Sold: 168 Johnston St, Annandale fetched $1.87 million despite its run down condition. Source: Supplied

The century-old home at 168 Johnston St has been in the same family for more than 60 years and in that time has passed four generations of the same clan.

The run down property in Annandale needs a full renovation. Source: Supplied

The home has been in the same family for more than 60 years. Source: Supplied

The four-bedroom, two-storey house was bought by John and Peleheja Stengel back in 1953 after the pair had immigrated from the Ukraine after World War II.

Originally the inner west home had elaborate interiors including velvet wallpaper and imported chandeliers, but now the home is in need of a total makeover.

ANNANDALE HOUSE ORIGINALLY EXPECTED $1.5 MILLION

Najib Rahme of Micrah Projects, who had registered to bid on the property, said the renovation would cost approximately $1 million.

“I think that to bring it up to the standard of the neighbourhood it would take a million. I’d put a double lock up garage out the back and a granny flat too — that’s what the neighbours have done,” he said.

There is a basic bathroom but no functioning kitchen. Source: Supplied

This was the family’s kitchen once upon a time. Source: Supplied

“But at that sale price it’s just not worth it for developers like me,” he said.

“These prices in Sydney at the moment mean we’re going to have to start looking out of the city for projects,” he said.

Bidding began on the run down residence at the $1.5 million mark and a 20 minute auction process drew out the sale.

Although selling agent James Burke of Callagher Estate Agents had marketed the home at “more than $1.6 million” the hammer finally fell at $1.87 million.

One developer estimates the Annandale house’s renovation will cost about $1 million. Source: Supplied

The Stengels granddaughters, who wished to remain anonymous, said it was a very emotional day.

“I don’t think I will be able to drive down this street again,” one granddaughter said.

Once the house is in a livable condition, Mr Burke said the property could fetch a price tag of $2.2m to $2.5m or about $1500 a week in rent.