Former PM’s seaside residence passed in at auction after promised federal funding falls over

The seaside home of Australia’s second prime minister, Alfred Deakin, has passed in at auction after a plan to put the historic property in public hands was derailed when the federal government declined to contribute funding this week.

The 1.6-hectare property in Point Lonsdale – known as Ballara – was up for sale on Saturday for the first time since it was built in 1907, after Deakin’s descendants moved to offload it two years ago.

However, some of Deakin’s extended family want to preserve the heritage property for the public and lobbied the federal government to help “Save Ballara” as a historic site.

Tom Harley, one of Deakin’s great-grandsons, planned to buy the home via a legal entity that would allow Deakin University to manage the estate, but he said the Commonwealth this week withdrew funding.

“It’s just outrageous, frankly,” he said of the decision, arguing Ballara was worth preserving like other former prime ministerial residences the Commonwealth had helped purchase, such as Bob Hawke’s childhood home in South Australia.

Harley worried a developer would swoop in and buy the home on Saturday before he could raise further funds, but this did not eventuate.

Hundreds gathered at the heritage homestead for the 1pm auction, yet auctioneer Nick Myers was met with silence when he opened the bidding.

He suggested a starting bid of $4.7 million before a vendor bid of $5.2 million was made, but ultimately no one put their hand up and the home was passed in.

Harley said he was relieved the home wasn’t lost to a developer, but was still disappointed its future wasn’t resolved after the Commonwealth pulled out at short notice earlier this week.

“There are discussions ongoing with a number of parties that are amenable to preserving it to the public,” Harley said after the auction. “But it’s going to be very complicated and take a couple of weeks.”

Deakin built Ballara as a sanctuary from the stresses of public life, and cultivated a native garden together with his wife, Pattie.

The house then served as a holiday home for generations of Deakin’s descendants, but still contains original furniture, photographs, artwork and historic documents.

Deakin, a lawyer and Age journalist, was a founding father of Federation and prime minister three times between 1903 and 1910. As the nation’s first attorney-general, he was also the chief architect of Australia’s White Australia Policy.

In 2024, The Age revealed Deakin family members were divided over what to do with his old retreat.

Some wanted to sell it on the private market, while others, including Harley, wanted the house and grounds preserved for public use.

The matter was taken to the Victorian Civil and Administrative Tribunal, and in March the family agreed to delay the sale so they could try to put the property into public hands.

Former Liberal prime minister Malcolm Turnbull and ex-Labor premier Steve Bracks were among those who signed a letter to the federal government supporting the Save Ballara campaign.

Other signatories included former Labor minister Barry Jones, ex-foreign minister Julie Bishop and La Trobe University emeritus professor Judith Brett, whose 2017 book on Deakin won Australia’s top biography award.

Harley had sought to raise $8.2 million to fund the property’s acquisition. Under his proposal, Deakin University would manage the estate.

During the week, Harley did not disclose how much money he had raised but insisted the proposal had public backing.

“The campaign has gained a great deal of support from the community both locally and nationally and from relevant government institutions,” he said.

The statement of information from Elders Real Estate said the indicative selling price of Ballara was between $5.2 million and $5.7 million.

Arts Minister Tony Burke’s office did not respond to enquiries on Saturday, but the federal government confirmed earlier this week it was aware of the sale.

The Borough of Queenscliffe had pledged $300,000 towards Harley’s project.

Mayor Donnie Grigau said putting the property into public hands would help protect its heritage value, mature gardens and neighbourhood character.

The site’s future, he said, would depend on planning controls and heritage overlays if it were sold privately. Subdivision was not automatic and would require formal planning approval, Grigau said.

A spokeswoman for Deakin University said the institute had consistently indicated its willingness to help preserve the site for the nation.

“Deakin continues to support efforts to achieve the best outcome for Ballara and the community,” she said.

Elders Real Estate rural and lifestyle sales manager Peter Linderman said the listing of Ballara, which is one street from Point Lonsdale’s beach and shops, was exceptionally rare.

It has remained in the Deakin family for 117 years.

“To own Ballara is to become a custodian of a story woven into the very fabric of our nation,” said Lindeman, who did not respond to requests for comment after the auction.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.