A Ryde couple in their 20s have had their dreams of a home for their young family dashed at the last minute by a property developer known locally as “Testosterone Tony”.

When asked later what his limit had been, the developer shrugged and said: “Doesn’t matter – we own the one next door and two behind.”

The auction of the three-bedroom weatherboard home at 97 North Road, Ryde – which sold for $1.51 million, $230,000 over reserve – was one of just 263 scheduled around Sydney on Saturday. There were fewer than last week due to the holiday weekend. With 187 of the results in by Saturday evening, Domain Group put the clearance rate at 76.6 per cent.

In Ryde, cement renderer Ali Dandan, 28, looked to have it in the bag. When a first home buyer opened proceedings with a $1 million bid, Dandan came back with $1.2 million. When another young bidder offered $1.23, Dandan said $1.3 million.

These two then battled it out in an exciting exchange of $5000 bids. Dandan’s wife, Rianne, 24, a medical receptionist, looked on in horror as her determined husband sailed right past their limit. “He said $1.5 million and I thought, ‘What the hell’,” she confided later.

But the developer was simply biding his time. Standing at the back, his first and only bid of $1.51 million caught everyone by surprise.

As Dandan shook his head in disbelief and announced to auctioneer Mark Roberts “I’m out”, the developer’s friend thought it was a great joke as auctioneer Mark Roberts declared the property sold.

“What do you do?” asked Dandan, who has a three-year-old and a one-year-old. They’ve outgrown their small unit and need a house. “We’ve been looking for about a year and we keep on getting beaten at auctions – it’s just very tough for young families.”

It was an emotional day, too, for vendor Maree Woodcock, whose husband, John, had been a carpenter. Working as a shift worker at the Shell oil refinery to pay the bills, he’d devoted his weekends over 2½ years to lovingly build the house, with his wife standing by.

“The timber was pre-cut – we put it together,” Mrs Woodcock said.

“John was 23 and I was 20 …we were married in June, 1959, and we moved in on the 15th of November.”

She wasn’t sure what he’d paid for the block – “it was before I was on the scene” – but their mortgage was £2600, which they paid off in their 30s.

She had hoped another young family would buy their home. The developer, who didn’t reveal his name, said he didn’t know how many villas he’d build on the site. He has his eye on several neighbouring properties, too. “There’s good money in it,” he said.

The agent, Max Pracy​, of Tracy Yap Realty in Epping, said there had been 19 contracts out on the 632-square metre property, which was close to the popular Denistone East Public School.

The price guide had been $1.1 million to $1.2 million. “The owner would have taken anything over $1.15,” he said. “No one gave me feedback over $1.2 million.”

In other results, at Camperdown in the inner west, a two-bedroom apartment in the award-winning Sugarmill warehouse conversion at 21/1 Gibbens Street was popular – selling for $1.83 million – $480,000 over reserve.

The north-east facing large private terrace made this one a winner: Joseph Tropiano of Belle Property Newtown issued 46 contracts and 38 people registered to bid for the 134 square-metre unit. It sold to a Darling Point downsizer.