86 Kay Street, Carlton, Vic 3053

This quaint lace-trimmed worker's cottage has been spectacularly transformed by Jack Fugaro of Studio F Design into a clean-edged residence for today's living - here is Melbourne urban design at its understated best. All that remains of the original house are two bedrooms opening from an arched timber-floored hallway. The simple design elements of the nineteenth-century dwelling are complemented by the minimalist style of Fugaro's multi-level extension, where high ceilings, large areas of glass and a white-on-white palette enhance light and space. A 4-metre tall horizontally hinged wall, custom built and electrically driven, folds up to link the entertaining zone with the north-facing courtyard. To one end is an elegant kitchen, with generous storage space, stone benchtops, quality appliances and a concealed laundry.

A mezzanine level, overlooking the living area, opens to a smart stone-floored guest bathroom. The tranquil main bedroom/retreat, with a glass-walled balcony offering superb treetop views over Carlton and Clifton Hill, occupies a floor of its own. The greatest surprise of this ingeniously configured house is the large main bathroom, which nestles behind a curved wall above the bedroom - with a slanted window wall giving a great view of the entire CBD, it incorporates a separate bath and shower, premium fittings and ample storage.

Designed for a low-maintenance lifestyle, this distinctive Carlton residence features reverse-cycle air conditioning, ducted heating, smart wiring, terrazzo floors and quality carpets. Tree-lined Kay Street offers quiet living midway between Rathdowne Village and Lygon Street, close to public transport and Melbourne University.