‘Can you lend me a few bob to buy this home, I’m a little short’: Tiny Sydney house overshadowed by skyscrapers expected to fetch $3.5 m

Wedged between two high-rise buildings, a tiny Sydney house is on the market with a massive price tag that shows Sydney’s housing market has reached staggering heights.

Located in St Leonards, on Sydney’s north shore, the house is expected to fetch a whopping $3.5 million, despite only being situated on a 223 square metre block.

The single-level property, with two street frontages, was initially purchased as a house 75 years ago and then converted to the headquarters of the family-run jewellery business John Clarke & Son.

However, the owner is now looking to close the business and move on, agent Tim Grosmann said.

“It was a house when they bought it and then they converted it; when you go in there it still looks like a house,” he told News Corp.

Despite its size, Mr Grossman says the uniqueness and proximity to St Leonards train station has meant it has been popular with would be buyers, including developers.

“It’s relatively small, it’s quite palatable, and so there are lots of smaller developers looking at it,” he said.

“Most likely it’ll be a mixed use development so ground floor retail and residential units above; 99 percent of enquirers (have been) looking to redevelop in that form.”

The house goes to auction at 10.30am on June 17.