these buildings have great features to work with and heritage rules don’t usually pose a huge hurdle to good outcomes, Mr Roper said.
“There's no reason why you shouldn't be able to keep and work with existing heritage fabric”.
This fully renovated cottage at 96 Rosser Street, Balmain is listed with a guide of $3.1 million. Picture: realestate.com.au
Workers cottages are undergoing a wave of dramatic inner-city reinvention, and examples abound showing how these once-humble cramped homes are being refined from their working class roots into classy urban retreats.
In Sydney’s inner west, an upscale cottage at 96 Rosser Street, Balmain - with a $3.1 million guide - has been rebuilt over two levels, using curves and exposed brick to highlight its character.
7 Lott Street, Maryville is on the market for $1.15m - $1.25m. Picture: realestate.com.au
Near Newcastle, a worker’s cottage at 7 Lott St, Maryville has been renovated, retaining timber floors and 10-foot ceilings as a nod to its origins.
In Brisbane, a cottage at 62A Queenstown Avenue, Boondall blends soaring ceilings, intricate fretwork and a classic verandah with modern finishes.
62A Queenstown Avenue, Boondall is attracting families, first-home buyers and investors. Picture: realestate.com.au
As for the more spacious Californian bungalow - a later architectural style that's more common in middle-ring city suburbs - Mr Roper said the main appeal is their layout, which includes interconnected rooms often with large openings between them, creating a balance between separated and open-plan living.
“They're inherently more connected to outdoor space and natural light than, say, a Victorian terrace or typical workers cottage,” Mr Roper said.
Coburg bungalow revival draws in buyers
Originally intended as his own home, Mr Merhi has made the decision to sell his restoration project with the Coburg property now being sold with a guide of $2.45 million - $2.52 million.
The roughly $900,000 renovation spend was driven by passion as much as profit for the builder and designer, who developed his skills from his tender years working alongside his builder father.
The modern extension features curves, smooth lines and contemporary details. Picture: realestate.com.au
Rather than outsourcing, Mr Merhi replicated many features himself, even making an archway on site, using a sheet metal offcut and shaping the detail by hand to maintain character.
“It gives me the ultimate satisfaction to try to save something, and to try to keep it original,” he said.
The home has four bedrooms and two spacious bathrooms. Picture: realestate.com.au
Selling agent Fadi Khoder from Barry Plant expects strong interest.
“There's a lot more detail and technique behind this renovation than most other properties that come on the market.”
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