Ben Fabretto and business partner Dean Vella splashed out $1.4m to secure the 1013sq m site at 169 McKillop Street, Geelong at Saturday’s auction.

Three bidders contested the tired double fronted character home just around the corner from Garden Street, pushing the price $400,000 above expectation.

RELATED: Superstar property spots of the past decade

Former Geelong Cats lodging house up for sale

Short stay market could prove lucrative bet

Hodges, Geelong West agent Marcus Falconer said the rare chance to buy such a large parcel of land in the area drove competition.

“It sold to developers and they were competing again someone who just wanted it as a family home,” Mr Falconer said.

“They took it right up to them.”

Mr Vella said he knew it would take deep pockets to secure the property when the opening bid landed at $950,000.

“It’s a big price,” he said.

He and Mr Fabretto are yet to finalise plans for the site, but intend to build high-end townhouses capitalising on the north-facing backyard and rear access off Heath Place.

The existing four-bedroom, one-bathroom hasn’t been touched in decades and was billed as having “good bones” ripe for renovation.

Mr Falconer told the auction crowd the property’s versatility was a rare commodity.

“You could retain the house and put two on the back subdivision, bulldoze and develop or build your dream home,” he said.

“You can take this building and development in different directions.”

The property is just a few doors down from one of Garden Street’s popular cafes and is walking distance to the CBD and waterfront.