Julia Gillard’s Melbourne home has sold for a whopping $921,000 – to one of her biggest fans.

Hundreds gathered in Altona to see the former prime minister’s modest three-bedroom brick house go under the hammer for more than $200,000 over the reserve.

During an intense 35-minute auction, five bidders fought it out for 9 Medford Street, which was declared on the market at $680,000.

Ms Gillard, who was giving selling instructions on the phone, was “over the moon” at the result, Jas Stephens real estate agent Anna Grech, who handled the sale, told AAP.

“She’s celebrating,” she said.

“If we had to take Julia Gillard out of the equation, the house would be worth about $650,000.”

The successful bidder was a man buying for his wife, who is Ms Gillard’s number one fan, according to Ms Grech.

“I’m not kidding. She loves her. She wanted the house for that,” she said.

“She’s got a young family.

“They’re going to live in the property.”

Ms Grech says the price was a record for the street and the auction probably one of the longest the agency has conducted.

The agency expected the house might fetch $700,000 because of Gillard’s fame.

“We always knew it’s going to get more than what a house is worth in the area but how much more you don’t know,” Ms Grech said.

“It was phenomenal, 10 out of 10.”

“Something with a bit of history, something with a little bit of a twist to it, people will pay for that.”

Ms Gillard now lives in Adelaide with her partner Tim Mathieson.