Melbourne-based architecture and interior design firm Studio Esteta has brought heritage regeneration projects that cleverly link two far-flung corners of the world: Australia and Italy. Malvern East House was designed for a young family who loves to travel, it is expressive and personal. The seamless transition between old and new, interior and exterior, resulted in the creation of this spacious, light-filled '2.0' Melbourne house.

Four of the terrace's original rooms have been restored and converted, including a master bedroom and ensuite, a guest bedroom and a study. Then, a wide arch dramatically marks the threshold between the old and new buildings. It frames the views from the main entrance to the corridor to the extension and the exterior.

Crossing the threshold brings you to the bottom of a stairwell covered in vines. The stairwell, with its solid structure and grand scale, reinforces the invisible boundary between the old and the new. Voids and skylights at the top form a re-connection with the exterior that might otherwise be overshadowed by the presence of stairwells. To the same extent, the kitchen, dining room and living room are oriented towards the garden to encourage synergy between people and place.

The palette of Malvern East Terrace House is intentional, with earthy finishes and traditional methods inspired by southern Italy. Cave stones, warm wood, handmade bricks and smooth tiles work together to create a quality of "refinement, sophistication and simplicity". Special mention should be made of the handmade brick, which is conveyed effortlessly from the interior to the exterior. In addition to the house's theme of earthy hues, there are more experimental hues such as gold, olive and naked pink.

Studio Esteta has thoughtfully incorporated sustainable design practices into Malvern East House, where Windows and skylights allow natural ventilation; Energy efficiency requirements are addressed wherever possible; Natural materials guide each space. Perhaps most importantly, the house is heavily sourced from local Australian materials and finishes.