Grey Lynn 'hovel' fails to sell despite $2.5m bid

A dilapidated Auckland hovel that underwent a dramatic transformation has failed to sell at auction despite a $2.5 million bid.

Only one bid was placed on the 120-year-old settler's cottage at 2 Leighton St, Grey Lynn last night, but it came in under reserve.

The bidders are now in negotiation with the vendors.

Barfoot and Thompson agent Matt O'Brien said it wasn't unusual for high-priced properties not to sell at auction.

"It's not surprising that it hasn't sold. A lot of properties that are above the $2.5 million mark are sold in private. Buyers prefer to have some privacy. This property has had a lot of media coverage so it's especially not surprising in this case."

The interior has been designed to cater for modern living. Photo / Dean Purcell

About 80 people gathered at the property for the auction.

A man who was with a woman and baby placed a bid. No further bids were made.

A range of people were at the auction, including young families, and middle-aged and older couples.

Several people returned to neighbouring properties after the auction.

"I think a lot of people just came along to look at the property because they've read about," Mr O'Brien said.

"It's possible we'll settle the sale tonight but there's no rush."

The property was described at the auction as a "very Ponsonby home" with all-day sun and great entertaining areas.