A 1950s Auckland bungalow, home for more than 60 years to the man who built it, sold for $830,000 more than its 2014 valuation.

The two-bedroom brick and tile house in Betts Ave in Mt Roskill sold at auction on September 2 for $1.8 million - 86 per cent above its $970,000 CV.

A real estate expert says the price reflects demand for big sections with development potential under the Auckland Council's proposed Unitary Plan.

PM: 'Every chance' of mortgage rates with a three in front of them
Auckland house prices rising $345 a day, says REINZ


Advertised as a "dream come true" for builders and developers, the small house is nestled among primroses, garden gnomes, freesias and fruit trees on a 1409sq m triangle of land at the end of a suburban cul-de-sac.

The sellers were two women who had grown up in the house, estate agent George Imo said.

The listed owners are Sharon Lesley Moore and Robyn Denise Quartly, according to QV.

A bidding war between four would-be buyers at the LJ Hooker Ponsonby office was watched by members of the Mt Roskill community, including worshippers from mosque next to the house.

Mr Imo thought members of the mosque's congregation might have bought the home, but it sold to a Chinese man who lived with his family in a different part of Auckland.

Mr Imo said the man could be looking to develop the property.

He was delighted with the price the house fetched.

Business Editor Liam Dann and Herald senior journalist Jamie Gray on the implications of today's Reserve Bank decision to cut interest rates.

"The CV was about $970,000 so we were looking at selling it for between $1.3 and $1.4 million, but it went way over."


Auctioneer Wayne Espie said the sellers' late father had lived in the house since he built it in 1952. He recently died, aged 92, so his daughters had put it on the market.

Real Estate Institute chief executive Colleen Milne said land use changes in the Auckland Council's Unitary Plan meant many properties had risen in value.