"The result is a credit to Kiwi DIY and entrepreneurship."
But he also said the sale price underpinned the value of Sandringham as an up-and-coming suburb with a strong sense of community and good school zones.
The developer does not want to disclose how much the cost of the refit would have chewed into his profit, but Mr Sissons said consideration had to be made for extensive renovations.
Bayleys sold a 93-year-old bungalow towards the southern end of the suburb, near the Mt Albert Rd ridge, at auction last week for an even higher $1.71m.
Agent Damon Elia, who handled both sales, said he believed the price for the five-bedroom weatherboard house on a 653sqm section at 7 Taumata Rd was a record for the large sector of Sandringham south of Balmoral Rd.
Mr Elia said the house had north-facing views towards central Auckland and the Sky Tower.
It had also been extensively renovated, but that was three years ago, and nothing had been done to it since its "supposed valuation" in July at $1,120,000.
"It just goes to show how irrelevant capital valuations are to market prices," he said. "Sandringham has lifted because Mt Eden has become somewhat unaffordable for a lot of people."
Real Estate Institute chief Helen O'Sullivan said the sale price was "a remarkable figure for that part of town". It compared with a median price of $740,000 for houses sold in Sandringham in the 12 months to October.
Median prices for Auckland have meanwhile hit a new high amid an 11.8 per cent increase in national sales last month in a big spring resurgence - although numbers remain 2.4 per cent down on the same time last year.
Institute data puts the median for the former Auckland City at $640,500 after a rise of $3500 from the previous record in March.
That also represents a 10.1 per cent or $58,500 increase from October last year.
The region's median price rose by $25,500 (4.1 per cent) just in October, with the largest increases recorded from the former Waitakere and Manukau cities.
- Additional reporting Anne Gibson
Valuation far too high, say Torbay couple
Tara and Craig Heta say the council has over-valued their Torbay home. Photo / Peter Meecham
Craig and Tara Heta are objecting to the new capital value of their four-bedroom home in Torbay on Auckland's North Shore because of the possible impact on rates.
It shot up to $890,000 - $140,000 more than they paid for it three months ago.
The couple bought the property after it passed in at auction. But according to the Auckland Council's new revaluations the property, with a 220sq m 1970s house, is worth $330,000 more than in 2011.
It's a rise of almost 59 per cent, much larger than the average Auckland increase of 34 per cent.
The land alone soared from $355,000 in 2011 to $570,000.
The Hetas are among 240 people who have objected to valuations so far, saying the 1179sq m property should be $700,000 based on its condition and other houses in the street.
The two-storey home features four bedrooms, a rumpus room and two-and-a-half bathrooms, but "needs a lot of work", Mrs Heta said.
A house next door is similar in size, at 200sqm, and is on 1200sq m of land. But despite selling for $865,000 a few months ago and being renovated, complete with a pool and landscaping, that property's CV was put at less than the Hetas', at $880,000.
Mrs Heta, a school teacher, and Mr Heta, who works in public health, said they now felt disadvantaged by the high revaluation and its likely impact on rates.
"We're concerned because that's an increased cost we've got to face," Mrs Heta said.
The current rates are $2,245 but it's unclear how much they will go up by.
On Monday, the council released the assessments of 525,000 properties - 86 per cent of which were residential.
How to object to your revaluation
• The objection period is open for 30 days from November 10
• Objections can be made online on the Auckland Council website
• Objectors can also download a form from the site and post it to the council
• The process for making an objection will be displayed on rates notices
• Objections close on December 19 and new rates kick in from July 1, 2015.
