Keep the lounge away from the wall and it'll look bigger.

Blue gray window frames match the funky roof. The cedar is diametrically opposite on the color wheel as a orange tone. Usually the browner grays (sort of the light shade now on the stucco) do better with cedar to say modern, but since you have the blue gray, allow me to suggest that you just go as dark gray as you can - nearly charcoal on all the weatherboard. If you are in a high heat area (palms might or might not be - that might be the ocean on the horizon which might me an onshore breeze all the time) then you want a white. Not a blue-white but a warm white - bm maritime white is a good choice. With the cedar and the two blue-blue-gray elements, you need neutral without tone.

Thanks for all the great ideas everyone and sorry I didn't explain the polycarbonate a bit better :) This is along the lines of what we'll be using... http://www.psp.co.nz/building-brands/corrugated-sheeting/suntuf-polycarbonate The area is an absolute sun trap and we're hoping to use it as an extension to our living space, especially on rainy days! I've just sent my husband out to get a few pots of different stains for is to try - darkest brown (cedar) and a lighter brown (rustic oak) both by Cabots + the black we already have. Hopefully we can decide between one of those! I probably should have mentioned we will have black aluminium pool fencing running along the top of the second retaining wall - so the real question is do we keep everything black (pool fencing, horizontal fence, retaining walls and pergola) or do we go with a dark (or even light) brown for the pergola and retaining walls.... We just keep going around in circles at the moment. Decisions, decisions! Thanks again :)

The blue is awesome (grey is too trendy)! The reason it stands out to you is perhaps because it's the only real colour there. Bring in the blue in a window treatment, a small appliance that sits on the counter, a pretty tray or area rug. Also, it is more appealing often if there are more than 2 colours - so right now you have a white and blue colour scheme - bring in red or orange or fushia - something from the other side of the spectrum (like you did with the yellow flowers but in a more permanent way)!