A Labour MP has outbid two parties to snare a stunning period home in Preston.

Preston MP Nathan Lambert was among three bidders who competed for 1 Edith Street on March 4, according to Barry Plant Inner North Group partner Alexander Magliolo.

“Mr Lambert and the underbidder eventually went head-to-head in the battle for the home,” he said.

The $1.45 million seller’s reserve price for the four-bedroom California bungalow was smashed when the property sold under the hammer for $1.5 million.

Lambert loved the home’s location and its period style, Mr Magliolo said.

“It is the perfect blend of old-world charm and a quality renovation,” he said.

“Near the iconic Preston Market and train station, it’s in the heart of the suburb.”

The sellers were an older couple who had lived at the property for 23 years and were downsizing, he added.

The enchanting double-fronted house displays decorative ceilings, hardwood floors, ornate open fireplaces and a leadlight entrance.

It has all the modern comforts and conveniences plus a relaxed outdoor entertainment zone, an office or study, and a teenager’s retreat.

The Preston property market was buoyant with multiple bidders at auctions, according to Mr Magliolo.

“Due to the high demand for move-in ready homes in good locations, sellers are getting great results,” he said.

“The quality of buyers has improved, with those upsizing or downsizing motivated to move.”

Drawn to prospects of future growth in the suburb, developers and investors were also active, he added.

Two investors competed for a three-bedroom house on 586sq m at 58 Wood Street, which sold $105,000 above the seller’s reserve for $905,000 on February 25.

“The buyer owns a business virtually across the road in Northland shopping centre,” Mr Magliolo said.

“He plans to rent out the house to his employees and may develop the property down the track.”

The property’s potential and location in a growth zone near Preston North East Primary School attracted about 35 groups during the campaign, Mr Magliolo said.

In a pre-auction sale, a young couple from Mont Albert North splashed $908,000 on a three-bedroom double-fronted California bungalow at 26 Highview Road - a price well above expectations.

The pair plans to redevelop the property to accommodate townhouses, according to Mr Magliolo.

Listed for the first time since 1970, the home was cherished by the same family for more than 50 years.

Despite needing work, the property attracted multiple offers, Mr Magliolo said.

“The sellers accepted the buyers’ offer not only because it was the highest price, it was the shortest settlement period,” he added.