Buyers are willing to spend big to secure a coveted lifestyle as a recent inner-city auction revealed.

An original three-bedroom house at 44 Christmas Street, Northcote, sold for $1.501 million in a three-way contest. This was more than $300,000 above the seller’s reserve.

“We had a good campaign with 40-plus groups at inspections and expected maybe a $1.3 million result with competition,” Barry Plant Preston director Loretta Khoo said.

“Three of the five registered buyers made bids and all were planning to renovate the home.”

The auction went “crazy” and the amazing result showed buyers still had good budgets and were willing to pay good money for a desirable lifestyle, Ms Khoo added.

The house, which was purchased by the sellers in the 1970s, is on a good-sized block of 463sq m in a sought-after location close to shops, transport and parks.

“In 2023, the nearby Northcote Aquatic Centre will reopen and this will be a drawcard for families as well,” Ms Khoo said.

“Homes on nice blocks in good locations attract buyers seeking a particular area to live in.”

The November 5 auction resulted in a bidding war between two buyers from Heidelberg and Ivanhoe, and bids were down to $500 increments towards the end.

The property, which features a bathroom and a single garage, retains period details but will be extensively renovated to create a family home.

It also has a formal lounge room, kitchen with a meals area, sizeable bedrooms fitted with built-in robes, a brick mantle with a heater, and a spacious backyard.

The property is near several schools, including Wales Street Primary, Holy Spirit Primary, Santa Maria College, while Northcote Plaza and Northcote Central are within easy access.

Agency director Jim Dimitropoulos noted that renovated family homes were the most sought-after property type in the market currently.

“Our Northcote and Thornbury auctions have been very successful, with four to six buyers registering at each auction,” he said.

“And in most cases, they achieve results above the reserve prices.”

He noted as both suburbs were close to the CBD, they offered a coveted lifestyle with amenities and cafes.

“There is strong demand but the supply is tight,” Mr Dimitropoulos added.