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SYDNEY, Dec 15 (AFP) - A public toilet was sold for 510,000 dollars (288,000 US) here in a weekend auction proving the continuing strength of Sydney's property market, the jubilant selling agent said Sunday.

The former council toilet block, zoned for business use in the inner city suburb of Leichhardt, had attracted interest from local cafe owners and business people wanting to use it as a space for parking.

But the new owners slipped quietly away after the auction without revealing their plans.

Real estate agent Gary Giezekamp said estimates had put its value at between 110,000 and 160,000 dollars -- a quarter of the price eventually realised after spirited bidding by five serious contenders.

"We would have been happy with around 300,000 dollars, and we never dreamed it would reach half a million," Giezekamp told reporters.

The tiny, 91-square-metre (110-square-yard) block consisted of three cubicles and a large oak tree which conservationists are determined to preserve, backed by preservation orders around the municipality.

During bidding which attracted hordes of curious onlookers, spilling on to the street and causing traffic congestion, one person held up a sign to warn bidders: "You can't cut down the tree."

The toilet is the latest piece of Sydney real estate to sell for record -- some would say astonishing -- prices during a recent property boom.

A market fuelled by low interest rates and government incentives to first home buyers, has seen home prices double and even treble in some desirable suburbs during the past five years.

This has led to what property analysts say is a glut of apartments, many being sold off the plans to investors, including quite a few from Asia, who plan to lease them.

One real estate agent in suburban Ryde told AFP rents had already fallen significantly in the last year or so and the oversupply of apartments is such that investors may find difficulty in renting out their properties when they are completed.

However, agents reported continuing brisk sales in weekend auctions for most of the 310 properties on the market, with clearance rates around 61 percent -- only slightly down on previous weeks -- for the last full auction weekend of the year.

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