 The place is important in demonstrating aesthetic characteristics and/or a high degree of creative or technical achievement in New South Wales.Challoner Cottage is of local aesthetic significance for its demonstration of a modernist architectural design approach to the accommodation of institutionalised children in the mid twentieth century, in contrast to the older and more "homey" cottage style accommodation used in adjacent buildings at the former Mittagong Farm Home.Because of its size and unusual architectural style, the building and its landscaped setting has landmark qualities.