Some of the more interesting items included a Swiss watch that sold for $9800, while a Nazi armband sold for $220.

Armitage Auction manager Terry Bell said it was not the first time the auction house had received German war memoribilia.

"We actually hate selling this kind of thing, and get a bit of flack from people," Mr Bell said.

He said the armband is associated with a horrific time in history, but said it was still a collectable piece of military history.

He said the last time he sold German war memoribilia, he received considerable complaint.

"It is very difficult for me, but the person who actually sold that collection donated the money to the tsunami appeal.

"That person thought: `I may as well sell it and give it to a worthwhile cause."'

Chabad House honorary manager George Goldsteen said people in the Jewish community would be disappointed by the offer of sale.

"Anything to do with Nazis is totally against us because of the history," Mr Goldsteen said.

"At the same time we can't really stop people from selling that kind of thing."