Lo-Yuan is significant to Victoria as a well-preserved and successfully designed Arts and Crafts style residence of the mid-1920s, created by the noted architectural firm, A & K Henderson, Alsop and Martin for the Rev. Thomas Howard-Smith, a missionary who had worked in China. Because of the high integrity of the house, its style and the documentation surrounding its early ownership, it is possible to interpret the site historically, in particular the Rev. Smith's interest in the Far East.
Lo-Yuan is a faithful expression of the life of an important Victorian missionary, the Rev. Howard-Smith, and is rare as an intact Arts & Crafts Bungalow, with eastern styling.
Lo-Yuan and its garden setting are also important to the Cardinia Shire as a notable example of one of the district's residential retreats and adds greatly to the variety of housing and gardens in the district. This place is also significant for its comparative age, judged within the shire's major development eras (post First War).