WE OFTEN see properties sell for tens of thousands of dollars more than the reserve price — but what about $1 million more than expected?

It’s happened in suburban Burwood East, with a plain brick veneer home with only one bathroom selling for $2.38 million — a staggering $1 million more than its State Trustees valuation.

In June, the State Trustees valued the 1455sq m property at 46 Ruby St at $1.3 million. The three-bedroom house had been in the same family for many years.

But a 150-strong crowd saw the July 19 auction race past that mark in just the first few bids.

Harcourts Judd White agent Dexter Prack said all were “past stunned” at the fast pace of the auction and the spirited bidding from seven parties.

In the end, first-time developers secured the two-titles property.

Parties interested in building a church and developers looking to build six townhouses were among the bidders. Mr Prack said the high price showed that developers were prepared to have a “red-hot go” at the local market.

“This was a huge price for Burwood East and a record for the area,” he said.

“The mixed zone was obviously a big drawcard.”

Mixed-use zones allow a range of residential, commercial, industrial and other uses.

Mr Prack said the sale price worked out to about $1630 a square metre, significantly more than the Burwood East average of about $900 to $1000.