Another weekend in Sydney, another round of unbelievable auction results.

A tin shed in Glebe - in Sydney's inner west - sold for A$1.69m (NZD$1.8m) under the hammer on Saturday.

The "unique offering", as it is described on its online listing, originally had a price guide of high A$1.3m to low A$1.4m but was bumped up to A$1.6m after receiving exceptional interest.

Selling agent Nicholas Katsikaros of LJ Hooker Glebe told news.com.au that the property came with Development Approval to be transformed into a two or three-bedroom home with a car space, giving the buyer a rare opportunity for residential develop in the inner city. The warehouse already has two bathrooms.

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Three registered bidders - a homebuyer, builder and developer - turned up to fight it out on Saturday. Surprisingly, it was the homebuyer who ended up placing the winning bid.

Mr Katsikaros explained the purchase as a once in a lifetime opportunity.

"It isn't something you would usually find in Glebe," he told news.com.au.

"It is a rare opportunity in a street tucked away in a cul-de-sac. You could wake up in the morning and wonder where you are before realising you are just off St John's Road."

Mr Katsikaros said prices have increased "phenomenally" over the last two years in inner city suburbs like Glebe.