NEWCASTLE Knights captain Kalyn Ponga has added to his property portfolio after snapping up a Merewether home at auction on Saturday.

The 24-year-old NRL player won the auction for a three-bedroom property set on 508 square metres.

The purchase was made just days before it emerged the Newcastle Knights were investigating video footage of Ponga and teammate Kurt Mann being escorted out of a toilet cubicle by security.

The auction attracted 17 bids in total from six registered bidders including five from the local area and one from Melbourne.

Bidding was competitive, according to listing agent Simon Wall of Simon Wall Property, who set an auction guide of $1.95 million.

"It was competitive, and it was pretty rapid from the opening bid of $1.9 million," Mr Wall said.

Mr Ponga was represented by former Newcastle Knights player and buyers agent Josh Smith, who bid on his behalf.

The rugby league star and his parents were also on-site at the auction on Saturday afternoon.

The 1930s weatherboard and tile home is within walking distance to Dixon Park Beach, Bar Beach and Merewether Beach.

"It's a magnificent beachside location," Mr Wall said.

"It's only 300 metres from Dixon Park Beach, and it is probably one of the last opportunities so close to the beach for a knockdown rebuild."

Mr Wall said the NRL star's plans for the property are to eventually knock down the existing home and rebuild.

"The plan is to knock down and rebuild his own premises but he hasn't decided on when that will be," he said.

"He just saw it as too good an opportunity not to secure given that it is so close to the beach."

The property previously sold for $795,000 in September 2008 and is currently leased to tenants.

The sale adds to Ponga's growing property portfolio, which includes a three-bedroom house in Charlestown purchased in November 2021 for $950,000 through Green Street Property.

The two purchases cement Ponga's intentions to call Newcastle home after he signed a five-year contract with the Newcastle Knights in April.

The deal will keep the State of Origin representative in the region until at least the end of 2027.

Ponga joined the Knights in 2018 on a four-year deal and has since become one of the marquee players in the NRL, representing the Queensland Maroons in State of Origin and the Maori All Stars.

He was recently ruled out for the rest of the season after failing his third HIA of the season in Round 19.