PHOTO: The auction for 21 Holmesdale St, Marrickville attracted a big turnout. Picture: Tim Hunter. Source: News Limited

Sydney’s home auction market has sprang back to life, with some homes selling for up to $550,000 above their reserve prices after attracting fierce bidding from crowds of buyers.

A rundown Marrickville house sold under the hammer today for nearly $1.6 million and $300,000 above its reserve price — just to be knocked down and replaced with duplexes.

The property on Holmesdale St offered house hunters plenty of scope for improvement with an interior of splintered timbers and carpets worn down to the concrete underneath.

There was also a rickety garage out the back that looked like it could cave in with just the slightest push.