A humble 80sq m cottage has sold for $1.72 million - more than $700,000 over its current council valuation.
The two-bedroom waterfront home in Mangere Bridge, Auckland, sold at a heated auction attended by 200 people and is seen as further evidence of a once-affordable suburb becoming increasingly out of reach.
Bids on the character cottage, which sits on a 1022sq m section on Kiwi Esplanade, jumped in $50,000 increments.
"It was an amazing result but that is what houses are going for in the area now," said Mangere Bridge Realty agent Karen Grant-Mckenzie.
"We have a lot of people coming from areas like Mt Eden because they want a quiet life-style without traffic lights and congestion."
Grant-Mckenzie said values in the area had skyrocketed in the past five years with bigger homes along Kiwi Esplanade selling for well over $2 million.
QV figures show Mangere Bridge had one of the biggest value increases of any suburbs across Auckland.
Values had increased a staggering 93 per cent since 2007 when the average price was $455,700. The median is $889,800.
James Wilson from QV said the area was sought after for its water views and good access to the city and airport.
The new owner is a local woman who bought the house with her adult son.
She lives nearby and will sell her current home to pay for the cottage.
She was happy with the price and loved the feel of the house and land.
"It's an amazing suburb and I feel very lucky to live here," she said.
"It seems like $1.7 million is a lot but that would buy you a small house on a half site in Mt Eden and this has privacy and great views."
The house, built in 1939, was altered for the previous owner who is in a wheelchair. It last sold in 1989 for $135,000.
Meanwhile, a house in Auckland's most expensive suburb has sold for more than $1 million over its CV.
The restored villa at 44 Ardmore Rd, Herne Bay, sold for $2,750,000 - $1,010,000 over its CV of $1.74 million.
The house last sold in 2015 for $2,150,000 - which means a gain of $600,000 in 11 months.