Joel Soldado, of Harcourts Newcastle, marketed the New York-style warehouse conversion at 14 Power Street with a guide of $1.35 million to $1.45 million.

It was bought for $1.41 million by a prominent Newcastle figure, who wished to remain anonymous, with interest coming locally and from out of town.

"We had multiple offers and we had in excess of 200 enquiries," Mr Soldado said. "It was such a unique property."

Once a warehouse for Shoey's supermarket chain and then a local printing business, it was transformed into a three-bedroom, two-bathroom "urban sanctuary" over two levels around 14 years ago and has 432 square metres of living space.

The home has original steel beams and trusses, timber floors and a soaring pitched roof. An industrial-inspired kitchen with ironbark benchtops and a huge butler's pantry is the centrepiece of open plan living that flows to an alfresco entertaining area.

In its first week on the market, Mr Soldado reported over 100 enquiries with "wow" factor providing the appeal.

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According to Australian Property Monitors data, the previous highest sale for Islington was $1.1 million, paid for an apartment in the Soque Warehouse Apartments in 2018. The fringe city suburb has grown in popularity in recent years.

"Islington has always lagged behind in that median sale price just because there hasn't been some larger key sales," Mr Soldado said.

"Those properties definitely exist but people love where they live and don't have the need to move or sell. This one was one of those, where it had been in the same family for 15-odd years.

"There's some amazing properties in Islington but a lot of those amazing properties haven't become available. [The sale] shows Islington is definitely moving and it's got tremendous potential."

The result comes after Harcourts also set a new suburb record for Tighes Hill in March with the $1.5 million sale of a waterfront property at 5 Sparke Street.

In other recent results, First National Newcastle City sold a block of nine one-bedroom units at 48 Frith Street in Kahibah for an undisclosed figure to a local investor. It was marketed with a guide of $1.8 milltion to $1.9 million and is understood to have sold within that guide.

A five-bedroom residence with a pool at 6 Lowana Crescent in Kahibah has been sold by Belle Property Charlestown for $956,400.

A brand new three-bedroom home at 2C Paley Crescent, Belmont South overlooking the lake was sold by One Agency Eastlakes for $918,000.