An untouched Art Deco-era gem held by the same family since 1950 drew competitive bidding at auction in Merewether.
Wilton Lemke Stewart agent Tom Lemke's listing at 61 National Park Street attracted five registered bidders, all eager to secure the 1930s fixer-upper.
Mr Lemke described the three-bedroom, two-bathroom brick-and-tile heritage home as a "blank canvas".
Set on a 544 square metre corner block in a heritage conservation area, original period features of the home included ornate plaster ceilings, brick fireplaces and leadlight doors and windows.
The listing drew a high level of interest during the auction campaign.
"It had the same owner since 1950," Mr Lemke said.
"We had 125 inquiries on the property and 85 groups through the open homes, which is double what we usually see."
Listed with an auction guide of $1.6 million to $1.7 million, the bidding commenced at $850,000.
All five registered parties participated in the auction which carried out across 39 bids.
"It went from $850,000 to $1.2 million and went up in increments of $50,000 and we reached $1.65 million and it stalled," the agent said.
"It then went to $1.7 million and that's when the other three dropped out and we had the two remaining bidders going back and forth."
A final increment of $5000 sealed the deal, with the property sold for $1.867 million to a builder who plans to renovate the property to live in.
"It is in a conservation zone, so the buyer would have to maintain the facade and add a modern extension on the back," he said.
"We had a mix of buyers looking at it, so families wanting to move into the area but the key point with this property was the price point and being a blank canvas.
"You could spend early two [$2 million] and get something like this that is renovated but it might have been done 30 years ago so you want to rip it out and start again, but this one was totally original."
Similar homes in the surrounding area that have been renovated fetch upwards of $3 million and $4 million.
"It would probably need around $1 million to $1.5 million in renovations, but looking at other sales of renovated homes in the area, it is worth the effort," he said.
It was one of 14 auctions across Newcastle and Lake Macquarie in the week ending August 25.
According to CoreLogic's preliminary results, the region recorded an auction clearance rate of 83.3 per cent.
