A state house in the inner Auckland suburb of Sandringham has sold for more than a million dollars.
Number 94 Haverstock Road sold for $1.05 million, while number 96 next door has sold for $860,000.
Bidding was reported to be frantic at the auction, held this week.
Housing New Zealand said the sale price for the two bungalows exceeded its expectations.
"It means money can be spent building and improving other state homes for families in need," general manager asset development, Sean Bignell, said.
"Money from the sale will be invested in building and improving other state homes in areas we need them - homes that are warm, dry and modern."
The value of the Haverstock Road properties was in the land, as the houses were older style state houses with original features, he said.
Both had large sections perfect for subdivision.
Housing New Zealand is selling 19 houses in Haverstock Road which is near Mt Albert Grammar School.
The 17 remaining houses, on seven separate titles, are being removed from the sections and sold by tender this month.
"As a public-sector organisation, we made the decision to sell the land to a private purchaser as it is too costly for us redevelop within this Auckland residential area," Bignell said.
The tenants of the 19 properties were all in other state houses, and Housing New Zealand said it covered reasonable relocation and reconnection costs.