A single outdoor car parking space described as a 'small slice of a premier suburb' has been sold at an auction for $120,000 in Kirribilli, north of Sydney.

A crowd of 60 people, including neighbouring residents, had gathered in an attempt to secure the 29 Carabella Street parking spot on Saturday, Domain.com.au reports.

The parking spot had a reserve price of $50,000, and attracted a high interest from potential buyers - a true indicator of the lack of space in Sydney.

The 12-square-metre parking space in Kirribilli, north of Sydney, sold for $120,000 on Saturday

'Whether you've got a Peugeot, Ferrari, Porsche or Ford, your car will have a fabulous view,' Auctioneer Edward Riley told the crowd before the auction kicked off.

'You can even add value by sweeping the leaves from the corner and re-painting the lines,' Mr Riley continued.

The bidding of the 12-square-metre parking lot started at $25,000 and left neighbours puzzled as it quickly escalated to $70,000 above reserve and sold at a whopping $120,000.

The winning bidder acted on behalf of an investor who owns an apartment in the connecting building.



The winning bidder acted on behalf of an investor who owns an apartment in the adjoining building

In a decade of selling real estate, Nigel Mukhi of McGrath Neutral Bay said he has never had a listing like this one.

'It is unprecedented, so we had nothing to compare it with,' Mr Mukhi said, and added that they based the price on what it had been renting for and worked backward.