A two bedroom, one bathroom clifftop home in Malua Bay sold at auction for almost $500,000 above it's reserve, after the hammer dropped at an incredible $1.4 million.
It was understood to be a record sale for a property of its size in the area in the last 12 months.
Around 50 people gathered on Saturday afternoon to see who would become the newest owners of the property with clifftop views of Pretty Point, a large front deck and cosy interiors.
Despite a slow start to the auction, things picked up as the bidding reached $950,000 and the property was declared on the market.
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LJ Hooker agent Rob Routledge said he was surprised by the high bid for the property, but it showed the current climate of the South Coast property market.
"I knew this was a special property with stunning views and potential to add more rooms underneath as needed, but I was expecting around the $1.2 million mark so this is a fantastic result for the vendor," Mr Routledge said.
"It shows how the market is going at the moment, it certainly doesn't seem to be slowing down."
The property was built in 1997 by John Aust, a well-known builder in the Batemans Bay area, and was owned by a Canberra couple who used it as a holiday home for the past 23 years.
The new owners, who wanted to remain anonymous, were also from Canberra and said the home would be used for their own family holidays.
"We're not locals, but we've had property down here for the last 20 years and we're very happy with this place, it's beautiful," they said.
"We're looking forward to making a lot of good memories and spending a bit of time down here with our two sons and grandchildren."
Two years ago the vendors considered putting the property on the market and expected it to go for around $850,000, but decided against the sale in favour of a few more years of coastal holidays.
"We're going to be moving into a retirement village in Canberra so it was time to sell this place to be able to do that," the vendor said.
"We've made many happy memories in this house. Batemans Bay is a magnificent place and we've been so happy here.
"We're very pleased with the LJ Hooker team in this selling process, they've done a great job."