- One of Auckland's skinniest houses in Ponsonby is for sale but has watertightness issues.

- Agent Carl Madsen says the three-bedroom property will likely be demolished by its new owner.

- The 96sqm house, built in 1996, has an RV of $880,000 and goes to auction on July 23.

One of New Zealand's skinniest houses is up for grabs this week in the heart of Auckland's Ponsonby, but there's a catch - one that has nothing to do with size.

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Barfoot & Thompson listing agent Carl Madsen told OneRoof that the three-bedroom property at 4a Fitzroy Street has watertightness issues and would likely be demolished by its new owner.

It's "not for the faint-hearted", he said.

How do you tell if you're in a buyer's market or a seller's market? Opes Partners economist Ed McKnight explains the drivers of each and what signs Kiwis should look for. Video / OneRoof

The three-bedroom, 96sqm house for sale at 4A Fitzroy Street, in Auckland's Ponsonby, has watertightness issues. Photo / Supplied

How do you tell if you're in a buyer's market or a seller's market? Opes Partners economist Ed McKnight explains the drivers of each and what signs Kiwis should look for. Video / OneRoof

The listing invites buyers to either renovate the property or demolish it. Photo / Supplied

How do you tell if you're in a buyer's market or a seller's market? Opes Partners economist Ed McKnight explains the drivers of each and what signs Kiwis should look for. Video / OneRoof

The house has an RV of $880,000 - quite cheap for the suburb. Photo / Supplied

"We're selling it as is, and it's really up to purchasers to work out what to do. It's not a matter of just going in there and thinking you can re-Gib and paint it. You really have to work it out, but if you can work it out, then there's a really great opportunity.

He added: "The consensus is that it's probably easier to pull it down and start again."

The 96sqm cross-lease property is three storeys high and just over 3.65m wide. It was built in 1996 and has an RV of $880,000 - quite low for the suburb.

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Madsen said potential buyers should read the disclosures and the conditions of the sale. "You have to work with the neighbour, but our understanding is that they have no objection to something of a similar dimension and footprint being [built]."

"You can have yourself a really lovely little home there. You'll have to build it from scratch, but if you can work out how to do it, you could do something pretty amazing there within the dimensions of what you've got."

He added: "It doesn't have the character overlay that most apartments have, so you can do something contemporary there as well."

How do you tell if you're in a buyer's market or a seller's market? Opes Partners economist Ed McKnight explains the drivers of each and what signs Kiwis should look for. Video / OneRoof

Barfoot & Thompson agents Carl Madesen with his wife and co-listing agent Rosanne. He said the house was "not for the faint-hearted". Photo / Fiona Goodall

The home is a five-minute walk from Ponsonby Road’s restaurant and café strip. "It's in the fun part of Ponsonby," Madsen said.

"The first house that my wife and I owned in Ponsonby was on Brown Street, about two or three doors away from this. And it was absolutely fantastic because we were far enough away from Ponsonby Road to not have spillover, but we were close enough - and it was good fun."

4A Fitzroy Street is not the only home on the street that's up for grabs. Barfoot & Thompson agent Matt O'Brien is selling 1/4 Fitzroy Street, a two-bedroom townhouse which he describes as a "Ponsonby Goldmine".

- 4A Fitzroy Street, Ponsonby, Auckland, goes to auction on July 23