A three-bedroom home on Auckland's North Shore has sold for double its council valuation despite a slowdown in the Auckland property market.

The renovated single-level house in Holland Rd, Hillcrest sold at auction for $1.5 million, after it was recently valued by the council at $760,000.

Real estate agent Sam Yeung said he was not surprised by the price tag on the house.

"It's quite a high price, but I believed it could go for $1.5 million," he said.

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The vendors were "very pleased", Yeung said, and the house was bought by Chinese people who currently live in Auckland.

Subdivision is a possibility for the property. Photo / Bayleys
Subdivision is a possibility for the property. Photo / Bayleys

"They haven't decided whether they will move in or just rent it out," Yeung said.

The house was advertised for a week and the auction date brought forward after strong interest from a number of buyers following one open home date Yeung said. There were seven bidders in the auction room last week.

In advertisements for the property the suburb of Hillcrest, which neighbours Birkenhead, Northcote and Glenfield, was described as a "peaceful hot spot".

The outdoor flow was promoted in advertising material for the property. Photo / Bayleys
The outdoor flow was promoted in advertising material for the property. Photo / Bayleys

Recent figures from the Real Institute of New Zealand showed the number of houses sold in Auckland fell 14 per cent to 1,764 in January from the same month a year earlier.

Auckland prices were up 9.1 percent to $720,000 in January from a year earlier.

The Reserve Bank has estimated Auckland has a housing supply shortfall of between 15,000 and 20,000 and needs around 11,000 new consents a year just to match the city's population growth, slightly more than the 9,251 permits issued in calendar 2015.