Fire-gutted villa in Auckland's Grey Lynn sells at auction for more than $1.55m

This fire-damaged Grey Lynn home just sold for more than $1.55m. Photo / Supplied

A fire-gutted Grey Lynn villa has sold at auction for more than $1.55 million dollars to an Auckland family that plans to make it their home.

Flames had ripped through the 1900s classic earlier this year, completely destroying the back of the house at 3 Farrar Street.

LJ Hooker real estate agent Steven Glucina said the damage was beyond the family's resources to repair and so the decision was made to sell.

He said there were eight bidders at last night's auction in Ponsonby - which closed to a bid that was between $1.55m and $1.6m.

Glucina said he'd be in a better position to disclose the exact figures today once the paperwork had been finalised.

The average property value in Grey Lynn is $1,301,150 according to QV e-valuer data.

A dilapidated villa at nearby 2 Leighton St sold for just over $1m two years ago. It was rebuilt and had a two-level extension added at the back and sold in late March for $2,875,000.

The agent said it was an emotional time for Hoeft family, who'd called it home for more than half a century.

"It's a lot to let 62 years go. There's a lot of emotional attachment," he said. "But they are moving on. The main thing is everyone got out and no lives were lost which everyone is very thankful for."

"Now there's another young family who are coming in and will hopefully spend many, many happy years there."

He said the family that bought the house was local to GreyLynn and planned to restore and move into the 4-bedroom character villa.

Glucina said it showed there was still strong interest in the property market, "irrespective of its condition".

At the time of the fire that gutted the property in February this year, the family had a lucky escape, with no injuries, from the blaze at one in the morning.

However, a firefighter was injured when he fell through some of the stairs on the property.