Would you pay close to $2 million for a 2 bedroom villa?

An inner-city terrace opposite Alexandria Park in Sydney drew a lively crowd on auction day.

Seven bidders fought for the keys at 79 Buckland Street, Alexandria, where character met scale after recent updates.

The Victorian terrace home spans a generous 5.4 metre internal width, with exposed brick, timber floors, high ceilings and original fireplaces preserving its period warmth.

Ray White agent Dalton Stewart said the campaign drew 85 groups through the home, a response he attributed to the property's balance of charm and practicality.

Bidding opened at $2.75million. "It was slow-going at the start," Stewart said, "but it gained momentum at the three-million dollar mark when bidders realised things were getting to the pointy end."

The final two bidders traded steady advances before one pushed the price to $3.27 million, securing the home for a young professional purchasing his first property.

According to view.com.au property history the home previously sold in November 2016 for $1.955 million.

"It was one of the strongest results I've seen for a while in this suburb," Steward said.

"There aren't a lot of good houses out there at the moment, but people found this to be a solid home in a great street."

"Though this was a good result, I'm trepidatious. It's a patchy market at the moment. The feelings I'm getting are mixed. But I personally think stock will increase with demand in the new year."

Sydney recorded 1,100 auctions this week, down 11.9 percent from the previous week. The preliminary clearance rate slipped 3.6 points to 61.5 percent, according to Cotality, the weakest early result since the week ending June 8.

2 bedroom villa unit draws big-money in downsizer duel

A tightly held Brighton villa unit at 7/20 Outer Crescent, Brighton sparked a concentrated but determined bidding battle in Melbourne's southeast, with two serious buyers pushing the price beyond expectations.

"It was a small and cosy crowd, but it delivered a really competitive match-up from start to finish," said Belle Property agent Will Johnson.

Bidding opened at a confident $1.5 million before climbing in steady $10k and $5k advances. The contest eventually settled at $1.8 million.

"It was a really strong result for a two-bedroom unit," Johnson said. The keys were secured by a local downsizer who had watched the campaign closely.

Johnson said the result reflects a clear shift in buyer behaviour.

"The cost of homes and lack of inventory seems to be driving more demand for villa units," he said.

"Even investors are showing more interest in these types of properties. People want something low-maintenance without giving up space or lifestyle."

The seller, helping her mother part with the long-held home so she could enjoy her golden years, watched the sale unfold with relief.

Melbourne recorded 1,646 auctions this week, according to Cotality, almost identical to the 1,643 held the week before.

The preliminary clearance rate slipped to 65.5 percent, a three point drop that marks the lowest early result since late September, when activity slowed during the Melbourne Cup Racing Carnival.

Rainy day doesn't dampen crowd in regional Victoria

A rainy-day in southeast Victoria hosted four bidders competing for 53 Koroit Street, Warrnambool, a centrally-located, three-bedroom cottage.

Just minutes' walk to the CBD, beach and Lake Pertobe, the property drew 100 onlookers curious to see who's day would be brightened with a win. Bidding opened at $700,000, with rallying plays from three bidders.

Set behind established trees, the three-bedroom cottage features high ceilings and original floorboards.

Ray White's Chris Thomas said lifestyle appeal was key to the result. "It's so well preserved after renovations," Thomas added, highlighting the new kitchen, bathroom and laundry.

The sellers, who had lived in the home for nearly 14 years after purchasing in 2012 for $389,000, were upsizing.

When the hammer fell at $871,000, interstate buyers from South Australia secured the property amid strong interest from both local and interstate investors.

"I'm seeing lots of buyer confidence, not only locally, but also from outside investors," Thomas said.

He noted a limited rental supply was also influencing the market. "There's an under-supply of rentals that seem to be pushing first home buyers into the regional areas."

A bungalow adjoining the outdoor entertaining area offers flexible space that could be used as a fourth bedroom or granny flat. The property's location, just a few minutes' walk to the CBD, the beach, and Lake Pertobe, adds further appeal for families and downsizers seeking lifestyle and convenience.