When Kevin Palmer died, in February, he left behind a house that belongs to another era.

Port Melbourne, one of the city’s most richly historic areas and the gateway for a generation of sea-faring migrants, has undergone an enormous upheaval of gentrification over the past 20 years.

A once-staunchly working class neighbourhood has been replaced with a forest of residential towers.

But wedged between two multi-storey developments lies a single-level anachronism.

Fairfax journalist Chris Johnston heard about the house at 17 Nott Street and its owner, Kevin, when he was covering Port’s urban renewal.

“The house was literally surrounded, enveloped and suffocated by apartments. There were tradies literally climbing on his roof to build over the top of him,” Mr Johnston says.

“His house seemed to me to be a symbol… of the end of old Port Melbourne and the beginning of new Port Melbourne.”

Neighbours say Mr Palmer lived in the house for 86 years of his 88 year life. Others say it was 84.

As neighbours sold and towers sprung up around him he rebuffed offers from developers, and nudges from his family who co-owned the house, to sell, says local mechanic and long-time friend, Graham Piera.

“Had he moved from that place he would have passed away.”

Carmen Chung, a neighbour and friend, met Kevin during a photography project.

“I found him so charming – money to him was not very important. The more you got to know him the more you found him to be a gentleman,” Ms Chung says.

He was well known and well liked in the area. Hundreds of people turned up to his funeral.

“My brother said ‘if the world had more Kevs it would be a far better place’, and it’s very true I reckon,” Mr Piera says.

But his death brought the inevitable sale of the Nott Street home. It went to auction on Saturday through agent Frank Callaghan, of Frank Gordon Real Estate.

The 157 square-metre site, without heritage overlay, and zoned mixed-use sold to a man who plans to build either a new home or apartments on the site.

Nine bidders pushed the house well past its $1.05 million reserve to $1.38 million – more than $8000 a square metre.

“We had a mixture of people who were looking to occupy the property and also to develop it, so we felt there would be a degree of elasticity around the price,” Mr Callaghan says.

“What we’re seeing is that as the area morphs there is a demand now for really high quality, large homes. What you’d describe as that warehouse-style of very large, single dwelling, with basement car-park and a lift.”

The buyer, Lou Lihari, says the surrounding high-rise development encouraged his interest in the property.

“Knowing that you’ve got eight or nine levels either side, there’s another option should I not go down the path of building a home,” Mr Lihari says.

Sister Margaret Williams says her parents’ will stipulated Kevin was allowed to live there until he married and moved out. But he never did.

“He was once offered just under $800,000 but he wouldn’t take it. We would have liked him to take it at the time and put him into a unit, but no, he wanted to stay here,” Ms Williams says.

“He was happy here”.