A former railway cottage at Hillgrove has sold for $28,000, while basic holiday homes in nearby Moeraki can sell for between $300,000 and $500,000.
"In an area where property entry level is around $500,000 this is unbelievable," Ray White sales agent Diane Pile said.
The cottage, which has a large leasehold section, attracted about 5000 hits when the Dunedin-based vendor advertised it on the internet.
Since Ms Pile had the listing, she had also had more than 5000 hits and inquiries from throughout the world, with people attracted by the low price.
One man came from Australia to view it.
The four-bedroom, weatherboard cottage, between the railway line and State Highway 1, has been sold to a young local man who "just loves it" and he intended living in it as a permanent home.
Ms Pile estimated the cottage, which she described as "relatively liveable", was about 100 years old.
It was once a post office and the toilet was in the old safe, she said.
