900 per cent return on Sydney house

The Sydney house sold at auction for A$4.6 million ($4.9m), an almost 10-fold increase on the purchase price.

Auckland house prices are running hot but in parts of Australia's biggest city the market is something else.

Doctors Andrew Hardy and Alex Bereny bagged a 900 per cent return after offloading their property in Sydney's Double Bay, which housed their medical practice, on Monday.

They bought the five-bedroom house in 2004 for A$475,000, the Australian Financial Review reported.

It sold at auction for A$4.6 million ($4.9m), an almost 10-fold increase on the purchase price.

The AFR reports that the final price for the 582 sq m property, which was purchased by a private investor, came in well above the price guide of A$3.8m to A$4.1m.

As of mid-September, Sydney house values had risen 5.3 per cent quarter-on-quarter, according to CoreLogic figures.

Property prices in Australia's biggest city have been gathering steam this year - thanks to low interest rates and a resurgence of investors - after a cooling off in late 2015 and early 2016.

The median house value in Sydney briefly dropped below A$1 million earlier this year, but it was back above that level in the June quarter.

The average Auckland house price broke through the $1 million mark in August.