The inner Melbourne home of former prime minister Julia Gillard has sold for more than $300,000 over the asking price.

Several hundred people attended the auction of the house at 9 Medford Street in Altona, in Melbourne's inner-west.

Bidding began at $500,000 and reached $921,000 after 25 minutes or so of spirited bidding.

Ms Gillard owned the house for 15 years. She and her partner Tim Mathieson moved to Adelaide after vacating The Lodge earlier this year.