There are many references to this business and within the various articles, including the original registration, there is inconsistency in the street address. Variably showing either number 217, or 317, and a spelling variation of Rae, or Ray, Street North Fitzroy. Ray street does not exist and the number 317 features frequently in later advertising for staff and other matters. So the address we are using is 317 Rae Street North Fitzroy.
The premises were always commercial in nature, at least as far as the early 20th century is concerned.
The Novelty Toy Works was established at the address in 1916 and departed in 1924 or 1925 depending on when the final liquidation of the business occurred. While the building was leased to the business, it is not clear on ownership of the building.
The Melbourne Herald newspaper dated Monday 27th November 1916 included an article entitled Coal Crisis, which stated that the factory at 317 Ray street was impacted and closed as a result. The Coal Crisis related to the war effort and businesses that were non-essential. This was in November of 1916 less than 6 months after the business was registered which would have been detrimental to their efforts. The street name should have been spelt Rae.
A little side note is that the offices of The Novelty Toy Works was used for an armed forces recruitment drive in April 1918 only 7 months before the war ended.
By 1934 there were changes at 317 Rae Street which is noted in a tender being let for the Erection of a New Warehouse.
See https://trove.nla.gov.au/newspaper/article/222913649 where the tender is to builders Scott and Sorrell who are later declared as insolvent. Perhaps before completing the new warehouse? In any case, Novelty toy Works had been closed by that time.