Jellis Craig listing agent Andrew Turner said the property had attracted a lot of attention,including from overseas. He had sent out hundreds of contracts to interested buyers,but even so,the result surprised him.

“We thought with all the interest,it would have gone above[the price guide],but how far above we actually didn’t know,” he said. “It went well above our expectations.”

Earlier in South Melbourne,a three-bedroom home sold to a family after a short and sharp auction for $2.22 million.

The house at22 Henderson Street sat on a 191-square-metre double-fronted block with a side laneway access.

Whitefox’s Peter Zervas,the selling agent,listed the property with a price guide of $1.75 million to $1.85 million.

Bidding started at the bottom of the range and quickly shot up to $2 million after four bidders competed,making $50,000 offers. The home sold for $350,000 above the reserve.

Zervas said the relatively few properties listed for sale had created an environment that was driving up prices at auction,as frustrated buyers fought over what was available.

“It was one that we knew was going to have strong bidding and that’s what happened,” he said. “With quality real estate,it doesn’t matter what the market’s doing if it’s got the right bones.”

Buyers were attracted to the home because of its north-facing backyard and its relatively large block size,Zervas said.

In Brunswick,a three-bedroom,top-floor apartment sold after another fast-paced auction for $1,055,000 – $25,000 above the reserve.

Unit 401/10 Dods Street was surrounded by private balconies and featured modern and spacious living areas.

Nelson Alexander listing agent and auctioneer Mark Verrocchi said two bidders had competed to buy the home – a downsizer and a first home buyer.

Bidding opened at $970,000,the bottom of the quoted price range,with two bidders competing to take the price to $1.03 million,just below the top of the range of $1.04 million.

The apartment sold to the downsizers looking for a more manageable home.

Verrocchi said the vendors’ styling had made the home easier to sell,and that well-presented homes stood out in the undersupplied market.

“It’s grouse,everything just fit the space,” he said. “There’s a lack of quality stock. I really do think there’s a drastic shortage of property.”

Sellers prepared to take buyers’ reduced borrowing capacities into consideration,especially when pricing their homes,would have the most success in the auction market,Verrocchi said.

“If you’re really realistic,you’re often pleasantly surprised because then you’ve got the whole marketplace chasing you,” he said. “I think buyers are frustrated that there aren’t many properties to look at on a weekend.

“When they do find one,they’re homing in.”

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