A Brunswick shed with a tiny street face has sold for $1.2 million at auction.

The former Victorian cottage turned printing factory in valuable Barkly Street sold for well over its reserve price of $970,000 on Saturday.

The one-bedroom, one-bathroom property sits on 225 square metres and has a street frontage of just 5.5 metres.

Auctioneer Stuart Mitchell, of Barry Plant Coburg, said the opening bid of $950,000 surprised everyone there and showed, from the outset, that there was significant interest in the property.

He said that about five potential buyers continued to contest for the keys for the unusual property, with the bidding continuing well into the high $900,000 bracket.

But it was a knockout bid of $1.2 million that sealed the deal for the eventual buyer, leaving some happy sellers.

Zoned commercial, the site drew interest from residential and commercial bidders, but the buyers plans to transform it to its former glory.

The Victorian facade remains in tact and the building has high ceilings, which the agency says will allow for a reinvention to a house.

The Brunswick area continues to be a highly-sought location for residents and business owners. The median house price, according to the most recent Domain Group house price report, is $1,082,500.

Agents continue to report keen interest from buyers, who want in on the area's ongoing gentrification, thanks largely to the strong food scene, excellent public transport and proximity to the CBD.

Properties on small blocks of land going well over reserve price is not new to the area. Earlier this year, a rundown share house sold for $1.4 million, well over its reserve.