A house in Donnybrook, Dublin, sold for €4.6 million yesterday, making it the highest price achieved at auction for a residential property in recent years.

Milverton, a five-bedroom Edwardian at 34 Herbert Park, Donnybrook, became emblematic of Ireland’s boom and bust when it sold in 2005 for about €8 million and three years later came back on the market with an asking price of €13.5 million.

The 400sq m (3,700 sq ft) red-brick is situated beside Herbert Park on a third of an acre.

A number of price drops ensued until it was placed on the market through a receiver in recent weeks with a €2.75 million guide price through Lisney auctioneers.

When the bidding process opened at the St Stephen’s Green auction yesterday, seven bidders moved the price up in increments of €100,000, until it was finally bought by a solicitor in trust.

The high-profile sale had been widely anticipated by industry observers, because the house is generally considered to be one of Dublin 4’s finer homes despite the area’s fall from grace.

It was expected to go for more than the advised minimum value but people wanted to know where the market would fall.

According to auctioneer David Bewley: “This is a really important auction for everyone in the business because it represents a move forward for the market. A lot of people were there to see what the market had to say, and it will help inform decisions, and get people off the fence.”

At the same auction, 38 The Rise, Mount Merrion, sold for €745,000 from a guide price of €500,000.