11 The Esplanade has sold for $22 million. Picture supplied

A low-level, 1970s block of flats on the Esplanade near Cronulla beach has sold at auction for $22 million.

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The agent, Highland, said the result for 11 The Esplanade was the highest price ever secured at an auction in Sutherland Shire.

There were six registered bidders when the property went under the hammer on Thursday night, April 16, but only two bids - for $20 million and $22 million.

11 The Esplanade has sold for $22 million. Picture supplied

The two to three-storey building is currently configured as two oversized full-floor apartments, but the 588sqm property was promoted as having "outstanding potential for significant redevelopment or boutique enhancement".

Development potential has been enhanced by the state government's low to medium range housing policy, which would allow a six-storey building.

The identity of the buyer, who is believed to be from the shire, was not divulged.

The auction created a stir in the area because sales at this level usually involve private treaty.

Location of the property at 11 The Esplanade, Cronulla. Picture supplied

The new Highland HQ auction room in Cronulla drew a big crowd, ranging from developers to curious locals.

Sales agent, Mitchell Wynn said strong demand for the property was obvious very early in the campaign.

"We sent out 24 contracts and had a total of 207 inquiries, with engagement remaining consistent leading up to the auction," he said.

Highland chief executive David Highland said the strong interest in the property "highlights Cronulla's continued evolution as a premier suburb and reflects sustained demand at the upper end of the market".

"It's no surprise there was a battle for new ownership of this oceanfront block."

The view from 11 the Esplanade. Picture supplied

Chief Operating Officer Laura McKay said the location had "exceptional views across the Cronulla coastline to the horizon with lifestyle amenities, dining destinations, boutique retailers, and key transport links, just minutes away".

"It's also one of a very few north facing properties on the Cronulla Peninsula," she said,